Who bears the burden of federal excise taxes? Q.Who bears the burden of federal excise taxes? A.Workers, owners of capital, and households that consume a disproportionate amount of taxed items all bear the burden of federal excise taxes. Read more about Who bears the burden of federal excise taxes?
What criticisms are levied against standard distributional analysis? Q.What criticisms are levied against standard distributional analysis? A.Economists disagree on which taxes to include, how to measure tax burdens, what to assume about tax incidence, how to measure income, what period of analysis to use, and whether to include outlays in the calculations. Read more about What criticisms are levied against standard distributional analysis?
How do taxes affect income inequality? Q.How do taxes affect income inequality? A.Because high-income households pay a larger share of their income in total federal taxes than low-income households, federal taxes reduce income inequality. But federal taxes have done little to offset increasing income inequality over the past 40 years. Read more about How do taxes affect income inequality?