Broad-Based Tax Increases Are Rare

Zach Goldfarb has a story today that points out how rare broad-based tax increases are. I posted earlier about the history of individual income tax changes at the federal level – here is a similar chart that I made that includes payroll tax changes.

As I mentioned in the article, we haven’t really seen broad-based individual tax increases in a while, most changes have been cuts rather than increases, and (by comparing this chart with the prior one, you can see that) many of the broad-based increases are from the payroll tax, which has increased from 2% in 1937 to effectively ~15% as of tomorrow and should be reformed.

taxchanges_payrollandindividualincome

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About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
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