Good Point

Jonathan Chait makes a good point regarding how to think about taxes:

There's nothing particularly unfair about judging a tax plan by what percentage goes to the rich, because the point is to compare it with other uses of the same money. McCain's tax plan would give 40% of its benefit to the richest 1%. Can't voters question whether they should support a policy that mostly benefits the rich, rather than an alternative use of the money with more broadly-shared benefits?

Now, I agree that a more precise analysis would compare what percentage the rich would get with what percentage they already pay. But knowing what proportion of the tax burden the rich already pay tells you nothing unless you know what proportion of the income they earn. 26% of the tax burden might be a lot of the richest 1% were earning, say, five percent of the national income. In fact, they're earning about 22% of the national income. Kind of a relevant fact, right?

Tuesday, October 7, 2008