Friday, March 26, 2010

Chart of the Day

From the American Action Forum:

source: American Action Forum, Taxes and Tax Policy at 4 (Feb. 2010)

As the AAF explains:
[T]he figure above shows effective marginal tax rates for a married couple with two children. The effective marginal tax rate is about 50 percent for families making as little as $22,000 -- for each additional dollar earned the couple gets a net benefit of only 50 cents. This is as high as the effective rate on very high-income individuals, and clearly presents a strong disincentive for families in this income category to work and save more. Hence, proposals to extend the refundable tax credits have the effect of prolonging an anti-growth tax policy.
As Assistant Village Idiot said:
The accomplishments of those who struggle on despite difficulty are diminished by redistribution. If you rescue everyone up to $X, you have slapped the person who has sweated, risked, and deprived himself to make $X+1. All his effort and sacrifice -- worth only $1.

1 comment:

suek said...

My guess is that as much of the economy as possible - and granting that given the intrusion of the Feds into our information banks, the possible is reducing constantly - is going to go under the table. We may be moving towards an all cash economy.