Posts Tagged ‘taxes’

Low Taxes in the US Causing Income Inequality to be High

November 21, 2014

The United States has the highest income inequality among comparable nations. The left-side graph depicts the US as having a favorable Gini coefficient (a measure of income inequality) without taxes. After taxes and government transfers are factored in, the US becomes highly unequal. One of the reasons for this trend is that, although the US uses progressive taxation, the tax rates are significantly lower than the international standard and social welfare programs are also much less generous.

–From The New York Times


Young Amercians Want Taxes Spent on Education, Older Americans Want Social Security

October 29, 2014

Young Americans are very interested in educational spending compared to older Americans, at 24% and 5%, respectively. Job creation spending is of even, and high, interest across all working-age Americans.


Who Benefits the Most from Tax Breaks?

April 16, 2014

Who benefits the most from tax breaks? The answer is, generally, the upper middle class and above who benefit enormously from deductions and exclusions.

–from The Atlantic

Taxes Represent Same Share of GDP as 1970’s

February 25, 2014

Taxes make up about the same amount of GDP as they did in the 1970’s. Although the amount fluctuated over the past forty years, following boom and bust cycles of the economy, the percentage is nearly the same.

–from NPR

Minimum Wage Restaurant Work Costs Taxpayers $7 Billion a Year

October 18, 2013

More than 40% of food service workers get some form of government subsidy, mostly due to low wages and part-time work.


Half of American Tax Filers Earn Less than $30,000

July 11, 2013




Click through for an incredible graphic explanation of American tax payers. or download the PDF.


Implicit Marginal Tax Rates and the Working Poor

June 7, 2013

These two charts show the effective tax rates at various income levels. The tax rate is quite low for those near point B, which is the earned income tax credit payments. However, after making more than $20,000, the implicit marginal tax rate goes over 100% because a number of benefits expire at that income threshold. Around $50,000, the tax rate goes down again, but rises again when a family no longer qualifies for the child tax credit. Click through to see data source details and technical notes.


Government Tax Expenditures Mostly Benefit Richest, Poorest Americans

May 30, 2013

The Congressional Budget Office’s tax expenditures report, released today, shows that the richest Americans benefit enormously from tax breaks–including those of low capital gains rates, tax-free investments such as a 401k, and many others. As a percentage of income, the poorest citizens benefit the most, but the richest 20% account for 50% of total government tax expenditures. The middle 60% benefit the least.

–from the Congressional Budget Office

Corporate Profits and Corporate Taxes Diverged

May 23, 2013

Corporate profits are at an all-time high. However, the tax revenue from this enormous economic boon are near the all-time lows caused by the recession in the early 1980’s. There are many causes, but the result is a clear divergence.

–from The Economist and The Atlantic

Top Marginal Tax Rates, 1916-2010

December 5, 2012

This chart shows the changes in tax rates for income, capital gains, and corporate taxes. As is apparent, tax rates are down significantly compared to most of the twentieth century. However, they are still above the rates seen from the 1920’s until the great depression.