Taxes and Income
Arthur Laffer (of Laffer Curve fame) and Stephen Moore of the Wall Street Journal had an excellent piece recently on taxes and income. There were several key items that are worth highlighting.
*Between 1983 and 2005 “households in the lowest income quintile saw a roughly 25% increase in their living standards…This fact alone refutes the notion that the poor are getting poorer.”
*From 1983 to 1992 the lowest income quintile saw their income rise 10%. From 1992 to 2002 the lowest income quintile saw their income rise 11%. Or put another way, “roughly speaking, the Reagan and Clinton presidencies were equally good for them.”
*For people who were in the lowest tax bracket in 1987, 10 years later fully 2/3 had moved into higher tax brackets. Nearly 10% of the original lowest-bracket group were actually in the highest bracket just 10 years later. Income mobility is alive and well.
*The median income for intact families is $78,000.
I was particularly struck by the last item. The notion that the middle class is shrinking is just ridiculous. If you follow the traditional life script (education followed by marriage followed by kids) your chances of achieving prosperity are virtually guaranteed.
Despite the left’s endless yammering, the poor have opportunities here like no where else in the world and the data proves most take advantage of their chances. Free markets and lower tax rates help make that happen. The left’s plans for the economy rather than helping the poor will only serve to help keep them that way.