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Scott Hodge, President Will Mcbride, Chief Economist
Scott Hodge, President Will Mcbride, Chief Economist
Scott Hodge, President Will Mcbride, Chief Economist
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How much the rich actually pay the fair share issue At what rate they pay effective tax rates How many people dont pay the nonpayers Millionaires and Billionaires Causes of inequality issues beyond the reach of tax policy
II. CRS looks only at tax rates on personal income and capital gains, and relates that to investment, productivity, and growth.
I. The biggest tax on investment is the corporate income tax, which CRS ignores. The capital gains tax, and the dividend tax, is just one additional layer, along with the estate tax. Their regressions relate one year tax changes to one year growth changes, when in fact saving and investment often takes years and even decades to come to fruition.
III. CRS takes no account of the long term effects of tax policy.
I.
Tax Policy Center Claims Romneys Plan Would Raise Taxes on Middle Class, but Assumes Zero Economic Growth
Cash Income Group
Average Change in After-tax Income from Romney Revenue-Neutral Tax Reform Plan ($ per tax unit)
Static TPC Estimate (0%) 0.5% Increase in Pre-Tax Incomes -82 -198 -302 -418 -624 1.0% Increase in Pre-Tax Incomes 20 35 36 48 91 1.5% Increase in Pre-Tax Incomes 121 269 375 514 806 2.0% Increase in Pre-Tax Incomes 223 502 714 979 1,521
$0-$30,000
$30,000-$50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$200,000 $200,000-$500,000 $500,000-$1,000,000 $1,000,000 + All Tax Units
1,808
17,136 87,117 0
3,274
20,517 100,454 404
4,740
23,898 113,792 808
6,206
27,279 127,129 1,213
7,672
30,660 140,466 1,617
Payroll Tax Increases top rate from 2.9% to 3.8% Other Taxes in Affordable Care Act Maintains Estate Tax Maintains Gas Tax Maintains Tax Revenue as a Share of GDP in 2015 19.4% Spending as a Share of GDP in 2015 22.4% Deficit as a Share of GDP in 2015 3.1% Publicly Held Debt/GDP in 2015 79.4% Balanced Budget Never * Based on the "Buffett Rule" minimum tax of 30%. ** Includes the 3.8% investment tax under the Affordable Care Act.
Maintains Eliminates Eliminates Maintains 18.0% 20.0% 2.0% Not Scored 2020