August 4, 2015

LA Times: Conservatives are Trying to Prove Income Inequality is a Myth — and Failing

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Taxes? Feldstein employs a familiar sleight-of-hand by limiting his analysis to federal taxes, which are still progressive. Factor in state and local levies, and the middle- and working classes are getting socked. The average share of family income paid in those levies was sharply regressive overall, according to the Institute on Taxation and Economic Policy. The lowest 20% of households, earning $19,000 or less, paid 10.9% of their income in state and local taxes. For the middle fifth, it was 9.4%. For the top 1%, it was only 5.4%.

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