Taxes and the top percentile myth

posted by
December 29, 2010
Cato Institute
by Alan Reynolds  
Posted in Commentary

"[T]he left wing of the Democratic Party remains passionate about making the U.S. tax system more and more progressive. They claim this is all about payback — that raising the highest tax rates is the fair thing to do because top income groups supposedly received huge windfalls from the Bush tax cuts. ... Arguments for these retaliatory tax penalties invariably begin with estimates by economists Thomas Piketty of the Paris School of Economics and Emmanuel Saez of U.C. Berkeley that the wealthiest 1% of U.S. households now take home more than 20% of all household income. This estimate suffers two obvious and fatal flaws." (12/23/10)

http://www.cato.org/pub_display.php?pub_id=12663  

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