25.9.21

WHAT IS WRONG WITH THIS PICTURE?

A recent Urban Milwaukee post asserts "the wealthy are not paying their fair share of the costs of government."  It's unclear how they determine what a "fair share" is.  The post includes a figure suggesting that the total tax burden is roughly proportional to income, which makes sense given that lower-income people devote a greater share of their income to personal consumption and incur sales and excise taxes accordingly.  There's a pattern of lower-income people receiving more in benefits than they pay in taxes, irresepective of the nature of their welfare state.



Nowhere in the article, though, does the author suggest what the "fair share" of taxes among high-income earners ought to be.  I should be grateful, I suppose, for a pass at an incidence analysis.

No comments: