Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

The U.S. Tax Code is Highly Progressive, According to New NCPA Study
  • USA - English


News provided by

National Center For Policy Analysis

Feb 02, 2016, 17:00 ET

Share this article

Share toX

Share this article

Share toX


(PRWEB) February 02, 2016 -- There has been much debate over whether the rich pay their "fair share" under the current U.S. tax system. But a new study, funded in part by the National Center for Policy Analysis, found that the current tax code is highly progressive — those who earn and have more pay a far greater share — when measured in terms of the lifetime tax burden for U.S. households. Also, spending among different resource groups is much more equally distributed than wealth, according to the study.

This study is the first conceptually appropriate and empirically accurate analysis of U.S. inequality and its mitigation via government policies.

Post this

The study was authored by economist Laurence Kotlikoff of Boston University, Alan Auerbach of the University of California-Berkley and Daryl Koehler of Economic Security Planning, Inc.

The reduction in spending inequality is due to two things – poorer households receiving much more in benefit programs (such as food stamps, Temporary Assistance for Needy Families, Medicaid) than they pay in taxes, and richer households paying much more in taxes than they receive in benefits.

According to Professor Kotlikoff, “This study is, arguably, the first conceptually appropriate and empirically accurate analysis of U.S. inequality and its mitigation via government policies. The study shows that the U.S. fiscal system is highly progressive and, as a result, true economic inequality, as measured by remaining lifetime spending power, is far smaller than commonly believed. This does not mean the remaining inequality is either small or benign or that it should not be further reduced. That’s a matter for the public and Congress to decide. But it’s important to get the facts right. One other major fact that this study presents is that in taking from some and giving to others, our fiscal system with its close to 40 major uncoordinated fiscal programs, is leaving far too many people, be they rich or poor, with far too little incentive, at the margin, to work."

Among the study's results:
     • For the top 1 percent or earners ages 40 to 49, their remaining lifetime net tax rate (taxes paid minus government benefits received as a share of remaining lifetime resources) is 45 percent. For the bottom 20 percent in the same age group, their remaining lifetime net tax rate is -34 percent, meaning they will receive more in transfer benefits than they pay in taxes. Remaining lifetime resources is the sum of a household’s net wealth plus its human wealth (the present value of all its projected future labor earnings).
     • Those aged 70 to 79 in the top 1 percent of wealth have a remaining lifetime net tax rate of 26.8 percent. In contrast, those in the lowest 20 percent have a negative average remaining net tax rate of -695 percent!

However, the complicated system of separately designed taxes and benefits leads to median marginal net tax rates that are significantly high for different wealth levels. The net marginal tax rate is the rate paid on the last dollar of income earned minus government benefits. For example:

     • Among the poorest 20 percent of the 30 to 39 year olds, the average remaining lifetime net tax rate is –16.8 percent, whereas their median lifetime marginal net tax rate is 45 percent.
     • There is also enormous variation in net marginal tax rates across households with the same or similar wealth. For 50 to 59 year olds in the third 20 percent of earners, the median remaining lifetime net tax rate is 44.2 percent. But the minimum marginal rate is –5.3 percent, and the maximum rate is 262.3 percent.

Their findings indicate that, while U.S. spending is certainly unequal, it is far less unequal than one would presume from looking at wealth inequality across all age groups, let alone within one age group. Among 40 year olds, for example, the richest 1 percent account for 19 percent of their cohort’s wealth, but only 9 percent of the cohort’s total remaining lifetime spending.

The paper also strongly criticizes conventional income-based calculations of inequality and tax rates as well as mixing together the young, who have yet to pay most of their taxes, with the old, who have already paid most of their taxes. This is standard practice in Washington by all government agencies as well as leading think tanks, like the Tax Policy Center. This new study shows that conventional analysis is systematically misrepresenting the degree of U.S. inequality, fiscal progressivity, and work disincentives.

U.S. Inequality, Fiscal Progressivity, and Work Disincentives: An Intragenerational Accounting: http://goo.gl/pA1nEj

The National Center for Policy Analysis Tax Analysis Center analyzes tax and entitlement systems and reform proposals using computer models developed by economists at Boston University, the Beacon Hill Institute at Suffolk University and the Private Enterprise Research Center at Texas A&M University.

The NCPA is a 501(c)(3) nonprofit, nonpartisan public policy research organization headquartered in Dallas with offices in Washington, D.C. The NCPA depends solely on the contributions of individuals, corporations and foundations that advocate private sector solutions to public policy problems. All contributions are tax-deductible.

Catherine Daniell, National Center For Policy Analysis, http://www.ncpa.org, +1 (972) 308-6479, [email protected]

Modal title

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.