Taxes: Income
The income tax has been the primary means of funding the federal government since 1913 when the 16th Amendment to the Constitution was adopted. It is a progressive tax on individual and corporate income, based on income levels. 43 states impose an income tax on individuals, while 47 states impose a tax on the income of corporations. Many municipalities and counties also levy income taxes on their residents.
Commentary
Cry Wolf Quotes
Taxes will go up. The economy will sputter along. Dreams will be put off and all this for the hollow promise of deficit reduction and magical theories of lower interest rates. Like so many of the President's past promises, deficit reduction will be another cruel hoax. Tax revenues will lag because the economy will fall. Government spending will increase at least another $300 billion a year. And the deficit will reach another record high.
I protest against this betrayal of our ancient principals. I protest against this treason to our faith, to our platform, to our traditions, to our heroes. I protest against partial laws, whether they be intended to favor the few or the many. I demand for all men the same equality before the law which they enjoy in the sight of God….I demand now, as I have always demanded, one citizenship, one country, one law, one Democratic faith, one common plane of equality for all the people, without distinction of wealth, of birth, or race, or of creed!
It's idiotic to think about increasing taxes at a time like this….this is going to result in the largest tax increase in U.S. history. And again, it's idiotic….But Democrats are poised now to cause this largest tax increase in U.S. history. It's a tax increase of $3.8 trillion over the next 10 years, and it will have an effect on every single American who pays an income tax. Small businesses especially will be hit hardest....
[This is] Class legislation and attempts of the majority to spoliate private property [that] would ultimately wreck the American republic.
Related Laws and Rules
Evidence
-
Millionaire Migration and State Taxation of Top Incomes: Evidence From A Natural Experiment
The rich did not flee New Jersey wen the state raised tax rates on top earners by 2.6 percentage points.
-
Maryland Millionaires Vanish in the Face of Recession, Not Higher Taxes
Maryland's tax increases on the rich did not induce millionaire flight.
-
Conservative Commentator Examines the History of Right-Wing Tax Cut Hypocrisy
Hard right-wingers fear-monger in the face of tax increases of both Republican and Democratic administations.
-
Tax Cuts on the Rich Don't Spur Economic Growth
The Center for American Progress takes apart supply side myths.
-
The Number of High-Income Taxpayers Increased Significantly During a Period With 10 Percent and 11 Percent Tax Rates on High-Income Earners
After California raised taxes on the rich, the number of residents in the affected tax brackets rose as well.
Backgrounders & Briefs
Taxes Not Seen as Making the Rich Flee New York
Almost everyone agrees that raising taxes on the rich does not induce mass upper-class migration.
Resources
The Center on Budget and Policy Priorities (CBPP) is a think tank focused on tax and fiscal policy. They provide in-depth analysis of state issues.
Citizens for Tax Justice is an organization that represents low and middle income citizens in the tax debates on Capitol Hill.
