Or how you do the math determines the results

Reader comment on: Less Unequal Than Claimed

Submitted by lyle (United States), Jan 10, 2018 15:56

There is an old saying figures don't lie but liars figure. This piece suggests that in one or the other camp there are some liars doing a lot of figuring. It is just like the issue of the recent tax cut where the basis was the absolute number of dollars of reduced taxes, not the percentage cut in taxes. In general below 150 k taxable income (after deductions) the tax due is about 13% less due to the rate reductions. Also the change from exemptions to tax credits for children under 17 helps the bottom of the income distribution far more than the top at the 10% rate the 2000 credit is equivalent to a 20k exemption and at 37% it is equivalent to a 5400 exemption. (Before the 400k income phase out of the credit begins).

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