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?
Are federal taxes progressive? Q.Are federal taxes progressive? A.Overall, yes. But that’s not the case for each tax. Read more about Are federal taxes progressive?
