The Real Class Warfare on Tax Policy Since 1979

This article shows how tax policy has affected different income groups between 1979 and 2005. Tax Policy has improved the post-tax income of those in the highest income groups more than any other group. In other words, tax policy has shifted the tax burden from the wealthiest Americans to the less wealthy. Should we call that trend "class warfare"? The super rich received the lion's share of pre-tax income, and tax policy added to their share of post-tax income.

This article does not speak to another point on which we need to be reminded. Conservatives argue that the top income groups pay more in income taxes than low income groups. How could it be otherwise? The greater their share of income, the more income they have to be taxed. The real issue is over the progressiveness of tax policy. The US tax system is only slightly progressive, and it has become less progressive since the 1980's. The regressive social security tax produces almost as much federal income as the income tax, and the largest share of income for most states is derived from the regressive sales tax.