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Federal Income Tax Reform in the United States: How Did It Happen? What Did It Do? Where Do We Go from Here?

Federal Income Tax Reform in the United States: How Did It Happen? What Did It Do? Where Do We Go... Abstract. The 16th Amendment to the U.S. Constitution in 1913 provided the legal basis for progressive federal income taxes. They now yield revenues of about $450 billion annually. Tax base erosion eventually produced a levy in serious violation of norms of allocation efficiency, distributional equity, and macroeconomic performance. Vested private interests influenced legislators by propaganda and campaign contributions to minimize their tax burdens at the expense of less wealthy taxpayers. The result was an irrational and badly flawed tax structure. In 1981 the maximum marginal tax rate on income from property and wealth was significantly reduced along with other bracket reductions. The income tax reform movement culminated in 1984 to 1986. It expanded the base of the tax while reducing marginal rates as well as brackets, with little change in the distribution of the burden among different income groups but achieving some greater equity in tax liabilities for those with similar incomes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Economics and Sociology Wiley

Federal Income Tax Reform in the United States: How Did It Happen? What Did It Do? Where Do We Go from Here?

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References (13)

Publisher
Wiley
Copyright
Copyright © 1988 Wiley Subscription Services
ISSN
0002-9246
eISSN
1536-7150
DOI
10.1111/j.1536-7150.1988.tb02061.x
Publisher site
See Article on Publisher Site

Abstract

Abstract. The 16th Amendment to the U.S. Constitution in 1913 provided the legal basis for progressive federal income taxes. They now yield revenues of about $450 billion annually. Tax base erosion eventually produced a levy in serious violation of norms of allocation efficiency, distributional equity, and macroeconomic performance. Vested private interests influenced legislators by propaganda and campaign contributions to minimize their tax burdens at the expense of less wealthy taxpayers. The result was an irrational and badly flawed tax structure. In 1981 the maximum marginal tax rate on income from property and wealth was significantly reduced along with other bracket reductions. The income tax reform movement culminated in 1984 to 1986. It expanded the base of the tax while reducing marginal rates as well as brackets, with little change in the distribution of the burden among different income groups but achieving some greater equity in tax liabilities for those with similar incomes.

Journal

American Journal of Economics and Sociology – Wiley

Published: Jan 1, 1988

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