Taxes
IRS at 100 PDF Print E-mail

 

How Income Taxation Built the Middle Class

Across the U.S., new progressive state legislative majorities endorsed the income tax amendment in 1910 and 1912.  Early in 1913, final ratification gave Congress a green light to add an income tax to the tax code. Eight months later Congress passed a new revenue act that featured a modest income tax of up to 7 percent on income higher than $4,000, the equivalent of $94,000 today.

john buenker and sam pizzigatiJohn Buenker and Sam Pizzigati explain that during the mid-20th century, a progressive income tax with steeply graduated tax rates raised the revenue that payed for the new programs and services that opened doors into middle-class life.  These steeply graduated rates sent the message that American society frowned on incomes that towered too high.  As a result of the progressive income tax, the U.S. became the first mass middle-class nation in the history of the world where the majority did not live in poverty.  In contrast, tax reductions in recent decades have defunded infrastructure maintenance and development as well as job training and education; eroded middle class incomes and Americans' quality of life, and increased poverty in the U.S.


Read John Buenker and Sam Pizzigati's article:  IRS at 100: How income taxation built the middle class


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Charts Show 10 Year Effect of Bush Tax Cuts PDF Print E-mail

On the 10th Anniversary of the Bush Tax Cuts, the Center for Budget and Policy Priorities assembled 5 Charts that show the wealthy gained far more from the Bush Tax Cut than working families.  The tax cuts did not spur economic growth, and the cuts were the largest contributor to the deficit. Their charts show that letting the Bush Tax Cuts expire would halt the a rise in U.S. debt over the next decade.

deficit drivers

Together with the economic downturn, the Bush tax cuts and the wars in Afghanistan and Iraq explain virtually the entire deficit over a decade. . .  The events and policies that have pushed deficits to these high levels were largely outside the Obama Administration’s control. If not for the tax cuts enacted during the presidency of George W. Bush that Congress did not pay for, the cost of the wars in Iraq and Afghanistan that were initiated during that period, and the effects of the worst economic slump since the Great Depression (including the cost of steps necessary to combat it), we would not be facing these huge deficits.


Take a look at the charts.

Last Updated on Saturday, 13 August 2011 09:14
 
How does a nation's tax rate relate to prosperity? PDF Print E-mail


Erskine Bowles and Alan Simpson, chairs of the deficit commission, cap government revenue at 21% of G.D.P.   Paul Ryan's Republican Budget restricts government revenue to 19% of GDP.  Are such caps necessary for a prosperous economy?  Prosperity for all citizens requires both a strong public sector and a strong private sector.  Actually as a percent of G.D.P., the United States has one of the lowest tax rates in the world including all levels of taxes - local, state, and federal.  The United States rate is 27.3% whereas Germany has 36.2% and Denmark has 50%.  Yet Germany is second highest in exports, and Denmark has a growing export industry and an unemployment rate much lower than the U.S.  Both countries have strong social safety nets.
 

Tax rates to provide services to citizens, in other words, do not necessarily harm the private sector.  They can enhance the private sector, for example, by lowering the cost of health care, by providing the educational investment necessary for highly skilled workers, through research later used in products sold by private corporations, and by building the private infrastructure used to transport goods. According to Our Fiscal Security, the tax rate on the top income bracket was as high as 80% during the 1960s, when the average growth rate of the economy was almost 4.5%, compared to a growth rate of around 1.7% for the past decade of historically low taxes on the wealthiest.   See how U.S. taxes compare internationally.

Last Updated on Saturday, 13 August 2011 09:28
 
The Land of Opportunity Lost PDF Print E-mail


David Morris, Vice President, Institute for Local Self Reliance

david morris"America is the richest country on earth, measured in per capita income, but the way we spend our money makes us one of the poorer," writes David Morris.  He points out that the United States is the only advanced economy that lacks guaranteed paid vacation, sick leave, and maternity leave, that fails to assure its citizens health care and provide preschool programs for its children, and that pays a small fraction of wages for such a short time to its unemployed workers.  How does European countries' shared prosperity affect their competitiveness, productivity, and trade balances?  Find out by reading Morris' article.

Last Updated on Saturday, 13 August 2011 09:24
 
Wealthy Pay Less than Average in MN Taxes PDF Print E-mail


Minnesota's most affluent residents pay a smaller share of their incomes in state and local taxes than the average MN family according to the Minnesota Department of Revenue's 2011 MN Tax Incidence Study.  Minnesota's taxes have become more regressive because the state has shifted towards using local property taxes for public services instead of state income taxes.


The average household paid 11.5% of their incomes in state and local taxes.  Comparable figures were 10.3% for households in the top 10%, people with incomes of $129,567 and up, and only 9.7% for the wealthiest 1% of households with incomes more than $429,000. 
Last Updated on Thursday, 04 August 2011 05:33
 


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MN's Leading Election System

With Secretary of State Steve Simon

 

steve simon

 

Listen to Secretary of State Steve Simon's excellent presentation on MN's outstanding election system emulated by many other states at the Think Again Brooklyns forum January 19, 2016.  Secretary Simon includes ways in which it can be improved, and he explains why it is important to vote.  He concludes with a quote from a tee shirt:  "Failure to vote is not an act of rebellion.  It is an act of surrender."

Get details on how to vote at http://mnvotes.org

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How Oregon Became the Easiest Place to Vote in the US

By Lornet Turnbull
YES! Magazine
October 8, 2016

 


In January, Oregon became the first state in the country to begin automatically registering eligible citizens to vote when they obtain or renew their driver's licenses or state IDs, completely shifting the burden of voter registration from the individual to the government. 

Read the Article

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