Arkansas Senator John Boozman appeared yesterday on KUAF’s Ozarks At Large show discussing taxes and the budget with Talk Business producer Roby Brock (the Boozman segment starts around 7:45). At one point he declares that he would reject any tax increase on the rich even if every dollar in new taxes were “offset” by 10 dollars in spending cuts. Nothing surprising there. Boozman also claims that the tax burden on US businesses is “second only to Japan” in the world (not true but Boozman does mention the issue of tax loopholes), that “the majority” (50-60%) of those filing in the highest federal tax bracket are small business owners (false), and that US federal spending “historically” has been around 19% of GDP (Reagan spent between 21.2% and 23.5%).
By far the most brazen distortion out of the Senator’s mouth comes in response to a question about taxing billionaires, at 10:15 in the podcast:
“51 percent of the public don’t pay any federal taxes right now.”
This of course is not true. Boozman meant to say that half the public don’t pay federal income taxes. This would still be highly misleading. The federal income tax is by design a progressive tax which mostly falls on earners of mid and high incomes, based on the principle that everybody should contribute according to their means. But all working people in America pay significant amounts in federal payroll taxes (which fund Social Security and Medicare), federal gas taxes (which fund interstate highway construction and maintenance), and others including state and local sales and income taxes. Most of these taxes disproportionately burden low income workers. For example, incomes above about $106,800 are exempt from payroll taxes! As a result, as documented in an earlier post, the US tax system taken as a whole is not progressive at all: the rich pay about the same overall tax rate as the poor.