Wednesday, September 16, 2009

I Need to Read More Thoroughly:

The paper here. Basic conclusion seems to be that the US has an effective flat tax of 40% for income of ~$20k+.

Federal income taxes are nominally progressive, but state and local taxes are less so at best and often flat or even regressive, wage taxes are regressive, as are sales taxes and sin taxes and auto licensing and energy (e.g. gas) taxes. Property taxes are generally regressive, though could, in some locales, approach flat iff* the assessed value of properties owned within that locale are proportional to income.

I am more than willing to believe that overall taxes above some level are much closer to flat than the federal income tax would lead us to believe. I'm a little confused by some of the early numbers, but I think most of that goes down to the "marginal" tax rate (which is on the last dollar earned, not the sum total). I would like to see the total taxes integrated and calculated in dollars and percentages.


*iff = if and only if...bitches

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