Emmanuel Saez on American Tax Progressivity

More

The fact that Emmanuel Saez won the John Bates Clark medal seems like a reasonably decent excuse to write one more time about tax progressivity. Saez is best known in the blogosphere for his work on inequality, but he has also written many papers on optimal tax theory and empirical tax history. Indeed, the JBC Medal commendation says his work has created a "resurgence of academic interest in taxation," and what that lacks in sexiness it might make up for in fact.

Saez has a paper called "How Progressive is the U.S. Federal Tax System?" (pdf), which seems like a plausible entry point for trying to answer a question that has come up a couple of times here -- like, I dunno, How progressive is the U.S. federal tax system?



The paper compares effective federal tax rates against two benchmarks: international and historical. According to Saez, here's what the American tax distribution looked like in 1960 (the y-axis is the rate and the x-axis is the income percentile):
taxes in 1960 saez.jpgAnd here's what that looked like in 2004:
taxes in 2004 saez.jpgAnd here's how it looked, compared to France and the UK, in 1970:
international tax rates 1970 saez.jpg And here's 2004:
international tax rates 2004 saez.jpgDraw your own conclusions! But I'd say the federal tax structure is (a) still progressive; (b) less progressive than it was 50 years ago; and (c) less progressive when compared to the UK than it was in 1970. (France is a different matter. Based on this small amount of data the French tax code actually looks kind of terrible.)

Jump to comments

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism. He was previously a fellow at The Atlantic and an editor at The Guardian. More

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism, an economics blog that was recently published in book form by Simon and Schuster. He was previously a fellow at The Atlantic and an editor at The Guardian. He is also on Twitter.
Get Today's Top Stories in Your Inbox (preview)

Video

More Video
Here's What Happens When You Light a Fire in Space


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Miami: The Next Big Start-Up City?

How the city became a center for innovation

Video

Video

A Brief History of Romantic Comedies

From The Atlantic's Chris Orr

Video

Life in 'the New Arctic'

A moving portrait of a fading landscape

Video

Video

The Rise of New York City

A fascinating look at Manhattan in the 1940s

Video

What Is Methane Hydrate?

"Flaming ice" is a vast natural energy source

Video

NASA's Time-Lapse of the Sun

Now with epic dubstep music

Video

Shaken Not Tuned: Cocktail Experiments

Can a tuning fork improve a cocktail?

Video

Video

Is He Cheating? A 1950s Guide

'That little blonde secretary from the office?’

Video

New Yorkers: Vintage Vacuum-Tube Amps

Risking electric shock to restore old amplifiers

Video

The DIY Piano-Bicycle

Everybody needs a hobby

Video

What Does It Take to Make Real Craft Gin?

Tour the Green Hat Gin distillery

Video

What Straights Can Learn From Same-Sex Couples

New insight from decades of research

Video

The End of the Mall Rat

A tribute to that pillar of teen culture

Video

The Wonderful World of Capitalism

An adorable 1950s cartoon

Video

New Yorkers: Miss New York USA

An unconventional beauty queen.

Writers

Up
Down

More in Politics

In Focus

Protests Spread Across Brazil