...and so an exchange rambles on, heedless of its digression from the
subject line and the question that initiated it. I guess the short answer
would be "Living wage? Kill jobs? Myth? Who cares?"

On Wed, May 11, 2011 at 2:49 PM, Max Sawicky <[email protected]> wrote:

> The effective rates don't speak to the shares borne by income class. So it
> is true that lower income people pay non-trivial rates of tax (in the sense
> of shares of their income), but it is also true that the bulk of the revenue
> comes from upper classes.
>
> http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=558
>
> Naturally, those in lower income levels contribute less because they have
> less income, as brad noted.
>
>
>
> On Wed, May 11, 2011 at 4:22 PM, Doug Henwood <[email protected]> wrote:
>
>>
>> On May 11, 2011, at 1:52 PM, brad wrote:
>>
>> > I don't understand why we would want to debunk the idea that most
>> > federal income tax is paid by the top.  It is simply a sign that the
>> > middle class has disappeared and that the bulk of people now fall
>> > bellow the $33,000 cut off for which low income tax credits reduce
>> > their federal taxes to zero.  If we regrow the middle class their
>> > portion will go up.  You can't squeeze water out of a rock.
>>
>> That's not really true. There have been major changes to tax rates over
>> time. Here are some numbers from the CBO, which I realize make for a less
>> snappy soundbite but have the virtue of being accurate.
>>
>> The first panel of the table is the effective tax rate (what people
>> actually pay, not what's on the books) for the bottom, middle, and top
>> quintiles and the top 1% for all federal taxes; the second is for the income
>> tax only. Note the big shift from positive to negative rates at the bottom
>> (mostly the EITC):
>>
>>
>>            bottom 20%    middle 20%    top 20%       top 1%
>> all
>> ---
>> 1979           8.0          18.6          27.5          37.0
>> 1984          10.2          18.0          24.3          28.2
>> 1994           6.6          17.3          27.4          35.8
>> 2007           4.0          14.3          25.1          29.5
>>
>> income
>> ------
>> 1979           0.0           7.5          15.7          21.6
>> 1984           0.7           6.7          14.1          19.3
>> 1994          -3.9           5.3          15.0          23.0
>> 2007          -6.8           3.3          14.4          19.0
>>
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-- 
Sandwichman
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