[PEN-L:6674] Re: Marginal Tax Rates

["Max B. Sawicky" <maxsaw@xxxxxxxxx>]

Nathan Newman wrote:
>
> My point is that if we fail to address regressive tax policy, raising the
> minimum wage does little for a whole range of folks.

The Federal personal income tax is not regressive.  Up to the top
decile, the payroll tax isn't regressive either.

> The other reason to focus on tax policy is that taxes and the rhetoric and
> reality around it works against progressives, and for good reason as this
> argument shows.  Middle income tax payers are paying higher marginal tax
> rates than the wealthy.  In that situation, "flat taxes" along with other

It's always possible to propound individual cases where the marginal
rate for one family is lower than that for a second, lower income
family.  The real question is what is true for taxpayers as a whole,
and you haven't cited any evidence that marginal rates decline with
income at any point in the income distribution.  Evidence means
actual empirical research, not reference to the tax code in isolation.

By knocking the tax code, you appropriate the message of the Right
but only strengthen them politically.  It makes it possible for them
to play on the popular illusion that the income tax is regressive and
that under the flat tax, the rich would really pay their fair share.

MS

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Max B. Sawicky			maxsaw@xxxxxxxxx
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