Clarion Ledger: ‘Tax shift’ for roads: Will it favor rich?

“Income tax reductions also fall unevenly, because many low-income households pay little or no income taxes. A plan to phase out income taxes on incomes under $18,300 proposed last year would have been more beneficial to the highest earning households. The lowest-earning 20 percent of taxpayers, making $16,000 or less, would have saved an average of $13 a year under the plan, according to an analysis by the liberal-leaning Institute on Taxation and Economic Policy. Those earning in the top 95 percent to 99 percent of households, with incomes from $156,000 to $324,000, would collect an average of $631 a year. That’s in part because high-income households are much more likely to have two people earning large salaries.”

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