By Ryan Ellis
The most important tax reform metric for liberals and Democrats, besides perhaps the total level of federal taxation, is the progressivity of the tax code. They want to make sure that tax reform is not an exercise in cutting taxes for the wealthiest Americans.
It turns out the Senate GOP tax reform plans passes that metric with flying colors.
Yesterday, the Joint Committee on Taxation released a revised distribution table of the tax reform product put out by the Senate Finance Committee, controlling for the odd effects of repealing Obamacare’s individual mandate surtax. Nicole Kaeding from the Tax Foundation published it, and I’ve reproduced it below:
As expected, the chart shows that the average federal tax rate (all federal taxes paid divided by a comprehensive definition of income) declines for all classes of income earners.
What’s not expected, at least by me, is that the total share of federal taxes paid by millionaires actually increases under the Senate bill, even as the average tax rate for all income classes decline. If the Senate tax bill were to become law, the result would be a more progressive tax code than the one we have today. Millionaires would pay a bigger share of total federal taxes, which is what the Left has been saying they want all this time.
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