How the states suck the fairness out of America's tax system

[G_j]

this is a great article,

http://www.latimes.com/business/hiltzik/la-fi-mh-how-the-states-destroy-the-fairness-20150413-column.html

Michael Hiltzik
LOS ANGELES TIMES
michael.hiltzik​@latimes.com

Complaints by and on behalf of America's wealthy about their crushingly unfair tax burden typically reach a crescendo right about now, with the approach of April 15. They also employ highly refined cherry-picking, by referring almost exclusively to the federal income tax, which indeed is designed to be progressive (the tax rate rises as income rises).

That's deceptive, for two reasons. One is that the federal income tax system is a lot less progressive than it used to be, a trend that obviously favors the wealthy. (More on that in a moment.)

Contrary to popular belief, when all taxes are considered, the rich do not pay a disproportionately high share of taxes.
- Citizens for Tax Justice

Second, it ignores the effect of state and local taxes, which fall disproportionately on the working and middle classes. The difference is shown by the latest annual report on "Who Pays Taxes in America," released last week by Citizens for Tax Justice. (Hat tip to Josh Harkinson of Mother Jones.)

"Contrary to popular belief," CTJ finds, "when all taxes are considered, the rich do not pay a disproportionately high share of taxes."

CTJ shows that combined local, state and federal taxes produce a system that more resembles a flat tax than a progressive tax: In 2015, the top 1% will pay 32.6% of their income in taxes, while those in the 60th-80th percentile (with average income of $81,000) pay 30.4% and the next highest 10% (average income of $125,000) pay 32.1%. Overall, the bottom 99% pay 29.8% of their income in taxes, a ratio not much smaller than the top 1%.

..more..

[G_j]

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