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

42 Tax Features 1 (1998)

handle is hein.tera/taxfeaturs0042 and id is 1 raw text is: TAX' FOUNDATION TAX FEATURES www. taxfoundation. org January 1998 Volume 42, Number I Newest Study Shows '97 Tax Cuts Came Too Late to Stem Rising Burden on Family = One Income 40% 1- Congress's 1997 tax cut apparently came too late to shield manyAmerican families from yet another annual rise in their total tax burden. According to a new study by the Tax Chart 1: Taxes as a Percentage of Income for Median One- and Two-Income Families - Two Income 0\ \0 o\o o\o o\o C\o (ob b NQ . _ i I 35%L \4\Q 3% rc 1955 1965 1975 1985 1995 1997e Source. Tax Foundation. Foundation, federal, state, and local taxes will claim 38.2 percent of the income of a median two-income family (earning $54,910), up from 37.3 percent in 1996. The median one-income family's tax burden is projected to be 35.6 percent of its income this year, up from 35.5% in 1996. The latest Tax Foundation analysis shows that the current level of taxes for the median two-income family is nearing the historic highwater mark established before the massive 1981 tax cuts. Taxes took a 38.9 percent bite out of the median two-income family's total budget in 1981. The new study - Special Report No. 74, titled Tax Burden on American Families Rises Again - confirms that with increased prosperity comes increased taxes. In terms of inflation-adjusted dollars, the $22,521 total tax burden that a median dual-earner family will bear this year will be the highest ever. As the comparison in Chart 2 demonstrates, two tax trends are primarily responsible for the jump in tax burden over recent decades - the upward trend in state and local taxation and the increase in the federal payroll tax used to fund social insurance programs: - State and local taxes combined have, as a share of the family budget, grown over five Median Family continued on page 2 !Tax Reform and Tax Relief Will Continue to be the Top Priority in 1998 Rep. BillArcher (R-Texas) 4-5

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