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-- let -- take a quick time now the federal government is gonna raise taxes on upper income households many states like New York are gonna do the same.
Many groups to -- good because they believe the wealthy aren't doing their fair share how many times you heard that not doing their fair share.
Let's walk you through now some of the real numbers and -- -- tax myths.
-- of the tax facts using numbers directly from the CBO the Congressional Budget Office.
-- number one.
The bush tax cuts only benefited the rich.
The fact is all income levels yes including the rich but all levels had their tax rate cut in fact.
The lowest tax rate went from 15%.
Down to just 10%.
Myth number two top earners are not doing -- fair share back.
Since those tax cuts the overall burden on the rich as a percentage of all income tax take -- this has gone up.
The richest 10% of Americans paid 72 and a half percent of all income taxes in 2005.
Just 10% folks up from 67.
And a half percent just five years earlier.
Myth number three the tax burden is too much on the lower -- The fact is the lowest 60%.
Of earners those in America making 44300.
Dollars a year or less.
Paid less than 1%.
Of income taxes in 2005.
And that burden came down from just 3.3 percent.
And myth number four same thing tax burden too much on the lower at the bottom up.
Of all earners made nearly 46% of all income.
Get paid no net income taxes in fact that 33 billion back and refunds in 2005.
And page -- sixteen point 3% of all taxes.
Payroll taxes -- can argue for higher taxes all you want lot of people say we're not progressive enough attacks it's.
But you can't argue though is that it's nearly impossible to argue that the upper -- paying.
In the all the income taxes in this country so now the guy that got us all think it on this tax stock this morning.
Ari Fleischer he's a press secretary of course for president George W.
Bush and today.
He offered excellent op Ed in the Wall Street Journal entitled everybody should pay income taxes.
And he walked us through these numbers.
And is -- is not just economic folks he also said that having such a small percentage of people paying nearly all the taxes.
Hurts something else democracy -- joining us by phone -- Excellent piece this morning thank you so much for joining us.
Are your point is that and -- people argue for higher taxes on the wealthy because they have it your point is that everybody should pay some -- -- tax.
Otherwise maybe they're not pulling their own way.
What won this thing that bonded together as Americans I think as a moral point.
It is that we all have a stake in the outcome of what our government does know we have the rescue on the pilots who have that the captain is -- from the -- -- -- paying for the military we all need to pay newspaper environmental protection we all the detective.
And we have a system now -- it's 10%.
Up and pays 72% of the income taxes of 68% just a few short years ago.
And now under president Obama's proposal almost 50% of this country's going to get let off the hook.
I have no obligation to bid for the Pentagon the environment rose or anything else.
That's does not -- the box.
Well but -- but the -- and -- argue listen you know we're -- all these taxes while other groups are saying you're not doing your fair share.
But you've got more money you should be taxed higher do you think that we are progressive enough in our income tax structure.
-- that you have aluminum progressive income tax code I believe that if you have more you should pay more but it doesn't mean that.
50% of the country she can run off the hook that is redistribution of income run amok.
And it's also terrible for the economy long term because as we're seeing now we have a deep recession and we have.
Particularly the upper end of people getting hit laid off.
-- trillion dollar deficit.
And it's because we don't have a broad enough tax based.
And this is a problem that also hinders economic growth so it -- ramifications across the board.
If he does and so what is the solution no do you think we need something like a bat like a national sales tax you know -- lost -- -- -- -- read his book.
Reefer madness about for the underground economy of drugs and illegal aliens and it was suggested about 10% of Americans up paying in other sort of off the books.
And drug dealers are gonna pay income tax but they are gonna buy stuff they're gonna buy clothes -- gonna buy cars are gonna buy groceries.
Do we need a national back to better capture.
Some of the tax money or some of the income that's just floating around out there untaxed.
Absolutely not because the history of most European nations have created bats that they got the worst of both -- they have both income taxes Ambac.
They just became a way for the government to get more money to spend more money.
But my solution frankly it is to abolish all payroll taxes social security and Medicare tax is the conflict -- lower income people harder even though they get the money back on the retire.
And -- -- all the deductions and credits -- -- -- entirely.
Brought on the tax base.
Eliminate many of the loopholes and deductions at the world to take advantage I have what I call it economic growth code.
Whose purpose is to raise revenue so the government can pay its bills not to solve every problem in our society -- to redistribute income.
And I -- a broader base we can have a lower rates were especially if we get rid of all the loopholes the deductions.
And lower tax rates.
Our goal is another way to promote economic growth of the broader base.
Ari Fleischer is a pleasure and if you haven't read his op -- it's on today's Wall Street Journal also on the website -- thank you so much for joining us on America's nightly scoreboard operator thank you.
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