Wednesday, April 18, 2012

Interesting graphic on Tax Rates

From the NY Times:

(click picture for larger version)

One of the key things, here, is what is included:
Change in total federal tax rate - which includes income, payroll, estate, and other taxes
The inclusion of payroll taxes is important. Payroll taxes have risen dramatically as a source of federal income over the period (1960-present). Right-wingers who want to show "how good the poor have it" focus only on income taxes. The infamous "47%" who "pay no [income] taxes" - although most people who cite the statistic drop the "income" part - is derived from the partial offset that the Earned Income Tax Credit (EITC) gives to the much higher payroll taxes working people pay. The graphic above clearly shows how limited the offset has been.

From the Tax Policy Center:


1 comment:

  1. The euro left is suggesting a double switch here

    Off payroll taxes and onto the income of wealthy households

    I think we might as well end the corporate income tax and go to a vat

    Wrinkle :
    All corporate earnings distributed or not can be considered taxable income pearly by a change in the tax code
    Large hunks of closely held corporate amerika use the sub s form
    Which handles corporate earnings exactly this way

    Such massive reform
    Might be possible for a progressive- populist administration
    That restored full employment
    burst thru the NAIRU taboo line
    Closed the trade gap

    The exactions of this tax shift and higher yield offensive
    Could be nicely tied to an overt industrial policy
    that included
    The restoration of north American energy independence
    And set itself the task supreme
    A sustainable green production platform

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