America already has a flat (effective) tax!
Given the constant griping of many media personalities and Republican politicians about how unfair it is that the rich are burdened with an excessive tax burden in our “progressive” taxation system, it’s surprising to learn that our tax system is actually barely progressive at all!
America effectively has a flat tax when you look at what people actually pay in all taxes rather than what their highest marginal income tax rate is.
After crunching tax numbers, Citizens for Tax Justice issued a report that concludes America’s effective tax rate is basically flat, except for the lowest-income Americans:
The total federal, state and local effective tax rate for the richest one percent of Americans (30.9 percent) is only slightly higher than the average effective tax rate for the remaining 99 percent of Americans (29.4 percent).
From the middle-income ranges upward, total effective tax rates are virtually flat across income groups.
Their report includes data and a chart.
Posted by James on Tuesday, April 21, 2009