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?
How do IRS audits affect low-income families? Q.How do IRS audits affect low-income families? A.The IRS audits a disproportionate (but still small) share of tax returns that include EITC claims. The agency has found that average discrepancies between taxes owed and taxes paid are smaller on EITC returns than on all returns. Read more about How do IRS audits affect low-income families?
