December 13, 2016

Kentucky Center for Economic Policy: Those at the Top Would Get More Tax Breaks, Investments Would Suffer from Shift to Consumption Taxes

ITEP Work in Action

“The table below shows the impact, by income group, of two such hypothetical shifts. Notice that even when the shift is seemingly minor – one penny less on the dollar for the top income tax rate and one penny more on the sales tax rate – the top one percent of households get a $5,396 tax cut on average while the bottom 60 percent of Kentuckians pay more, with the highest percentage increase in taxes going to the poorest 20 percent of Kentuckians. The average tax cut for the top one percent grows to nearly $8,000 if 1/4 of the income tax is replaced with a higher sales tax.”

Read full report here.