Posted by
On the Right on Friday, November 07, 2008 11:55:55 PM
Since the war on terror began in 2001, Washington has sounded an
intermittent drumbeat for the wealthy to make a greater "sacrifice" in
the form of higher taxes. The dubious charge is that these taxpayers
have been shirking a duty performed in other conflicts.
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Of course, the tax impact on the economy does not measure taxes'
impact on income groups. So are the wealthy paying relatively less?
According to an analysis of the latest IRS data (2006) by Congress'
Joint Economic Committee, just the opposite is true.
The top 50% of income tax filers paid 97% of all income taxes. The
top 5% paid 60%, and the top 1% paid 40% of all collected federal
income taxes. Each of these levels is the highest recorded for which we
have comparable data — since 1986's fundamental tax reform.
"Sacrifice" is evidently not lacking on the tax side of the federal
fiscal equation. The spending side is a different story, however.
If there is a lack of "sacrifice," it lies not with the taxpayers but with the "tax takers."
Washington's talk of "sacrifice" is no more than a stalking horse in
the left's hunt for higher taxes. This call for higher taxes is not so
much about funding the war against terrorism as it is about the left's
desire to use the tax code to redistribute income.
The contrast between taxes and spending during the current and past
three conflicts could not be starker. And it could not demonstrate more
clearly the left's divergent view of taxes. It differs fundamentally
from the rest of America's.

Examining the "sacrifice" charge, we see that income taxes as a
percentage of the economy actually have a higher average during the
current conflict — 8.1% from 2001-07 — than in any of the previous
three: slightly higher than Vietnam's 8% and far higher than the Korean
War and even WWII's percentages.
The overall federal tax burden shows a similar relationship. The
current period's 17.9% of GDP is close to Vietnam's 18% level and far
higher than WWII's or Korea's.