IBD Editorial: Code Becoming More Progressive?
January 23, 2008
An editorial in yesterday’s Investor’s Business Daily argues that the income tax code has become more progressive in recent years, not less, citing Tax Foundation research that a growing number of Americans pay no income taxes at all:
Republicans say the rebates should go to taxpayers only—which makes sense, since they are “tax” rebates. Democrats reject this.[…]
More telling, though, is the [CBPP’s] contention that the 58 million U.S. households—out of roughly 115 million total—that have no tax liabilities or simply don’t have to file would get nothing.
Seems to us that if Washington is having a hard time finding taxpayers who are eligible for tax rebates, then a lot of Americans must have been wiped off the tax rolls.[…]
No honest person could look at the data and say that the system favors the rich over the poor.[…]
The editorial includes this chart using data from the National Center for Policy Analysis:
More on the revenue and distributional effects of the stimulus plans here.