>
>NN- One more reason why tax equality matters as much as total spending-NN
>
>----- Original Message -----
>From: "Max Sawicky" <sawicky at bellatlantic.net>
>
>-That's not what this piece demonstrates. At all.
>-In net terms the Fed income tax is still progressive,
>-the homeowners' tax preferences notwithstanding. It
>-does show how much more progressive it could be, and
>-how paltry Federal aid to education is.
>
>Who cares if rates are nominally progressive if tax deductions undercut it?
I think I mentioned this before in a similar context, but there's a Luxembourg Income Study working paper - I forget the exact cite - showing that countries with progressive tax systems have generally lower levels of social spending, so the combined effect of post-fisc income redistribution is worse. The U.S. has one of the more progressive tax systems around, but one of the worst income distributions.
Doug