9Aug/100
Fairness, Taxes, and the Bush Oddity
I've taken a moment and cooked up some charts examining the relationship between tax rates and income equality. Here's the most relevant one. It shows the effective tax rates on the top and bottom income quintiles and their effect on income equality (1979-2006).
As the relationships clearly demonstrate, increasing the tax rate on the top quintile correlates with increased after-tax income equality, as does decreasing the rate on the bottom quintile. What's impressive is how powerful the correlation is: R-squared values are near 0.7 for both correlations. This suggests that the tax code is a very effective tool to compensate for the huge income disparities of the United States.
Interestingly, though, the data brought up some questions about Bush tax cuts in particular. You can see clearly two packets of outliers on the chart above (highlighted here); these are the post-2001 Bush tax cuts. They also showed up way outside of historical trend on a separate analysis I've run of the Laffer curve:
The puzzle is really how the Bush cuts managed to break the trend so dramatically, and the answer is in the structure. We can see that the Bush cuts lowered effective tax rates on all groups, and by doing so dramatically reduced federal revenue:
The key seems to be that the tax cuts, while they reduced revenue drastically, were structured to disproportionately benefit the nation's highest earners. What this meant was that the cuts cancelled out: the benefits to the poor were matched by even more benefits for the rich, and so the cuts did nothing to improve equality or maintain revenues.
-
http://www.getchristmastree.com artificial christmas trees kurt
-
http://www.toefltestsuccess.com/forum/viewtopic.php?f=4&t=28268 Deon Birkhimer
-
http://www.sennsi.com/forums/showthread.php?p=309861#post309861 Jefferey Koszyk
-
http://www.8wii.com/bioshock/ nintendo wii
-
http://www.moneyalerts.co.uk voucher codes for fragrance direct
-
http://www.environmentalsculpturing.com/pondswaterfalls.htm ponds and waterfalls
-
http://whomovedmytruth.com/tag/lifecell-reviews/ Clark Volkert
-
http://psychics-readings.org/ psychic tv
-
http://anti-aging-information.com/ Anti Wrinkle
-
http://blog.fishingcactus.com/index.php/2009/08/18/interview-on-9livesbe/ More Information
-
http://londonphotocopiers33.tumblr.com/post/12479293278/why-select-serviced-offices london photocopiers
-
http://www.financeland.co.uk/communications/ digital tv packages
-
http://augustcarr410.livejournal.com/565.html discount office equipment
-
http://www.discountofficesuppliesuk.co.uk/ricoh-aficio Ricoh Aficio
-
http://www.veloenfant.org/ velo enfant
-
http://www.montregps.org/ montre gps
-
http://www.k1bucharest.com/k-1-bucharest/the-toshiba-3d-tv-looking-at-a-number-of-its-features hoodia side effects
-
http://www.nationwide-appraisal.com Online Appraisal Management
-
http://www.vfcsorority.com/2011/10/09/things-to-consider-when-selecting-a-cell-phone-plan/ cell phones numbers
-
http://www.montreautomatique.fr/montre-automatique-homme/ cliquez ici
-
http://www.cardiofrequencemetre.org/ cardiofréquencemètre
-
http://www.whiteceramicwatches.net/ click here
-
http://www.whiteceramicwatch.net/ white ceramic watch
-
http://www.disquedurinterne.net/ disque dur interne
-
http://www.fourmicroonde.net/ four micro onde
-
http://astore.amazon.com/junksilverprices-20 junk silver bags
-
http://www.drugid.info Pharmacist and Pill ID Man
-
http://www.myimmigrationhelp.com/immigration-consultant-migration-agent-in-adelaide-australia canadian working visa consultant in adelaide
-
http://www.primalfly.com/blog/killing-in-the-name-of/ Industry News
-
http://pleasestuff2.insanejournal.com/391.html blog post
-
http://bankruptcyattorneybellevue.biz/ bankruptcy attorney bellevue
-
http://www.criminaldefenseattorneynashville.info/ Criminal Defense Attorney Nashville
-
http://www.plumbersuppliesuk.co.uk/heating-spares/ heating spares
-
http://www.discountofficesuppliesuk.co.uk/sharp-mx-photocopiers/ sharp mx photocopiers
-
http://www.naplesfloridarealestatex.com/ naples real estate
-
http://www.squidoo.com/acne-skin-care-21 Home Acne Treatment
-
http://www.rotarydirect.getlisted.co.nz/rx7-rx rx7 rx
-
http://www.ceramicwatch.org/ ceramicwatch.org
-
http://www.automaticwatchdirect.com/ automatic watch
-
http://www.skeletonwatchmart.com/ http://www.skeletonwatchmart.com/
-
http://www.montrehellokitty.fr/ cliquez ici
-
http://www.caissondebasse.fr/ caisson de basse
-
http://www.montrefemmeguess.fr/ guess montre femme
-
http://www.baindesoleil.net/ bain de soleil
-
http://www.customtie.co.uk/school-ties/ school ties
-
http://maidstoneplumbing.com/maidstone-plumbers/ plumber maidstone
-
http://www.fastenwandern-rheinhessen.de/the-beauty-of-celtic-jewelry/ Deciding on The correct Jewelry
-
http://www.skeletonwatchmart.com/skeleton-watches/ skeleton watches for men
-
http://photocopierskent.com/photocopiers-kent/ photocopiers kent
-
http://headphone-reviews.net/index.php Headphone Reviews
-
http://www.tentedecamping.org/ http://www.tentedecamping.org/
-
http://www.cedarlite.getlisted.co.nz/doors-auckland doors auckland
-
http://www.autoradiogps.fr/ autoradio dvd gps
-
http://www.mycoolcaravans8.com/ cool caravans
-
http://www.bottespascher.net/ bottes pas cher femme
-
http://www.glaciereelectrique.fr/ glaciere electrique
-
http://www.garminforerunner305.fr/ garmin forerunner
-
http://www.whitewatch.org/ white watch
-
http://www.friteusesanshuile.net/friteuse-sans-huile-seb/ friteuse sans huile seb actifry
-
http://www.aucklandmarine.getlisted.co.nz/nz-boats-for-sale nz boats for sale
-
http://www.reflexnumerique.org/ reflexnumerique.org
-
http://www.echelletelescopique.org/ echelle telescopique
-
http://www.culturefiends.com/culture-fiends/acne-free-review-acne-new-product-making-the-right-choice hoodia lollipops
-
http://babyphotos.tv baby photos
-
http://twoozer.com Weight Loss
-
http://entrylevelmechanicalengineeringjobs.org/ Entry Level Mechanical Engineering Jobs
-
http://www.robotmenager.org/ http://www.robotmenager.org/
-
http://www.whitewatchesdirect.com/ white watches for men
-
http://www.planchagaz.net/ John
-
http://www.pentlands.getlisted.co.nz/auckland-accommodation auckland accommodation
-
http://www.litparapluie.net/ lit parapluie
-
http://degenerativejointdisease.net/ Degenerative Joint Disease
-
http://www.tireuseabiere.net/ tireuse a biere seb
-
http://www.sacamainpascher.org/ http://www.sacamainpascher.org/
-
http://www.montresfemmes.net/ montres femmes
-
http://www.bestpricebeds.co.uk/ guest beds
-
http://www.automaticwatchdirect.com/automatic-watches/ mens automatic watches
-
http://www.gpsmoto.org/ gps moto
-
http://www.robotmultifonction.net/ robot multifonction
-
http://www.trampolineavecfilet.fr/ cliquez ici
-
http://www.drainsurgeons.getlisted.co.nz/unblocking-sink-drain unblocking sink drain
-
http://greatfultaco.com/?p=35 diamond ring
-
http://www.piscineautoportante.net/ piscine autoportante
-
http://www.e-psychic-readings.com/libra-horoscope-for-today libra horoscope for today
-
http://www.washilftgegenpickel.org/ Was hilft gegen Pickel
-
http://www.driversday.getlisted.co.nz/where-can-i-drive-a-race-car where can i drive a race car
-
http://www.telephonefixe.org/ telephone fixe
-
http://www.disquedurexternepascher.fr/ disquedurexternepascher.fr
-
http://www.casqueaudiosansfil.net/ http://www.casqueaudiosansfil.net/
-
http://www.sorbetiere.org/ sorbetiere magimix
-
http://www.telephonefixesansfil.fr/ telephone fixe sans fil
-
http://www.imprimantelasercouleur.net/ imprimante laser couleur
-
http://www.sacochehomme.org/ here
-
http://www.tablesbasses.org/ tables basses
-
http://www.exhibitgroup.getlisted.co.nz/ show display
-
http://www.itsonfire.org Your Russound Fireman
-
http://www.whitewatchesdirect.com/white-watches-for-women/ white watches for men
-
http://www.decodeurtnt.org/ decodeur tnt
-
http://www.montres-homme.org/ montres homme pas cher
-
http://www.montreautomatique.net/ http://www.montreautomatique.net/
-
http://www.christchurchglass.getlisted.co.nz glass balustrade
-
http://www.aspirateur-balai.net/ aspirateur balai
-
http://traversecityhotels.org/ hotels traverse city mi
-
http://topiphoneslots.angelfire.com/index.html jason
-
http://www.xpanda.getlisted.co.nz/screen-doors-nz screen doors nz
-
http://www.aspirateur-silencieux.fr/ aspirateur silencieux
-
http://www.legalsoundz.com Download mp3 music
-
http://www.barbecuegaz.org/ http://www.barbecuegaz.org/
-
http://www.balaivapeur.org/ balai vapeur
-
http://www.turbineaglace.net/ turbineaglace
-
http://www.jucy.getlisted.co.nz/hire-a-car-auckland hire a car auckland
-
http://www.cuiseurvapeur.org/ cuiseurvapeur.org
-
http://www.barrieredesecurite.fr/ barriere de securite
-
http://silvercoins.ag/morgan-silver-dollars/ morgan dollar
-
http://www.barbecueelectrique.org/ barbecue électrique
-
http://www.tzumii.com/triactol-the-breast-enhancement-serum-that-gets-results.html Olly
-
http://www.friteuse-sans-huile.org/ friteuse sans huile seb actifry
-
http://www.ceramicwatches.org/ ceramic watches
-
http://stunningceramicwatches.weebly.com/ watches
-
http://www.theiminsider.com/web-designer-salary web designer salary
-
http://www.glbsocial.net/blog.php?user=mervinnguyen922&blogentry_id=5628 Solar Garden Lights
-
http://www.crest.getlisted.co.nz/new-zealand-business-sale new zealand business sale
-
http://www.trampolineavecfilet.com/ trampoline avec filet
-
http://pwtourney.com/index.php/2011/11/check-out-the-new-iron-man-3/ Iron Man 3
-
http://stuff-ari.com/2011/check-out-the-new-iron-man-3/ Iron Man 3
-
http://www.siegeautobebe.net/ siege auto graco
-
http://www.montregps.org/montre-gps-garmin/ montre gps garmin
-
http://www.montregps.org/montre-gps-running/ meilleur montre gps running
-
http://www.techrentals.getlisted.co.nz/equipment-rental equipment rental
-
http://www.cafetiereexpresso.net/ cafetiere expresso
-
http://watchcontrabandonline.tumblr.com/ Watch Contraband Online
-
http://adult-cloud.com Adult Cloud Tube
-
http://www.friteuseelectrique.net/ friteuse electrique
-
http://articlemen.info/the-source-of-affordable-gas-and-electrical-power Tarif Platz
-
http://youngwomensclothing.net young womens clothing
-
http://www.trampolinepascher.net/ http://www.trampolinepascher.net/
-
http://www.brightwerks.com/story.php?id=296109 Mobile Games
-
http://www.planchaelectrique.net/ plancha electrique
-
http://www.wikiscribeit.com/index.php?title=BackAcneTreatment Severe Acne
-
http://mosjogolf.com/articles/when-is-it-not-ok-to-give-jewelry-as-a-gift- When Is It Not OK To Give Jewelry As A Gift?
-
http://granadawiki.com/index.php?title=outdoorBarStools tallOutdoorBarStools
-
http://URL Keyword 3: Free FB Likes
-
http://paysdegueret.info/forum/profile.php?id=1050609 Marco Lorenzi
-
http://porn-movies.ws/ sex
-
http://spacecoastmen.com/index.php/2011/11/check-out-the-new-iron-man-3/ Iron Man 3
-
http://www.trenkwalder-musik.de/wie-publiziere-ich-einen-pressetext/ Pressemitteilung verbreiten
-
http://www.indiatravelcity.com/index.php?title=User:VinnieBruce1601 filmy erotyczne
-
http://newportnewsvarealestates.com/green-acres-real-estate-newport-news-va-for-sale Green Acres real estate Newport News VA for Sale
-
http://wonderfulmanwonderfulyou.com/blog/prior-to-choosing-some-sort-of-weight-loss-program-you-should-check-this-out diet plans
-
http://catscanvsmri.com cat scan vs mri
-
http://digzz.com/stories/2856298/true_nutrition.html true nutrition discount code
-
http://sergionline.com/know-more-about-true-nutrition-coupon-codes/ true nutrition
-
http://www.tvrepair.biz LG Repair Man
-
http://www.militaryhonorsalute.com/shopping/electronics/getting-a-projector-for-my-home optoma pk301 pico pocket dlp projector
-
http://www.scottbmorton.com/true-nutrition-discount-code true nutrition review
-
http://classic-shimane.com/articles/personalized-jewelry-makes-a-great-gift Personalized Jewelry Makes a Great Gift
-
http://blogtext.org/citywidelocksmith/article/1148404.html Locksmith Mississauga
-
http://www.rasoirelectrique.org/ rasoir electrique homme