How are federal taxes distributed? Q.How are federal taxes distributed? A.Although enterprises (e.g., retailers, employers) are legally obligated to pay certain taxes, the burden of all taxes ultimately falls on households. Read more about How are federal taxes distributed?
How do financing methods affect the distributional analyses of tax cuts? Q.How do financing methods affect the distributional analyses of tax cuts? A.Tax cuts are financed through reductions in current outlays or higher government debt that will eventually have to be repaid. Distributional analyses omit this information as well as the effects of tax increases on current outlays and debt. Read more about How do financing methods affect the distributional analyses of tax cuts?
Do tax cuts pay for themselves? Q.Do tax cuts pay for themselves? A.At current tax rates, the direct revenue loss from cutting tax rates almost always exceeds the indirect gain from increased activity or reduced tax avoidance. Cutting tax rates can, however, partly pay for itself. How much depends on how people respond to tax changes. Read more about Do tax cuts pay for themselves?
