What economists call the “tax wedge” is the gap between what an employer pays for an employee’s services and what the employee receives after taxes. It causes some jobs to disappear entirely, as employees and employers may not be able to agree on a wage once taxes are taken out of the paycheck. It causes some employees to flee to lower‐tax countries, states, or cities.
Category: Taxation
Posts about theft
Federal Taxes: 1958 and 2019
Even though the top statutory individual income tax rate has fallen from 91 percent in 1958 to 37 percent today, overall federal taxes appear to be far more “progressive” today than in the past.
Tax Increases and the Great Depression
Did tax increases deepen and extend the Great Depression?
Laffer and coauthors argue that the “chief cause of the Great Depression was taxation.” That is a bold claim because policymakers made many mistakes during the 1930s. Aside from adverse monetary and tax policies, the government undermined the economy with regulatory interventions, labor union laws, and a general antagonism toward businesses and high earners.
New Analysis Finds Expanded Child Tax Credit Reduces Work and Growth
As policymakers continue to look for ways to make family life easier, more convenient, and more affordable, it is key that they avoid reforms that inadvertently undermine families or reduce the size of the economy and associated opportunities for workers.
https://www.cato.org/blog/new-analysis-finds-expanded-child-tax-credit-reduces-work-growth
America’s Disappearing Income Inequality
Accounting for taxes and transfers, which better reflects Americans’ actual living standards, Early’s report also shows that U.S. income inequality actually declined over the last 70 years – contrary to popular belief.
https://www.cato.org/blog/americas-disappearing-income-inequality-2
Taxes and Interstate Migration of Seniors
One group that states want to attract with tax cuts are seniors and retirees. Just this year, 10 states cut their taxes on retirement income, which means income from Social Security, defined‐benefit (DB) plans, and defined contribution (DC) plans, such as 401(k)s.
https://www.cato.org/blog/taxes-interstate-migration-seniors
Taxes, Regulations, and Small Business in California’s Marijuana Industry
this is just another way that regulation contributes to inequality.
https://www.cato.org/blog/taxes-regulations-small-business-californias-marijuana-industry
“Beast Mode” IRS Already Armed and Dangerous
The IRS is a “rogue agency without accountability,” targeting taxpayers who have broken no laws and doing it for political purposes. Those responsible for the crackdown suffered no consequences, all part of the IRS “recent scandals and abuses of its power.”