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Author: Knighted Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 740229  
Subject: Liberal myths dispelled Date: 11/13/2012 11:53 PM
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Below are several popular myths perpetrated by the left that have been deceptively fed to the average American as fact - solidly dispelled.

1) Myth: "The rich aren't paying their fair share. They are paying less than the middle class and poor do."

Fact: The rich pay a disproportionately high tax rate in this country, far higher than the middle class and poor. The chart below proves this with unbiased data taken from the US Treasury. The top 1% pay an effective tax rate of 30% in federal taxes while the poorest 20% of Americans pay a tax rate of around 5%.

http://tcftakingnote.typepad.com/.a/6a00e54ffb96988833015434...


2) Myth: "Government spending is not the problem. It's a revenue problem."

Fact: As shown below, government spending is at record highs and has been rising at the local, state, AND federal level as a share of the overall economy on a continuous upward slope for decades. Today, government as a whole consumes almost $0.50 of every $1.00 produced in this country, whereas it consumed only $0.07 of every $1.00 back in 1910.

http://static.seekingalpha.com/uploads/2012/2/496474_1328214...


3) Myth: "The problem with the US's poor education system is that we're just not spending enough money on it."

Fact: As shown below, the US spends more money per student than every country in the world but Switzerland, and by a large margin. If money was the problem, US students would be the brightest in the world.

http://mercatus.org/sites/default/files/International%20Educ...


4) Myth: "Top tax rates were 90% in the 1940's/50's and the US experienced unprecedented growth. This proves that tax hikes make the economy grow and/or don't harm economic growth."

Fact: First, the 90% top rate applied to virtually no one since the income limits were so high. Second, the tax code was radically different back then and after the myriad of deductions, no one actually paid this rate. In fact, the average effective tax rate, or the tax rate people paid after all deductions, was lower in these years than today.

That destroys the argument that high taxes somehow boost or don't affect economic growth. The countless economics studies compiled below by MadCapitalist that were conducted by a myriad of non-partisan sources prove that low taxes boost economic growth and that high taxes in fact hurt economic growth.

http://boards.fool.com/taxes-and-economic-growth-30045166.as...


5) Myth: "Oil companies don't pay their fair share in taxes."

Fact: As shown below, the oil industry and its companies pay an enormously high tax rate averaging close to 40% on their profit. This is more than almost every other industry in the US. Moreover, oil companies also have a profit margin below the national average. In fact, oil companies make less profit on a gallon of gas than the government does in taxes, despite the fact that they do all of the work exploring, producing, refining, and delivering it.

http://www.instituteforenergyresearch.org/wp-content/uploads...
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