User:Ddougl11/sandbox

In order to counteract regressive state and local taxes, many US states implement progressive income taxes.

Link: https://itep.sfo2.digitaloceanspaces.com/2019-Who-Pays-Taxes-in-America.pdf

APA Citation: Wamhoff, S., & Gardner, M. (2019). Who Pays Taxes in America in 2019. Institute on Taxation and Economic Policy.

"Commentators seeking to create the impression that high-income households are paying an outsized share of the nation’s taxes tend to focus their attention narrowly on the most progressive taxes. It is true that some of our revenue sources are quite progressive, including the federal personal income tax, corporate income tax and estate tax."

"State and local income taxes are much less progressive than the federal income tax, and some states have no income tax at all."

"The 2017 Tax Cuts and Jobs Act (TCJA), backed by President Trump and GOP leaders in Congress, lowered taxes for most households but most dramatically for the rich.2 As a result, America’s tax system overall is less progressive today."

1.      The United States of America does have some progressive tax revenue sources (?). For example, the federal personal income tax, corporate income tax, and estate tax are found to be quite progressive.

2.      There are forms of progressive tax in the United States. For example, ITEP found federal personal income tax, corporate income tax, and estate tax to all be progressive.

3.      Compared to federal income tax, state and local income taxes can be very regressive. The most regressive states, like state and state, have no income tax at all.

4.     President Trump’s 2017 Tax Cuts and Jobs Act, which dramatically lowered taxes for high-income households, greatly affected the tax system in the United States of America, making it less progressive than it once was.

Defining progressive tax normally begins by examining the definition of proportional tax— “everyone pays the same share of income taxes.” After this foundation is established, progressive tax is defined as a tax where “the share of income paid in taxes rises with income”. However, due to the complexity of the United States tax code, progressive tax is most often defined as when “after-tax income is more equally distributed than before tax income”.