In his usual flair, Paul Krugman once again dissects the arguments that the rich need another tax cut.
He points out the information found in the 2010 Economic Report of the President, presented below:
As you can see, the average tax rate paid by the top income earners has dropped dramatically since the 1960′s. This is not the top marginal rate, mind you, but the average income tax rate paid. By having such a high rate, the incentive for the wealthy is to keep their money invested in their businesses, or to start a new business. Without this rate, the money becomes excess, with the result being an incentive instead to gamble with it, as history has shown.