Tax Foundation and CBPP: An Interesting Concession
April 2, 2013
We're busily working the phones here at TF, doing media interviews on our Tax Freedom Day 2013 report released earlier today. A big, big thank you to all of you who are helping get the word out! A quick note that from that report page, you can download graphics and data tables if you need them.
The Center on Budget and Policy Priorities (CBPP) has just released their annual "refutation" of Tax Freedom Day, and their associated state groups will be forwarding it along shortly. We respond to their criticisms here.
Anyway, while that's important, the real reason I write because of an interesting concession they make in order to refute Tax Freedom Day. Most days, CBPP and its allies complain about how regressive the tax code is, how rich people don't pay enough, and how low-income people are hurt by taxes more than high-income people.
But not today. In order to complain that Tax Freedom Day is not a distributional analysis, they point out that those top quintiles pay a ton of federal taxes and those bottom quintiles pay almost nothing. They even include a nifty chart for understanding ease:
Turns out those bottom quintiles pay next to nothing after all, and that the federal tax system is pretty progressive. I'm glad CBPP can be accurate on this, at least if only once a year.
I wish you all the best for our 16 remaining days before Tax Freedom!