A Tax Plan to Turbocharge Inequality, in 3 Charts
Even if those cuts fall equally on each household (and, in reality, Republican leaders favor cuts
that fall disproportionately on the middle class and poor), the tax bill amounts to an enormous effort to increase inequality
If you’re a fan of these trends — rapidly rising inequality and stagnant middle-class incomes — you should love the bill.
It has risen so much that it’s now the largest tax
that 62 percent of American households pay — larger than the income tax, which gets much more attention.
He substantially raised taxes on the rich, while keeping the Bush tax cuts for the middle class and poor.
The middle class and poor, meanwhile, have suffered from slow-growing incomes —
and from overall tax rates that are higher today than in the mid-1960s.
The bill does cut income taxes for the middle class, but only modestly and only temporarily.
Total tax rate, combining federal, state and local taxes, by income group
This makes no sense in an economy where wealthy households have enjoyed the largest pre-tax raises.
Middle-income families face a higher rate than a half-century ago: 28.6 percent in 2014, versus 24.8 percent in 1964.
Cumulative change in income, adjusted for inflation, by income group
The second part of the story is less known.
