Comment by Marsymars
15 days ago
> Doesn't the US already have the most progressive tax system in the world?
It's arguable, but it's safe to say that it's one of the most progressive among development countries, but that's in large part a function of the comparative inequality and low tax rates to start.
> If you want more public services the tax rate would need to increase at all levels but dramatically so at the middle to low end.
Yeah, but the net effect can be an improvement in terms of inequality. See e.g. https://www.cbpp.org/research/what-do-oecd-data-really-show-...
"As a result, the latest OECD data show that while the United States has the tenth-highest level of income inequality of the 31 OECD countries examined before considering taxes and transfers, it has the fourth-highest level of inequality after considering them."
"As the OECD report notes, if two countries have identical tax schedules that include graduated marginal rates, the tax system will have a more progressive impact in the country with higher pre-tax inequality, because a larger share of that country’s income will be taxed at the top rates."
"Because of their comparatively small size and below-average progressivity, U.S. cash transfers do less to reduce inequality in household cash incomes than those in any other OECD country except Korea"
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