, Columnist
Two Taxpayers, Two Definitions of 'Progressive'
Do the new rates favor higher earners? It depends on how you read the numbers.
Simple arithmetic.
Photographer: Daniel AckerLiberals are saying that the tax legislation is tilted toward the rich. Conservatives are denying it. In large part this isn’t an argument about what the numbers are; it’s a disagreement about how to characterize the same numbers.
That disagreement might be easier to see by looking at a simple example: a government with two taxpayers. One makes $100,000 and the other $50,000. They live under a progressive tax code: The high earner pays 20 percent, and the low earner 10 percent. The government finds a way to economize, and cuts both bills by 10 percent.