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It is in fact true that the total local, state, and federal effective tax rate by income level is very progressive.
The top 1% pays a total effective tax rate of 37%
The middle quintile pays... 22%
The bottom quintile pays... 14.3%
Look at my chart that clearly demonstrates the proportion of revenue for states. The large bulk is from property and sales taxes, which are disproportionately paid by those on the lower income strata.
Look at my chart that clearly demonstrates the proportion of revenue for states. The large bulk is from property and sales taxes, which are disproportionately paid by those on the lower income strata.
The chart I posted includes all of that. Again, state and local taxes are only mildly regressive:
Your chart does not include the proportion of revenue for states provided by types of taxes.
That's because it's a total of all local and state taxes. It includes any and all local and state real estate/property tax, sales tax, income tax, etc. Look at the big picture of the total tax burden instead of cherry-picking only some data.
(That chart is interesting in that it includes how federal excise taxes and the corporate income tax affects each income group. Most people don't realize that corporate income tax is included as overhead in the pricing formula for goods/services and is therefore embedded in the price of everything we buy. Corporations don't actually pay it. It's passed on to the end users/consumers. It's a hidden tax on whoever buys/rents a corporation's goods/services/etc., including those in the bottom income quintile.)
While state and local taxes are mildly regressive.
I basically agree. I can work from home and my paycheck isn't directly affected and I'm above the 75k threshold.
I feel bad for all of the food service workers, bartenders all of those types of gigs are the people that are going to really feel this and should get some kind of help.
I ain't for the gobermint giving out money generally speaking, but sometimes they have to make exceptions. This certainly seems like an exception to me.
we are in the same boat. and think alike on this.
i think the goal is to get money in the economy fast....evidently we are all Keynesian... and figuring out who is working still and who isn't would take too much time.
That's because it's a total of all local and state taxes. It includes any and all local and state real estate/property tax, sales tax, income tax, etc. Look at the big picture of the total tax burden instead of cherry-picking only some data.
(That chart is interesting in that it includes how federal excise taxes and the corporate income tax affects each income group. Most people don't realize that corporate income tax is included as overhead in the pricing formula for goods/services and is therefore embedded in the price of everything we buy. Corporations don't actually pay it. It's passed on to the end users/consumers. It's a hidden tax on whoever buys/rents a corporation's goods/services/etc., including those in the bottom income quintile.)
While state and local taxes are mildly regressive.
The combination of the two -- the total local, state, and federal effective tax rate by income level -- is still very progressive.
The top 1% pays a total effective tax rate of 37%
The middle quintile pays... 22%
The bottom quintile pays... 14.3%
I actually looked through the entire article. It is heavily dependent upon how a state gets it's revenue. For instance in Texas, without state income taxes, it is way more regressive than say New Jersey.
The main finding of this report is that the vast majority of state and local tax systems are fundamentally unfair. An overreliance on consumption taxes and the absence of a progressive personal income tax in many states neutralizes whatever benefits the working poor receive from refundable low-income tax credits. The bleak reality is that even among the growing group of states that have taken steps to reduce the working poor’s tax share by enacting state EITCs, most still require their poorest taxpayers to pay a higher effective tax rate than any other income group.
The results of this study are an important reference for lawmakers seeking to understand the inequitable tax structures they have inherited from their predecessors or helped enact themselves. States may ignore these lessons and continue to demand that their poorest citizens pay the highest effective tax rates. Or, they may decide instead to ask wealthier families to pay tax rates more commensurate with their incomes. In either case, the path that states choose will have a major impact on the well-being of their citizens — and on the fairness of state and local taxes.
Last edited by ecko_complex24; 03-18-2020 at 08:20 PM..
Remember when republicans were making fun of socialism a few weeks ago? I guess they had a change of heart.
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