Cato Ad Infinito

Phil Gasper ptrg at sirius.com
Fri Aug 14 17:59:37 PDT 1998



> I'm not taking a stand in favor of sales taxes over income taxes.
>I'm just suggesting that the difference is not substantial.
> James in Philly

You would be wrong. A 1996 study by Citizens for Tax Justice and the Institute on Taxation & Economic Policy "found that the kind of taxes that a state imposes on its citizens makes a huge difference.

*State and local income taxes are typically progressive. On average, poor families pay only a fourth the effective income tax rate that the richest families pay, and middle-income families pay about three-fifths the effective rate on the well-to-do.

* Property taxes, including both taxes on individuals and business taxes, are usually somewhat regressive.

*Sales and excise taxes are very regressive. On average, poor families pay more than six times as high a share of their income in these consumption taxes as do the best-off families, and middle-income families pay at four times the rate of the wealthy."

The full report can be found at http://www.ctj.org/html/whopays.htm.

Phil Gasper ptrg at sirius.com 415-522-1895



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