all income groups pay taxes but the rates & types … · tax xsyae mhxindv tax reform done...

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TAX SYSTEM THE MAKE IT MORE EQUITABLE BY TREATING THE GOOD NEWS IS THAT THERE ARE MANY SOLUTIONS TO IMPROVE OUR TAX SYSTEM ECONOMIC GROWTH, TAX REFORM DONE RIGHT WOULD PROMOTE REDUCE THE COMPLEXITY & BURDEN OF COMPLIANCE, TRANSPARENCY INDIVIDUALS AND BUSINESSES & INCREASE THE SYSTEM’S IN SIMILAR CIRCUMSTANCES MORE EQUALLY IS LOWER THAN IN MOST ADVANCED ECONOMIES TOTAL TAX REVENUE (% OF GDP) CANADA 32% UNITED KINGDOM 33% GERMANY 38% ITALY 42% FRANCE 46% JAPAN 31% • HOW DOES THE TAX SYSTEM WORK? • WHAT ARE THE OPPORTUNITIES FOR REFORM? 0 % 10 % 20 % 30 % 40 % Lowest Quintile Second Quintile Middle Quintile Fourth Quintile 80–90th Percentile 90–95th Percentile 95–99th Percentile Top 1 Percent Top 0.1 Percent *A quintile is one fifth of the population 3% 8% 12% 16% 18% 20% 22% 30% 31% USA 27% OUR TAX SYSTEM IS COMPLEX, CONFUSING & INEFFICIENT MOST AMERICANS AGREE THAT THE FEDERAL GOVERNMENT COLLECTS REVENUES FROM A VARIETY OF SOURCES 2018 Total Revenues: $3,330 Billion PAYROLL TAXES INDIVIDUAL INCOME TAXES CORPORATE INCOME TAXES EXCISE TAXES OTHER ESTATE & GIFT TAXES ALL INCOME GROUPS PAY TAXES BUT THE RATES & TYPES THEY PAY ARE INCOME LEVEL TO LEARN MORE ABOUT THE POLICY OPTIONS VISIT: PGPF.ORG/TAXES TAX RATE Estate Tax Excise Tax Individual Income Tax Corporate Income Tax Payroll Tax TAX EXPENDITURES TEND TO BENEFIT HIGH-INCOME TAXPAYERS SHARE OF THE COST OF MAJOR TAX EXPENDITURES (%) 51 % Highest Quintile 18 % Fourth Quintile 13 % Middle Quintile 10 % Second Quintile 8 % Lowest Quintile INCOME LEVEL THE U.S. TAX SYSTEM IS PROGRESSIVE, WITH HIGHER-INCOME TAXPAYERS FACING HIGHER TAX RATES THE U.S. TAX BURDEN MANY ECONOMISTS BELIEVE THAT SIMPLIFYING THE TAX CODE & REDUCE THE DEFICIT EFFECTIVE FEDERAL TAX RATE BY TYPE 6 % 35 % 51 % 5 % 3 % 1 % WOULD HELP THE ECONOMY (ALSO KNOWN AS TAX BREAKS) EXEMPTIONS INCLUDE DEDUCTIONS | CREDITS & PREFERENTIAL RATES. CREATE MARKET DISTORTIONS & cost more than what the government spends on: THESE LOOPHOLES SOCIAL SECURITY MEDICARE DEFENSE BUDGETARY COST IN 2018 (DOLLARS) All Tax Expenditures Individual & Corporate Income Tax Revenues $1.5 Trillion $1.9 Trillion Defense $622 Billion $582 Billion Medicare $982 Billion Social Security

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Page 1: ALL INCOME GROUPS PAY TAXES BUT THE RATES & TYPES … · tax xsyae mhxindv tax reform done right would promote reduce the complexity & burden of compliance, tax syxae mhi individuals

T A X S Y S T E M

THE

MAKE IT MORE EQUITABLE

BY TREATING

THE GOOD NEWS IS THAT THERE ARE MANY SOLUTIONS TO IMPROVE OUR TAX SYSTEM

ECONOMIC GROWTH,

TAX REFORM DONE RIGHT WOULD PROMOTE

REDUCE THE COMPLEXITY & BURDEN OF COMPLIANCE,

TRANSPARENCY

INDIVIDUALS AND BUSINESSES &

INCREASE THE SYSTEM’S

IN SIMILAR CIRCUMSTANCES MORE EQUALLY

IS LOWER THAN IN MOST ADVANCED ECONOMIES TOTAL TAX REVENUE (% OF GDP)

CANADA

32%

UNITED KINGDOM

33%

GERMANY

38%

ITALY

42%

FRANCE

46%

JAPAN

31%

• HOW DOES THE TAX SYSTEM WORK?• WHAT ARE THE OPPORTUNITIES FOR REFORM?

0%

10%

20%

30%

40%

Lowest Quintile

Second Quintile

Middle Quintile

Fourth Quintile

80–90th Percentile

90–95th Percentile

95–99th Percentile

Top 1Percent

Top 0.1Percent

*A quintile is one fifth of the population

3%

8%

12%

16%18%

20%22%

30% 31%

USA

27%

OUR TAX SYSTEM IS COMPLEX, CONFUSING

& INEFFICIENT

MOST AMERICANS AGREE THAT

THE FEDERAL GOVERNMENT COLLECTS REVENUES FROM A VARIETY OF SOURCES2018 Total Revenues:

$3,330 Billion

PAYROLL TAXES

INDIVIDUAL INCOME TAXES

CORPORATE INCOME TAXES

EXCISE TAXES

OTHER

ESTATE & GIFT TAXES

DIFFERENTALL INCOME GROUPS PAY TAXES BUT THE RATES & TYPES THEY PAY ARE

INCOME LEVEL

TO LEARN MORE ABOUT THE POLICY OPTIONS

VISIT: PGPF.ORG/TAXES

TAX RATE

Estate Tax

ExciseTax

IndividualIncome Tax

CorporateIncome Tax

PayrollTax

TAX EXPENDITURESTEND TO BENEFITHIGH-INCOME TAXPAYERS SHARE OF THE COST OF MAJOR TAX EXPENDITURES (%)

51%

Highest Quintile

18%

Fourth Quintile

13%

Middle Quintile

10%

Second Quintile

8%

Lowest Quintile

INCOME LEVEL

THE U.S. TAX SYSTEM IS PROGRESSIVE, WITH HIGHER-INCOME TAXPAYERS

FACING HIGHER TAX RATES

THE U.S. TAX BURDEN

MANY ECONOMISTS BELIEVE THAT SIMPLIFYING THE TAX CODE

& REDUCE THE DEFICIT

EFFECTIVE FEDERAL TAX RATE BY TYPE

6%

35%

51%

5% 3%

1%

WOULD HELP THE ECONOMY

10401040

(ALSO KNOWN AS TAX BREAKS)

EXEMPTIONSINCLUDE

DEDUCTIONS|CREDITS & PREFERENTIAL RATES.

CREATE MARKET DISTORTIONS& cost more than what the government spends on:

T H E S E L O O P H O L E S

SOCIAL SECURITY MEDICAREDEFENSE

BUDGETARY COST IN 2018(DOLLARS)

All Tax Expenditures

Individual & Corporate Income Tax Revenues

$1.5 Trillion

$1.9 Trillion

Defense $622 Billion

$582 BillionMedicare

$982 BillionSocial Security