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
Taxes and the wealthy

Will Higher Taxes on the Rich Kill Jobs?

December 01, 2010

Cry Wolf Quotes

When a man has accumulated a sum of money within the law, that is to say, in the legally correct way, the people no longer have any right to share in the earnings resulting from the accumulation.

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John Davison Rockefeller.
07/27/1909 | Full Details | Law(s): Tax: Income

[A tax on incomes exceeding $4,000 will drive] rich men to go abroad and live.

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Letter to the editor, New York World by Ward McAllister, a prominent figure in high society.
01/30/1894 | Full Details | Law(s): Tax: Income

Clearly, this is a job-killer in the short-run. The revenues forecast for this budget will not materialize; the costs of this budget will be greater than what is forecast. The deficit will be worse, and it is not a good omen for the American economy. 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.

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Rep. Dick Armey, CNN

Like this two-sided coin, the Clinton budget bill has two sides. One side is a tax increase-the largest tax increase in the world, and most Americans know that. But the other side of this coin-of the Clinton budget plan is something else, and it's not spending cuts; it's spending increases: $165 billion in new domestic spending, adding $1.2 trillion to the deficit, growing Government by 20 percent over the next 4 years, all charged to our children and grandchildren. Mr. Speaker, with most coins it is: Heads, you win; tails, you lose; but with the Clinton budget bill it is: Tax increases, the American people lose; spending increases, the American people lose. There is something new about this coin, but there is absolutely nothing new about the Clinton proposal. It is tax and spend: Heads, you lose; tails, you lose.

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Spencer T. Bachus, III (R-SC), Congressional Record.

Evidence

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.