DEBT SPENDING - WILL THE AMERICAN PUBLIC GO FOR MORE GOP SPOONFULS IN 2008?
I was very remiss this week that Harry Reid didn't take time to tell the President to send up a payment plan with his wartime supplemental.
Everywhere, the GOP boosters are trying the best they can to rescue their beloved GOP. Except, is it driving them to the brink of ... incompleteness.
From the NY Times, even, we get this incomplete piece of information, purporting to show that Federal tax rates have been going down, especially among GOP Presidents.
Another one has run this chart.
THE GOP RAISE TAXES ALL THE TIME
Wild debt-spending is just a form of deferred tax, unless you really believe that it never has to be paid back (if so, why not just stop taxing people?).
Most people will tell you that King George "The Decider" lowered income taxes, the top rate from 39.6% to 33%, or some 7.6%.
But debt-spending is just deferred taxes. He's actually just shifted how much is due in taxes to a later time.
In fact, if one added up all of the debt run up by Reagan, Bush-father, and Bush-son, here is one estimate of the one-time increase in taxes that would be required to pay it back, by income quartile, in 2006 dollars:
| FY2006 | 10.9% | 14.6% | 15.5% | 15.2% | 18.7% |
Table. Deferred taxes - adding up debt-spending
Cumulative gross national debt by President, apportioned by income quintile in current dollars, expressed as an estimated tax-increase, i.e. as a percentage of current income for that quartile.
| FY | low 5th | 2nd 5th | 3rd 5th | 4th 5th | top 5th |
|---|---|---|---|---|---|
| Bush-43 | 5.3% | 7.1% | 7.5% | 7.2% | 8.8% |
| FY2008 | 4.9% | 6.6% | 7.0% | 6.7% | 8.2% |
| FY2007 | 4.5% | 6.1% | 6.4% | 6.3% | 7.7% |
| FY2006 | 3.9% | 5.3% | 5.6% | 5.5% | 6.8% |
| FY2005 | 3.3% | 4.4% | 4.7% | 4.7% | 5.6% |
| FY2004 | 2.6% | 3.5% | 3.7% | 3.7% | 4.4% |
| FY2003 | 1.6% | 2.2% | 2.4% | 2.3% | 2.8% |
| FY2002 | 0.7% | 1.0% | 1.1% | 1.0% | 1.3% |
| Clinton-42 | 2.5% | 3.3% | 3.5% | 3.5% | 4.3% |
| FY2000 | 2.3% | 3.1% | 3.3% | 3.3% | 4.0% |
| FY1999 | 2.5% | 3.3% | 3.5% | 3.4% | 4.1% |
| FY1998 | 2.4% | 3.2% | 3.3% | 3.3% | 4.0% |
| FY1997 | 2.3% | 3.0% | 3.2% | 3.2% | 3.8% |
| FY1996 | 2.0% | 2.6% | 2.8% | 2.8% | 3.3% |
| FY1995 | 1.5% | 1.9% | 2.0% | 2.0% | 2.4% |
| FY1994 | 0.8% | 1.0% | 1.1% | 1.1% | 1.3% |
| Bush-41 | 4.4% | 5.8% | 6.2% | 6.2% | 7.5% |
| FY1992 | 3.8% | 4.9% | 5.2% | 5.2% | 5.9% |
| FY1991 | 2.5% | 3.4% | 3.6% | 3.6% | 4.1% |
| FY1990 | 1.2% | 1.6% | 1.8% | 1.7% | 2.0% |
| Reagan | 6.2% | 8.1% | 8.8% | 8.8% | 10.0% |
| FY1988 | 5.7% | 7.6% | 8.1% | 8.1% | 9.2% |
| FY1987 | 5.1% | 6.8% | 7.3% | 7.3% | 8.3% |
| FY1986 | 4.5% | 6.1% | 6.5% | 6.5% | 7.3% |
| FY1985 | 4.1% | 5.4% | 5.8% | 5.8% | 6.6% |
| FY1984 | 3.1% | 4.1% | 4.3% | 4.3% | 4.8% |
| FY1983 | 2.0% | 2.7% | 2.9% | 2.9% | 3.2% |
| FY1982 | 1.0% | 1.3% | 1.4% | 1.4% | 1.5% |
| Carter | 1.9% | 2.5% | 2.7% | 2.7% | 3.0% |
| FY1980 | 1.4% | 1.9% | 2.0% | 2.0% | 2.2% |
| FY1979 | 0.9% | 1.2% | 1.3% | 1.3% | 1.5% |
| FY1978 | 0.6% | 0.8% | 0.8% | 0.9% | 1.0% |
srce: Census Bureau; Treasury; n.b. census bureau gives top income for each quintile, so their figures should be seen as low-ball estimates, except top-quintile. 2006 cutoffs for the quintiles as as follows: $20,035; $37,774; $60,000; $97,032; $174,012
