About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Timothy Vermeer, et al., America's Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions 1 (2023)

handle is hein.taxfoundation/amapvet0001 and id is 1 raw text is: America's Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions Timothy Vermeer Alex Durante Erica York Jared Walczak Senior Policy Analyst Economist Senior Economist, Research Manager Vice President of State Projects The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global level We are a 501(cx3) nonprofit organization. ©2022 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 Key Findings The U.S. system of taxes and transfers is highly progressive. Measuring comprehensive income, inclusive of market-based income and government taxes and transfers, illustrates the total fiscal burden created by a fiscal system. Income transfer programs amplify the U.S. federal tax system's progressivity, move the state and local system from moderate regressivity to moderate progressivity, and result in a highly progressive fiscal system overall. The lowest quintile experienced a combined tax and transfer rate of negative 127.0 percent, meaning that for each dollar they earned, they received an additional $1.27 from the government, netting transfers (gains) and taxes (losses), while the top quintile had a rate of positive 30.7 percent, meaning on net they paid just under $0.31 for every dollar earned. The top quintile funded 90.1 percent, or $1.6 trillion, of all government transfers in 2019. For each dollar of taxes paid, the top quintile received $0.11 in gross government transfers. Government transfers account for 59 percent of the bottom quintile's comprehensive income. For each dollar of taxes paid by the bottom quintile, they received $6.17 in gross government transfers. Before transfers, total effective fiscal incidence rates were generally progressive: 24.6 percent for the bottom quintile, 24.7 percent for the middle quintile, and 34.5 percent for the top quintile. After transfers, total effective fiscal incidence rates were markedly progressive: 10.1 percent for the bottom quintile, 22.4 percent for the middle quintile, and 41.4 percent for the top quintile. 202.464.6200 taxfoundation.org Mar. 2023

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most