One of the biggest issues facing members of Congress and in the headlines is tax reform.
But from where do the tax dollars come?
Who is paying the biggest slice of the tax pie?
This new study from Pew Research paints a clear picture.
For all the talk about making sure the Middle Class reaps the lion’s share of benefit from reforming the tax code, it is not that sector of American society which pays anywhere the most of the tax burden. In fact, the Middle Class does not even contribute 5% of the haul each April.
Yet when looked at from the perspective of who has the means and stash of disposable cash to shell out in taxes, the Middle Class does come up short. A cut in the rate would be a boon for most in the mid sphere of the US economy.
Some 48% of the money sent to the government comes from individual income tax returns. Compare this to the lament about the corporate rate, reputed to be among the highest in the world, but only results in 9% of total federal revenue.
Do we need tax reform?
Should the Middle Class get priority?
Based off the percentage from corporations flowing to the government coffers, is a tax cut needed? Will the theory of “trickle down economics” produce or prove to be “voodoo economics“?
From the Cornfield, read the full study (http://www.pewresearch.org/fact-tank/2017/10/06/a-closer-look-at-who-does-and-doesnt-pay-u-s-income-tax/).
Then, answer these questions.