WhyNot?

Most ppl will like this

Category: Taxes
Responses: 6 (2 in support, 2 neutral, 2 in opposition)
Number of views: 399
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Our tax structure isn't as progressive as some say it is: that is true at fairly high and low incomes, but not in the middle.

For example, various tax breaks are available to and commonly used by the middle class (e.g. breaks for homeownership, retirement benefits, and health insurance), but not available and seldom used by the working class.

Some quick calculations suggest that the effective income tax rate in my state is substantially higher on working class taxpayers (those who lack these tax breaks) than on middle class taxpayers of higher income and much greater assets. (And other state taxes tend to be downright regressive.) This also often occurs with federal taxes.

Calculate the effective tax rate for a household at median income, and set that as the maximum effective tax rate on households at or below median income.

ftlpdx, Feb 02 2004

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That's actually what they attempted to do in the beginning. Things don't always work according to plan, however.

Jadxia, Aug 29 2006

I don't follow. I will say this, though: complexity gives crooks & politicians all the more oppertunity to take advantage.

wizard1961, Mar 31 2007