Just think that through. Tax rates under Obama are less than Reagan, Bush Sr, Clinton, and Bush Jr. since the CBO has been tracking this essentially. Our deficit is caused in great part from a lack of revenue. The tax cuts that President Obama has passed during his administration were targeted to the middle class to stimulate the economy knowing that although it would not be as effective as increasing spending on infrastructure and shoring up state budgets to prevent layoffs … it would be the only type of stimulus that he could get passed.
And now Republicans continue to yell about how much Obama is taxing the middle class with OBAMACARE and all of these other taxes that are like mystical unicorns in their mind. Tax rates under Obama are lower than any president in modern history.Period. Now – you may ask yourself … why would the Republican party be so upset if tax rates are at historic lows? I’m sure that a false sense of outrage has nothing to do with it. But it does show that tax cuts, tax cuts, tax cuts IS NOT the best solution to get out of a recession quickly.
The non-partisan Congressional Budget Office issues a report HERE:
Average Federal Tax Rate for All Households Reached the Lowest Level Seen in the 1979–2009 Period
Average tax rates depend on tax laws and economic conditions. The average federal tax rate—that is, households’ federal tax liabilities divided by their income (including transfer payments) before taxes—was 17.4 percent in 2009 for all households and ranged from 1.0 percent for households in the lowest quintile to 23.2 percent for households in the highest quintile (and to 28.9 percent rate for households in the top percentile).
The overall average federal tax rates of 18.0 percent in 2008 and 17.4 percent in 2009 were the lowest in the 1979–2009 period and were well below the previous low of 19.4 percent in 2003 and the average of 21.0 percent over that period. For most income groups, the 2009 average federal tax rate also was the lowest observed in the 1979–2009 period. The pattern in the intervening years is more varied, reflecting the interaction of numerous changes to tax law and changes in the composition and distribution of income.
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