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