Another Year, Same Tax Lies

Here we go again. The media is selling the poppycock that taxes are puny. Note the happy contrast between now and the Bush years. Seems like I have to address this bloody issue every year. Tax receipts to the federal government are low because of the crappy economy and people are likely engaged in tax avoidance of every legal sort...I know I am. Furthermore, a meaningful portion of tax receipts is capital gains taxes, which can be highly variable from year to year, and investors were completely in the dark about what rate they would pay on capital gains. Finally, when the Republicans took the House in November and the issue looked to get resolved, a wave of tax selling that likely would have occured at the end of the year did not happen as investors got more breathing room to defer gains, bringing down potential tax revenues for the government. So let me repeat, tax receipts and the tax burden are not the same thing, and the relatively low amount of collected taxes in no way argues in favor of current taxation policy.

UPDATE: Check this out from TaxProf...told ya' so.