Tax Policy In The US and Propaganda

This article provides data that argues against the propaganda being distributed by the folks who cut taxes for the super rich. They point out that the wealthy are paying more in taxes, and that the share of the tax burden paid for by the poor has decreased. What they don't tell you is why the wealthy are paying more in taxes. The answer is very simple. They have increased their share of national income so they pay more in taxes. Their share of income has grown more than their tax burden since the tax system has been made less progressive. Therefore, their share of after tax income has increased.

Comments by the uniformed that circulate around the Internet about tax policy are also full of misinformation about the large percent of Americans that don't pay any income taxes. All of their income is subject to the social security tax which is effectively around 15% because the employer share is passed on to them in the form of lower wages. The tax revenue from the social security tax is not segregated from revenues from the income tax. It goes into the same pot, and it is spent on current operations just like income tax dollars. The only difference is that the Treasury issues an IOU to the social security trust fund for the money that was "borrowed" to fund current spending. The poor also pay a larger share of their income on sales taxes. Outside of the income tax, which has become less progressive over time, most of the other taxes are regressive. That is, the share of income going to tax payments falls as income increases.