Taxing the Rich Figures

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Source: Website of U.S. Census Bureau
Daniel Baneman and Jim Nunns, "Income Tax Paid at Each Tax Rate, 1958-2009," Tax Policy Center,
October 2011. http://www.taxpolicycenter.org/UploadedPDF/901456-Tax-Paid-Each-Rate.pdf
“Taxation is most progressively distributed in the United States, probably
reflecting the greater role played there by refundable tax credits, such as
the Earned Income Tax Credit and the Child Tax Credit. ... Based on the
concentration coefficient of household taxes, the United States has the
most progressive tax system and collects the largest share of taxes from
the richest 10% of the population. However, the richest decile in the
United States has one of the highest shares of market income of any
OECD country.After standardising for this underlying inequality ...
Australia and the United States collect the most tax from people in the
top decile relative to the share of market income that they earn."
OECD. "Growing Unequal: Income Distribution and Poverty in OECD Countries,
2008, pp. 104-106.
"Benefits
had a much stronger impact on
inequality than the other main instruments of
cash distribution -- social contributions or taxes.
... The most important benefit-related
determining factor in overall distribution,
however, was not benefit levels but the number
of people entitled to transfers."
OECD “Divided We Stand: Why Inequality Keeps Rising,” 2011.
Congressional Budget Office Report. "Trends in the Distribution of
Household Income Between 1979 and 2007." 2011.
The "Overview" of the OECD report states: "However,
redistribution strategies based on government transfers and
taxes alone would be neither effective nor financially
sustainable. First, there may be counterproductive
disincentive effects if benefit and tax reforms are not well
designed. Second, most OECD countries currently operate
under a reduced fiscal space which exerts strong pressure to
curb public social spending and raise taxes. Growing
employment may contribute to sustainable cuts in income
inequality, provided the employment gains occur in jobs that
offer career prospects. Policies for more and better jobs are
more important than ever."
OECD “Divided We Stand: Why Inequality Keeps Rising,” 2011.
"The case for drastic progression in taxation must be rested on
the case against inequality -- on the ethical or aesthetic
judgement that the prevailing distribution of wealth and
income reveals a degree (and/or kind) of inequality which is
distinctly evil or unlovely."
Henry Simons Personal Income Taxation, 1938.
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