Taxes: Income
The income tax has been the primary means of funding the federal government since 1913 when the 16th Amendment to the Constitution was adopted. It is a progressive tax on individual and corporate income, based on income levels. 43 states impose an income tax on individuals, while 47 states impose a tax on the income of corporations. Many municipalities and counties also levy income taxes on their residents.
Commentary
Cry Wolf Quotes
He is smooth and he is slick and he is a great teleprompter performer, but regardless of how convincing the President may be, this bill is still tax-and-spend, pure and simple. It will not cut the deficit. It will not create jobs. And it will not cut spending. And no matter what you say, you are not going to be able to hide the tax increases in this bill from the American people come next April 15.
Mr. Chairman, the President's budget plan which is incorporated into this budget resolution imposes higher taxes and more deficit spending. We have been told that that kind of a budget package will have an impact on the economy. Certainly I agree. However, it will be the kind of impact that this country can't absorb. It will slow economic growth, contribute to the massive Federal deficit, and increase Government spending.
The impact on job creation is going to be devastating, and the American young people in particular will suffer a fairly substantial deferment of their lives because there simply won't be jobs for the next two to three years to go around to our young graduates across the country.
It's disappointing and discouraging. The tone and tenor was often venomous, trying to pit the haves against the have-nots…[the business community now must figure out] how to participate in a system that's largely disconnected from us.
Related Laws and Rules
Evidence
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Millionaire Migration and State Taxation of Top Incomes: Evidence From A Natural Experiment
The rich did not flee New Jersey wen the state raised tax rates on top earners by 2.6 percentage points.
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Maryland Millionaires Vanish in the Face of Recession, Not Higher Taxes
Maryland's tax increases on the rich did not induce millionaire flight.
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Conservative Commentator Examines the History of Right-Wing Tax Cut Hypocrisy
Hard right-wingers fear-monger in the face of tax increases of both Republican and Democratic administations.
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Tax Cuts on the Rich Don't Spur Economic Growth
The Center for American Progress takes apart supply side myths.
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The Number of High-Income Taxpayers Increased Significantly During a Period With 10 Percent and 11 Percent Tax Rates on High-Income Earners
After California raised taxes on the rich, the number of residents in the affected tax brackets rose as well.
Backgrounders & Briefs
Taxes Not Seen as Making the Rich Flee New York
Almost everyone agrees that raising taxes on the rich does not induce mass upper-class migration.
Resources
The Center on Budget and Policy Priorities (CBPP) is a think tank focused on tax and fiscal policy. They provide in-depth analysis of state issues.
Citizens for Tax Justice is an organization that represents low and middle income citizens in the tax debates on Capitol Hill.
