Taxes: Income

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

Chamber of Commerce, Wrong Again

May 19, 2011

The California Chamber of Commerce released its hit list of so-called "job killer" bills. Like every year, they oppose every proposal to protect consumers, workers and the environment from irresponsible business practices, or raise revenues to fund public services, or support middle and working class families. 

They were wrong before and they are wrong now.

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Taxes and the wealthy

Will Higher Taxes on the Rich Kill Jobs?

December 01, 2010

Will raising income taxes on the rich hurt or help the economy? That's the key question that Congress will be debating as they consider whether to extend the tax cuts enacted by President George W. Bush in 2001 and 2003, which are set to expire at the end of the year.

As he pledged during the 2008 campaign, President Obama, along with most Congressional Democrats, wants to maintain the Bush 2001 tax cuts for the middle class but allow them to expire for high income Americans. Business groups and Republicans are, predictably, claiming that such a plan would "kill jobs," harm small businesses, and deepen the recession. They are crying wolf, but they repeat their misleading warnings so often -- and the media report them as if they were true -- that many Americans believe them.

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Cry Wolf Quotes

[A federal income tax would be an invitation to D.C.] to invade its territory, to oust its jurisdiction and to establish a Federal dominion [in Virginia]. A hand from Washington will be stretched out and placed upon every man’s business. The eye of the Federal inspector will be in every man’s counting house.

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Speaker of the Virginia House of Delegates, Richard E. Byrd.
01/01/1911 | Full Details | Law(s): Tax: Income

Most economists believe that they [rich people] would spend the money and stimulate the economy.

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Gretchen Carlson, co-host of Fox & Friends.
09/16/2010 | Full Details | Law(s): Economic Growth and Tax Relief Reconciliation Act of 2001, Jobs and Growth Tax Relief Reconciliation Act of 2003

The present assault upon capital is but the beginning. It will be but the stepping stone to others, larger and more sweeping, till our political contests will become a war of the poor against the rich; a war constantly growing in intensity and bitterness.

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Justice Stephen Field, concurs with the majority opinion against the income tax.
05/20/1894 | Full Details | Law(s): Tax: Income

The Obama Tax Plan Would Eliminate Hundreds of Thousands of Jobs Each Year….In other words, for Americans who are unemployed now, their prospects of employment would worsen under the Obama tax plan.

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The Heritage Foundation's study “Obama Tax Hikes: The Economic and Fiscal Effects".
09/20/2010 | Full Details | Law(s): Economic Growth and Tax Relief Reconciliation Act of 2001, Jobs and Growth Tax Relief Reconciliation Act of 2003
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Related Laws and Rules

Evidence

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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. 

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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.

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