Paul Krugman, the economist of choice for all socialists, keynesians and big spending governments everywhere, wrote an article in the New York Times (H/T American Spectator) providing support for Obama’s latest push to tax the ‘millionaires and billionaires’.
The United States already has one of the most ‘Progressive’ income tax systems in the world. It’s estimated that the top 1% of Americans pay nearly 40% while the bottom 50% contributes only 3% of personal income taxes collected. So providing evidence to support Obama’s class warfare requires some serious playing around with the numbers. Hence this chart which he highlighted in his article.
Just look at all those nasty rich people living off the backs of the hard working middle class.
However, the Australian economist blogger, Catallaxy Files, points to the creativity of the chartist along the x-axis. Quintiles for the lower income groups, followed by smaller and smaller divisions as incomes rise. He then calculates the same chart but using uniform divisions for each income group.
As the man said, it’s the way you tell ’em.