High-Income Taxpayers, Progressivity, and Inequality

A Preliminary Look at 2018 Tax Data

Initial 2018 IRS tax return data shows that the TCJA expanded the use of several credits and deductions, made the standard deduction more favorable than itemizing, reduced tax refunds, and lowered taxes for most Americans.

Washington State Judge Opens the Door for Income Taxes

How Much Turnover Is There Among the Richest Americans?

Senator Van Hollen Introduces Proposal to Raise Taxes on High-Income Households

Van Hollen’s proposals add to the long list of Democratic Party tax proposals that attempt to both raise additional revenue from corporations and high-income households and make the tax code more progressive and “equitable.”

Millionaires’ Tax Take Two: Massachusetts legislature moves forward Millionaires’ Tax

The Tax Proposal That Refuses to Die: New Jersey’s Millionaire’s Tax

A Property Tax is a Wealth Tax, but…

Warren’s comparison between the property tax and her proposed wealth tax makes a good sales pitch. However, there are important differences between the taxes. By no means is the property tax in many jurisdictions perfect, but it is generally better structured than a wealth tax.

The Long View on the Top Marginal Income Tax Rate in Austria

The Alternative Minimum Tax Still Burdens Taxpayers with Compliance Costs

Although Congress intended the AMT to be a tax on wealthy taxpayers, for much of its history it has subjected middle-income taxpayers in high-tax states to heavy compliance burdens. TCJA reforms that have increased the AMT’s exemption and exemption phaseout threshold will shield some taxpayers from the AMT through 2025, but the number of taxpayers impacted will increase in 2026 when the TCJA’s individual income tax reforms expire.

Putting A Face On America’s Tax Returns: Summary

Who really bears the burden of federal taxes? How progressive is our current tax system and what role do taxes play in the debate over income inequality?

New Report Shows the Burdens of Payroll and Income Taxes

The tax burden for most Americans in 2019 –67.8 percent—will come primarily from payroll taxes, not income taxes. While the income tax is progressive, with average rates rising with income, the payroll tax is regressive, with the highest average rate falling on Americans with the lowest incomes.

Average Income Tends to Rise with Age

Average income tends to rise dramatically as someone ages and gains education and experience. Viewing just one year of income tax data without digging any deeper misses some crucial context.

Is Increasing the Capital Gains Tax Rate the Right Way to Generate Revenue?

A Growing Percentage of Americans Have Zero Income Tax Liability

From 1986 to 2016, the top 1 percent’s share of income taxes rose from 25.8 percent to 37.3 percent, while the bottom 90 percent’s share fell from 45.3 percent to 30.5 percent.

How Do Transfers and Progressive Taxes Affect the Distribution of Income?

Federal tax rates vary by income group and tax source. The federal tax system redistributes income from high- and low-income taxpayers.

Hollywood Entertainers of Yore Dodged Higher Income Tax Rates

Who Wants to Tax a Millionaire? The State of New Jersey

The Top 1 Percent’s Tax Rates Over Time

In the 1950s, when the top marginal income tax rate reached 92 percent, the top 1 percent of taxpayers paid an effective rate of only 16.9 percent. As top marginal rates have fallen, the tax burden on the rich has risen.

Sanders’ Estate Tax Plan Won’t Likely Raise the Revenue Intended

While progressivity may look appealing—particularly at a time when policymakers in Congress seem to be competing on how best to extract revenue from the wealthiest in the country—it may not raise the revenue intended.

Income Taxes on the Top 0.1 Percent Weren’t Much Higher in the 1950s

Recent plans to increase the tax burden on wealthy Americans, such as higher marginal income tax rates and wealth taxes, are flawed in several ways, including in their lack of understanding of tax history.