A tax disclosure form
What if workers were presented with the following annual tax statement form? Would our debates on inequality and fair taxation be different?
| Tax Rate | ||
| Gross Income | 96,836 | |
| Deductions: | ||
| Inequality Tax | (57,524) | -59.4% |
| Federal Tax | (4,150) | -4.3% |
| Net | 35,162 | -63.7% |
Gross income is US GDP ($15 trillion) divided by the labor force of 154,900,000. The statement is for a median wage worker making a gross salary of $39,312. Federal income taxes are estimated by wikipedia for a worker making $40,000. The inequality tax is the adjustment needed to bring GDP per worker down to the actual wage received.
Those supporting the status quo will argue the economy needs the incentives provided by the inequality tax to function and the tax is fair since it’s determined by something they call the “market”. Perhaps. But shouldn’t workers know the total real tax rate they’re paying and the extent that’s being redistributed upwards?
Of course the form for those making more than $96,836 would show inequality income coming in. Those in this privileged tier, at the lower levels referred to as the “middle class”, tend to believe such inequality transfers are rightly due them. Obviously, I disagree.
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