Professor Mark J. Perry's Blog for Economics and Finance
"Americans pay far more in individual income taxes than residents of other wealthy nations. Nearly 37 percent of U.S. tax revenue came from personal income taxes in 2006, about 10 percentage points more, on average, than in other industrialized countries. But we pay much less in sales taxes; 17 percent of 2006 U.S. tax receipts were from taxes on goods and services, or about half the 32 percent average for rich countries."
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
12 Comments:
But the good news fades if you are living in Michigan where our governor desires to implement a new tax on all services in addition to the state's sales tax. And most assuredly our Fed income is on the rise. Good News, Bad News??
Rhetorical question, what took the WaPo so long to figure it out?
Courtesy of the CBO: Effective Federal Tax Rates and Shares Under Current Tax Law, Based on 2001 Incomes, by Income Category, 2001 to 2014
Rhetorical question, what took the WaPo so long to figure it out?
Courtesy of the CBO: Effective Federal Tax Rates and Shares Under Current Tax Law, Based on 2001 Incomes, by Income Category, 2001 to 2014
"Almost half of Americans pay absolutely nothing."
In terms of federal income taxes, that is true. However, let's not forget the most regressive tax ever imposed on the American worker, Social Security. Just about every working American pays that tax, and someone who makes minimum wage is taxed at a rate ten times higher than someone who makes $1 million per year.
But we pay much less in sales taxes; 17 percent of 2006 U.S. tax receipts were from taxes on goods and services, or about half the 32 percent average for rich countries
Obviously that's because they have a VAT and we don't.
let's not forget the most regressive tax ever imposed on the American worker, Social Security
Once you adjust for the benefits formula, SS is a quite progressive tax.
Randian has it right about the old age pension in Social Security it is very progressive. Recall that the formula takes your average current dollar earnings averaged over 35 years and pays 90% of the first 761 per month, 32% of the average between 761 and 4568 and 15% between 4568 and the earnings limit. So it is terribly progressive and as designed a welfare program. I see eventually the limit being removed and a new 3 bend point at the indexed limit and 5% payed beyond the limit.
Have a long overdue long term enquiry into the tax system.Extend tax collection onto people who don't pay anything by introducing a Goods and Services tax on everything.
Revamp the corporate tax system to make it fairer and drop any taxes on employment of people.Get politics out of it altogether by abolishing old taxes and introducing new ones without government involvement.
How can "2. Americans are overtaxed." be called a myth just because "..we pay far less than people in other wealthy countries."?
Is it a myth that I'm overweight simply because lots of other people are obese?
Entitlements drive tax rates
So do defecits
"So do defecits"?
Where do you think deficits come from?
New CBO Budget Baseline Shows Entitlements Driving Budget Deficits Higher
stupid nieve governments and fools that think the day of reckoning will never come,or they won't be around for it,e.g. george bush allan greenspan.
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