Saturday, February 16, 2013

SocImages: The Poor Pay More Taxes

Politics, Discourse, and the Real Tax Rate on the Rich and Poor:
The current political discourse is so focused on a single form of government revenue, that the word taxes has become essentially synonymous with just one tax in particular; the federal income tax.

The non-profit, non-partisan Institution on Taxation and Economic Policy recently released its research on the taxes families in the United States paid in 2010.  These findings reveal when the focus is taken off the federal income tax and the entire tax system is examined, cumulative household taxes in nearly every state are regressive because the less money a family makes, the larger proportion they pay to the different levels of government.  As the graph below shows, the cumulative tax system is regressive because sales, excise and property taxes offset progressive income taxes at both the state, and federal levels.

Notice this was not written by anybody who's last name is "Paul."

I can only hope our next election cycle will feature more nuanced discussions about taxes, that is to say, none at all.