Ones and Tooze Why the American Tax System is Such a Mess
Apr 15, 2022
The American tax system is revealed as a paradox, appearing progressive yet plagued by inefficiency and unfairness. The historical evolution of income tax sheds light on its complex roots and the ongoing debates over tax reform. A comparison with international systems reveals just how costly and time-consuming compliance has become for American taxpayers. Shifting gears, the financial intricacies of the Catholic Church come under scrutiny, from its diverse income sources to the unique challenges in assessing its true wealth.
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History of Income Tax
- Income taxes emerged relatively late due to their complex information requirements.
- They signify a monetized economy where income can be declared in currency.
Progressivity of US Income Tax
- The US income tax system is quite progressive on paper, especially for those who pay it directly from their salary.
- However, many high-income individuals avoid income tax through loopholes.
Flat Tax Movement
- The flat tax movement in the US began in the 1980s, promoted by the Hoover Institute.
- Despite some initial steps, the US has moved away from a single tax rate.