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FactCheck.org: Lowest Tax Rates in 30 Years

FactCheck LogoFactCheck.org:  Tax Facts: Lowest Rates in 30 Years:

Politicians talk about the burden of taxes incessantly. Now comes a rare chance to check the facts. And the fact is that federal tax rates had fallen to the lowest in 30 years when President Barack Obama took office — and fell again in his first year in office.

This news comes from the nonpartisan Congressional Budget Office, which just issued the latest update of its invaluable series on Distribution of Household Income and Federal Taxes … Much of the decline in 2008 and 2009 was due to the collapsing economy. … But some of the decline was also due to the tax cuts contained in Obama’s 2009 stimulus package, including a tax credit that benefited nearly all workers. Despite Republican criticisms, and Obama’s own campaign promise to raise taxes on upper-income households, the new president was a tax cutter in 2009.

The CBO figures show rates have declined substantially for all income levels. In fact, the only group for which rates did not reach a 30-year low in 2009 was households in the top 1% of all earners.

… [W]ho are the top 1%? The CBO sorts them out as those with incomes starting at $282,900 for a single person, or $565,800 for a family of four in 2009.

As we’ve noted before, the nation’s current string of trillion-dollar deficits results from historically high spending and historically low revenues. We noted in our June 4 article that President Obama’s spending levels are near the highest level since World War II, measured as a percentage of the nation’s gross domestic product. And we also noted that tax receipts were the lowest since 1950, as a percentage of GDP.


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