In 1940, the ratio of total federal income tax to total corporate income tax was 0.75.
Matthew
11

I don’t disagree with any of your data regarding the tax burden. However, you have to consider all the factors like the U.S. population increasing from 130 million in 1940 to 320 million today, the median household income increasing from $956 in 1940 to $55,500 today, and an effective corporate tax rate that is comparable to anywhere else in the world. The ‘redistribution of wealth’ that you refer to is, in actuality, the middle class shifting their wealth to those on social security, medicare and other mandatory spending. That alone, $2.45 trillion dollars in 2015, far exceeds the $1.5 trillion in revenue from the middle class tax burden. Even if we doubled the corporate effective tax rate (increase in revenue of $341 billion in 2015 using your data), an action that I sense both you and the author would favorably endorse, we still wouldn’t have enough revenue to cover the government’s expenditures. So clearly, increasing the tax burden on the wealthy and corporations is not going to solve the problem and would not alter the quality of life for anyone. In fact, we would have to triple the effective corporate tax rate just to make ends meet. So while we can talk about how the wealthy are keeping Americans trapped, I’d argue that government spending with huge outlays in Medicare (26% of the $3.8 trillion 2015 budget), Social Security (24%), other entitlements (15%), and military spending (16%), are what is really keeping Americans trapped.

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