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To: craig crawford who wrote (108356)	6/13/2001 8:55:07 AM
From: flatsville	Respond to of 436258

craig-- If your using the type of analysis like the section I quote below note that they use data from 1981 through 1988. So of course it looks like as they claim "reduction in high marginal tax rates can induce taxpayers to lessen their reliance on tax shelters and tax avoidance,and expose more of their income to taxation." They just conveniently fail to tell you that one of those tax bill, TRA '86, took many of those tax shelters away...Oops Now who's being disingenuous? LOL >>>The share of the income tax burden borne by the top 10 percent of taxpayers increased from 48.0 percent in 1981 to 57.2 percent in 1988. Meanwhile, the share of income taxes paid by the bottom 50 percent of taxpayers dropped from 7.5 percent in 1981 to 5.7 percent in 1988. A middle class of taxpayers can be defined as those between the 50th percentile and the 95th percentile (those earning between $18,367 and $72,735 in 1988). Between 1981 and 1988, the income tax burden of the middle class declined from 57.5 percent in 1981 to 48.7 percent in 1988. This 8.8 percentage point decline in middle class tax burden is entirely accounted for by the increase borne by the top one percent. Several conclusions follow from these data. First of all, reduction in high marginal tax rates can induce taxpayers to lessen their reliance on tax shelters and tax avoidance, and expose more of their income to taxation. The result in this case was a 51 percent increase in real tax payments by the top one percent. Meanwhile, the tax rate reduction reduced the tax payments of middle class and poor taxpayers. The net effect was a marked shift in the tax burden toward the top 1 percent amounting to about 10 percentage points. Lower top marginal tax rates had encouraged these taxpayers to generate more taxable income.<<< house.gov