Tax Reform ATR believes that all consumed income should be taxed one time, at one low and flat rate. Link
GET INVOLVED
ATR ON TWITTER
FOLLOW US-
Groups who advocated for the IRS to prepare tax returns sure look foolish these days: http://t.co/oKvpIofu7Y
May 13, 2013 06:30 PM
taxreformer -
"We don't need the federal government mandating additional taxes..." -@MarshaBlackburn on MFA: http://t.co/lAuLJtr5t3 #NoNetTax
May 13, 2013 06:00 PM
taxreformer -
Health insurers and businesses are already feeling the iron-clad grip of regulations in #Obamacare: http://t.co/J6dfnKqFYZ
May 13, 2013 05:30 PM
taxreformer -
Virginia Governor Bob McDonnell Signs Largest Tax Hike in Virginia History into Law http://t.co/Qd6KOFfaPv
May 13, 2013 03:46 PM
taxreformer -
Under #Obamacare, mothers have had a tougher time purchasing non-prescription, over-the-counter medicine: http://t.co/dJuaGAT9LE
May 13, 2013 02:01 PM
taxreformer -
9 out of 20 #Obamacare tax hikes have not even been implemented yet: http://t.co/opFkyf1guJ
May 13, 2013 01:30 PM
taxreformer -
.@GroverNorquist on MFA: "[The Senate] didn't ask all of the questions that needed to be asked": http://t.co/wXfkIR2Ca9 #NoNetTax
May 13, 2013 01:01 PM
taxreformer -
"When architects of #Obamacare are worried about it creating a trainwreck, you know something's gone terribly wrong": http://t.co/J6dfnKqFYZ
May 13, 2013 12:30 PM
taxreformer -
Conservative and Free Market Groups Applaud Move to Delay a Vote on Gina McCarthy: http://t.co/lNQYmJAB12 #EPA
May 13, 2013 12:02 PM
taxreformer -
The #Obamacare train wreck will derail the American economy: http://t.co/opFkyf1guJ
May 13, 2013 11:30 AM
taxreformer
Email
Print
The Tax Code Is Already Steeply-Progressive
President Obama has called for raising taxes on higher income households in order to make the tax system more progressive. It's already steeply-progressive.
Small business tax hike. President Obama is calling on higher-income households to pay their “fair share.” The first point is that the majority of all small business profits face taxation in households making more than $200,000 per year. To raise taxes on these households is to also raise taxes on jobs-creating small businesses
The income tax is already steeply-progressive. Most income taxes are already paid by households at the top of the income scale (Source = IRS):
| Earnings | Min. Income Threshold | % All Income Taxes Paid |
| Top 1% | $380,000 | 40% |
| Lower Half | $33,000 | 3% |
While the top 1% of income earners pay 40% of all income taxes, the lower half of income earners pay almost nothing. For all intents and purposes, there is no income tax burden on the lower half of income earners.
The income tax has gotten more progressive over time, not less. According to the IRS, the income tax has gotten more progressive over time:
| 1986 | Today | |
| Top 1% | 26% of all income taxes | 40% of all income taxes |
| Lower Half | 6% of all income taxes | 3% of all income taxes |
Even when payroll taxes and other taxes are included, the tax code is extremely-progressive already (Source = CBO):
| Average Earnings | % of All Taxes Paid | |
| Top 1% | $1.87 million | 28% of all taxes paid |
| Lowest 20% | $18,400 | <1% of all taxes paid |
What do you think? Is the tax code progressive enough today, or do we need to raise taxes?
Posted by Ryan Ellis 
on Monday, September 19, 2011 1:00 PM EDT
on Monday, September 19, 2011 1:00 PM EDTTo follow Ryan Ellis's RSS feed click here. To follow them on Twitter, their handle is @ryanlellis
