The Adam Smith Institute has a good joke (click; I won't spoil it) about how the law creates results we don't intend. Despite the portrayal of tax cuts (for example, this letter to the editors of our local paper today), the data show that in 2005 the top 1% of the income distribution paid 39.38% of federal income taxes, the highest share paid by that group in 25 years. ("But King! Supply side economics is bunk!" When you get an operational definition of supply side economics, get back to me on that, OK? It surely does not mean across-the-board tax cuts provide 100% revenue recovery, and those who portray it as such engage in caricature.)

Labels: economics, taxes