income taxes
This type of tax system charges higher rates to higher earners.
What is a progressive income tax?
Higher taxes reduce this type of household activity, while lower taxes increase it.
What is consumer spending?
Lower-income workers pay a larger share of their taxes through this type of deduction instead of income tax.
What are payroll taxes?
These taxes vary dramatically by state, from 0% in some states to over 9% in others.
What are sales taxes?
Corporate tax revenue has done this over the past several decades as a share of total GDP.
What is decreased?
These taxes, including Social Security and Medicare deductions, are a major funding source for the government.
What are payroll taxes?
Taxes temporarily take money out of this system before the government spends it back into society.
What is the economy?
Many tax deductions, such as mortgage interest, mainly benefit this income group.
Who are higher-income households?
States that have no income tax often raise this type of tax to compensate.
What are sales or property taxes?
High corporate taxes can reduce these key actions companies take to grow.
What are investment and hiring?
Federal income tax revenue helps fund these three major areas, including military protection.
What are defense, healthcare, and federal benefit programs?
BEA data shows that higher taxes can have this effect on economic growth.
What is slowing it down slightly?
Consumption taxes like sales tax are considered this, because they affect low-income households more.
What is regressive?
Property taxes are the main funding source for these two important local services.
What are public schools and police departments?
Disposable income goes down when this increases.
What are taxes?
According to the CBO, this group pays the majority of federal income taxes.
Who are high-income households?
Brookings states that raising taxes on top earners has only this kind of impact on overall economic growth.
What is a small effect?
This tax credit helps reduce child poverty by providing refunds to low- and middle-income families.
What is the Child Tax Credit?
These taxes placed on alcohol and tobacco both generate revenue and discourage unhealthy habits.
What are sin taxes?
Tax revenue helps maintain this long-term national condition by funding public services.
What is economic stability?
This refundable tax benefit reduces poverty for working families and increases labor force participation.
What is the Earned Income Tax Credit
Corporate tax changes heavily influence these two business decisions.
What are investment levels and business expansion?
Federal taxes usually represent this percentage range of U.S. GDP.
What is 16–19%?
State and local governments depend heavily on this pair of tax types for revenue.
What are sales taxes and property taxes?
Progressive tax systems help reduce this major social and economic challenge in the U.S.
What is income inequality?