Apologies and regards, Doug
The next major domestic policy initiative of the Trump administration and Republican Congress is expected to be tax reform. Practically everyone would agree that our Federal tax system is hopelessly and needlessly complex, inefficient and unfair. You might think that reform would be simple. But the parties are in complete opposition about the direction needed for reform. I hope that the work below can help inform the discussion of the appropriate direction for tax reform.
This post was originally published on the blog Wonky Thoughts.
Gross Domestic Income ($MM)
Individual Income Taxes
Payroll (Social Insurance) Tax
Corporate Income Tax
Corporate Payroll Tax
Capital Gains Tax
Dividends & Interest Tax
- All individual income taxes, minus 9.2 % for capital gains, and 4.75% for dividends and Interest.
- Employee payroll taxes (Social Security and Medicare)
- Federal excise taxes (alcohol, tobacco, fuel and health insurance).
- Business income taxes
- Corporate payroll taxes
- Individual capital gains taxes
- Individual dividends and interest taxes
- “Other” taxes, representing diverse sources such as mineral royalty payments
- The 2016 component percentages of individual taxes (wages, capital gains, dividends and interest) were assumed to apply to 2015 taxes.
- The percentage of taxes paid on capital gains was applied to dividends and interest.
- Federal Excise taxes were entirely allocated to Wages.