The craze for flat taxes

  • #51
Oltz
This is a good read with some usefull Charts in it.

Take not of the chart involving percent of taxes actually paid with lines for the 90% 10 % and 1%
http://www.taxfoundation.org/news/show/27254.html"

Also note where and when this was presented.

Hearing before the U.S. Senate Committee on Finance



May 3, 2011

Also I found this quote of use in conjunction with the table previously noted from the mid 2000's
Indeed, the OECD finds that the U.S. has the most progressive income tax system of any industrialized country. What that means is that the top 10 percent of U.S. taxpayers pay a larger share of the income tax burden than do the wealthiest decile in any other industrialized country, including traditionally "high-tax" countries such as France, Italy, and Sweden.[13]
 
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  • #52
mheslep
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The biggest flaw in the preferred liberal metric is that it doesn't account for the fact that people's station in life changes over time ...
Yes, I keep seeing posts claiming that social mobility over time is nil or decreasing in the US which contradicts numerous studies. I've posted on this before, hopefully this time I can put a stake through the notion of 'decreasing social mobility'.

From a http://www.dallasfed.org/fed/annual/1999p/ar95.pdf" [Broken]:

Univ Michigan data 14 year window, 1979-1992, sample size 3725 tracked over time.
Exhibit 4 said:
Of individuals who were in the lowest income quintile in 1975, 5.1 percent were
still there in 1991
, 14.6 percent had moved up to the second quintile, 21 percent
to the middle quintile, 30.3 percent to the fourth quintile and 29 percent to the
highest quintile. Of those in the highest quintile in 1975, 62.5 percent were still
there in 1991, while 0.9 percent had fallen all the way to the bottom fifth.

US Treasury data, 1979-1992, sample size 14,351 households.
Exhibit 7 said:
According to a study completed in 1992 by the Treasury, 85.8 percent of households in the lowest income quintile in 1979 moved up one or more quintiles by 1988. Only 14.2 percent of those in the bottom in 1979 were still there nine years later. Of households in the middle fifth, 47.3 percent moved up and 19.7 percent moved down, while in the highest fifth, 35.3 percent moved down.Over half (52.7 percent) of households in the top 1 percent in 1979 had lost that status by 1988.


2007 Treasury Study, 10 year window, 1996-2005:
"[URL [Broken] Mobility in the U.S. from 1996 to 2005
Report of the DEPARTMENT OF THE TREASURY[/URL]


Key Findings:
  • There was considerable income mobility of individuals in the U.S. economy during the 1996 through 2005 period as over half of taxpayers moved to a different income quintile over this period.
  • Roughly half of taxpayers who began in the bottom income quintile in 1996 moved up to a higher income group by 2005.
  • Among those with the very highest incomes in 1996 – the top 1/100 of 1 percent – only 25 percent remained in this group in 2005. Moreover, the median real income of these taxpayers declined over this period.
  • The degree of mobility among income groups is unchanged from the prior decade (1987 through 1996).
  • Economic growth resulted in rising incomes for most taxpayers over the period from 1996 to 2005. Median incomes of all taxpayers increased by 24 percent after adjusting for inflation. The real incomes of two-thirds of all taxpayers increased over this period. In addition, the median incomes of those initially in the lower income groups increased more than the median incomes of those initially in the higher income groups.

The data above differs from the commonly circulated statistics on income groups; here the studies track individuals over time. The studies show not only that large numbers of people move off of the bottom, but that it is also difficult to stay on top. The bottom 5th's income as a statistical group may be stagnant, but it is composed of a new group of people over time, perhaps undeterred and scrappy immigrants.

Edit: I see Vanadium addressed this topic generally yesterday
https://www.physicsforums.com/showthread.php?t=545541
 
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  • #53
Oltz
The bottom 5th's income as a statistical group may be stagnant, but it is composed of a new group of people over time, perhaps undeterred and scrappy immigrants.

The bottom also includes many Students both High School and College who only work during the summer.
Who can be anticipated to change groups as soon as they start working 12 months a year instead of 3-5 months.
 
  • #54
mheslep
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The bottom also includes many Students both High School and College who only work during the summer.
Who can be anticipated to change groups as soon as they start working 12 months a year instead of 3-5 months.
Perhaps, though at least one, if not all, of these studies tracks household income so dependent minors would not stand out.
 

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