- Nov 22, 2003
- Reaction score
1/11 NYTimes editorial, my question is the purpose of the tax system. Seems to me that no matter how you stretch it, 'general welfare' in meaning income theft from one group to give to another is the reason for the tax system?
Tax Cuts and Consequences
The tax system in the United States is supposed to mitigate inequality. But a recent report by Congresss budget agency provides fresh evidence that Bush-era tax cuts have done more to reinforce inequality than to redress it.
The agency found that in 2004, the latest year for which comprehensive data were available, the top 1 percent of households pocketed 14 percent of total after-tax income in the United States, up from 12.2 percent in 2003. That increase, the third largest in one year since the agency started keeping track in 1979, works out to an extra $128 billion. And yet despite that hefty gain, the effective federal tax rate of the top 1 percent decreased slightly.