Taxes and benefits narrow the gap: last year the shares of income after taxes and benefits were 43% and 6.9% respectively.
Noteworthy is the income impact of taxes: under the current system, only high earners end up with a smaller share of total income after taxes.
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For most Americans, living paycheck to paycheck, spending (after taxes) pretty much equals income (after taxes).
Comparing income before and after taxes, CBO says the tax system cut the share of income going to the top 20% by about seven percentage points in 2007, most of that coming from the top 1%.
Moreover, per capita income relative to the U.S. average declined substantially after adoption of state income taxes in all 11 states.
To say it simply: As demagogues throughout history have discovered, much to their chagrin, higher taxes reduce after tax income by an amount greater then the tax hike.
Withholdings taxes that flow daily into the U.S. Treasury show that after a December burst in income recognition to avoid higher 2013 taxes, income is not growing faster than inflation.
That income will seem even less after inflation, higher taxes and bracket creep have done their nasty work.
Inequality by market income, before taxes and benefits, plus inequality after taxes and transfers.
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The Lib Dems have committed themselves to using any money left over after meeting their spending priorities to cutting income taxes for those on middle and low incomes.
But the fourth, which is what happens to taxes and income afterward, are always an after thought.
The way the math works, after 20 years of the grantor paying the income taxes for the trust, there could be twice as much in the trust as there would be if the trust paid its own taxes, says Bernard Kent, a tax partner with PricewaterhouseCoopers in Detroit.
Only after factoring in the higher cigarette taxes themselves, and increased income taxes from healthier and presumably more productive workers, does lowering the number of smokers reduce the deficit.
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After generating an average operating income (earnings before depreciation, interest and taxes) of 10.2% of revenues during the 1997-98 season, basketball teams saw their operating margin sink to -13.9% during last year's abbreviated schedule.
So next years higher taxes in essence means U.S. after-tax income will decline next year.
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Because it's a separate entity, the corporation pays taxes at the corporate rate on all income that's left after business expenses (including salaries) are paid.
But what do you expect when the voters have been immersed in totally misleading and non-fact-based rhetoric about who pays what in taxes and what actually happened to the distribution of income tax payments after the Bush tax cuts?
Unlike Mitt Romney, who would slash taxes for those with high-incomes while raising taxes for many low- and moderate-income households, Santorum would boost after-tax incomes for the vast majority of Americans.
FORBES: The Santorum Plan: Tax Cuts For (Nearly) All And A Big Expansion Of The Defict
Higher income earners earned more during the four years after the Bush tax cuts but also disproportionately increased their already disproportionate share of taxes paid.
FORBES: After Bush Tax Cuts, Payments By Wealthy Actually Increased
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