Download More Battles over Tax Burdens
Summary
1. Because of the deficit and other factors, there will be a continual testing of sentiment to retain or raise top marginal taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rates.
2. The historical record does not support charges that the Federal tax system has become much less progressive and rewards the rich.
3. The specific way the Tax Reform Act of 1986 was crafted leaves an opening for top rate hikes, but, if rates are raised, they will have to reach down to at least the upper-middle income groups to realize significant revenues.
4. Fiscal policy restraint and value-added taxation are viable alternatives to income tax increases.
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