Taxes: Lower Than You Think

Federal rates are down sharply

How onerous is the federal income tax system as it applies to individuals? At first glance, the answer seems to be: very onerous indeed. Total personal tax payments as a share of household income have surged recently, for example. And despite seven revisions since 1980, the tax code is still replete with complexities and preferences that tend to encourage behavior that undermines economic efficiency.

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