David Cay Johnston wrote a magnificent piece called "9 Things The Rich Don't Want You To Know About Taxes." It's absolutely a must-read and a link you should send to everyone. For example:
Despite skyrocketing incomes, the federal tax burden on the richest 400 has been slashed, thanks to a variety of loopholes, allowable deductions and other tools. The actual share of their income paid in taxes, according to the IRS, is 16.6 percent. Adding payroll taxes barely nudges that number.
Compare that to the vast majority of Americans, whose share of their income going to federal taxes increased from 13.1 percent in 1961 to 22.5 percent in 2007.
Yep. Rich people are paying a lower effective tax rate than everyone else. Again, rich people do not pay the 35 percent marginal tax rate. They simply don't. And if it's hiked up to 38 or 40, they still won't be paying that much. In fact...
John Paulson, the most successful hedge-fund manager of all, bet against the mortgage market one year and then bet with Glenn Beck in the gold market the next. Paulson made himself $9 billion in fees in just two years. His current tax bill on that $9 billion? Zero.
Don't let Republicans or glibertarians lie about this. Rich people don't need tax cuts because their taxes are already lower than yours.