Income Inequality: Difference between revisions
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[https://taxpolicycenter.org/briefing-book/how-do-taxes-affect-income-inequality by TAX POLICY CENTER] | [https://taxpolicycenter.org/briefing-book/how-do-taxes-affect-income-inequality by TAX POLICY CENTER] | ||
The US federal tax system mitigates income inequality. High-income households pay a larger share of their income in total federal taxes than low-income households (figure 2). State and local taxes, which are not included in this analysis, are much less progressive and some, such as sales taxes, are regressive (low-income households pay a higher share of their income in sales taxes than high-income households). | The US federal tax system mitigates income inequality. High-income households pay a larger share of their income in total federal taxes than low-income households (figure 2). State and local taxes, which are not included in this analysis, are much less progressive and some, such as sales taxes, are regressive (low-income households pay a higher share of their income in sales taxes than high-income households). | ||
=====Inequality’s drag on aggregate demand===== | |||
[https://www.epi.org/publication/inequalitys-drag-on-aggregate-demand/ by Josh Bivens and Asha Banerjee 24/5/22 Economic Policy Institute] | |||
Rising inequality has had serious economic and fiscal effects. Key among them: It has hurt economic growth. By 2018, the rise in income inequality since 1979 was reducing growth in aggregate demand by about 1.5% of GDP. | |||
