U.S. Tax Code Is One of World’s Most Progressive

April 15, 2011
51 Views

Writing in The Washington Times, Cato Institute Senior Fellow Richard Rahn explains that the United States tax code is one of the most progressive in the world. Over the past 30 years it has actually become much more progressive.

Writing in The Washington Times, Cato Institute Senior Fellow Richard Rahn explains that the United States tax code is one of the most progressive in the world. Over the past 30 years it has actually become much more progressive.

  • The top 1 percent of taxpayers pay 38 percent of all the income taxes despite having just 20 percent of the income.
  • The top 10 percent of taxpayers pay 70 percent of the income tax while having just 46 percent of the income.
  • At the other end, the bottom 50 percent of taxpayers pay just 2.7 percent of the income tax while having 13 percent of the income.

According to Rahn, this has increased government spending:

This has resulted in a situation in which a relatively small minority of taxpayers pay the bulk of the taxes, while most American pay little or no income tax.  This is causing an increasing disconnect between benefits from government and what most citizens pay for.  One result is a greater polarization in the political realm where a majority of citizens increasingly demand more government benefits for which they want others to pay.

Reversing course and making the tax code less progressive would temper demand for new government services when people realize they will have to pay for those services through higher taxes.

   

You may be interested

How to Alleviate Stress Related Insomnia
Specialties
400 views
Specialties
400 views

How to Alleviate Stress Related Insomnia

JohnHenning - August 15, 2017

Do you have difficulty falling asleep or staying asleep every night? You aren't alone. According to multiple studies, including one…

4 Hormones That Play a Critical Role in Your Well being
Wellness
437 views
Wellness
437 views

4 Hormones That Play a Critical Role in Your Well being

Erica - August 15, 2017

Hormonal health and wellbeing have received plenty of attention lately, both from the medical community as well as from health-conscious…

The Benefits of Providing Homecare in Your Health System
Home Health
397 views
Home Health
397 views

The Benefits of Providing Homecare in Your Health System

Jennifer E. Landis - August 14, 2017

In-home health care, colloquially known as homecare, offers untold benefits for both patients and the health care professionals providing the…