(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 taxesThe 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:
The euro left is suggesting a double switch here
ReplyDeleteOff 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