Adjusted AGI - Why libertarinism is a dead end

Summary of Federal Individual Income Tax Data, 2005 (updated October 2007)

Number of Tax Payers & Percent AGI
Top 10% (Greater than $103,912) 46.44%
Top 25% (Greater than $62,608) 67.52%
Top 50% (Greater than $30,881) 87.13%
Bottom 50% (Less than $30,881) 12.87%


This table show why Libertarianism and constant yakking about Capital gains and tax cuts has limited appeal. It also shows why the Republican party needs social conservatives. Fifty percent of the US population has an AGI of less than $30,881 - and they pay only 13 percent of Federal Taxes. If you make this amount you're probably better off voting Democrat. You can't get these people to vote Republican based on Chamber-of-Commerce talking points. You have to appeal to them on social issues, patriotism, or jobs and the overall economy.

Hoover and Taxes

McCain mentioned Hoover raising taxes during the Great Depression. And yes he did sign a rate increase in 1932. However, the Great Depression started in October 1929 and had been going on for 2 1/2 years before Hoover raised them. Further, the Tax Burden in 1932 was so small that the increase in income taxes made little difference. Total GNP in 1932 was $58 billion, total internal revenue receipts $1.5 billion. Federal Internal Revenue taxes therefore were less than 3% of GNP. And there was no social security payroll tax.

By comparison during the Boom year of 1950 internal revenue receipts were $40 billion out of GNP of $284 billion - almost 15 percent.