{"id":1723,"date":"2017-12-05T08:00:04","date_gmt":"2017-12-05T14:00:04","guid":{"rendered":"https:\/\/thesocietypages.org\/trot\/?p=1723"},"modified":"2017-12-04T13:33:16","modified_gmt":"2017-12-04T19:33:16","slug":"why-tax-reform-matters-for-inequality","status":"publish","type":"post","link":"https:\/\/thesocietypages.org\/trot\/2017\/12\/05\/why-tax-reform-matters-for-inequality\/","title":{"rendered":"Why Tax Reform Matters for Inequality"},"content":{"rendered":"
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Photo by Phillip Ingham, Flickr CC<\/figcaption><\/figure>\n

The recent passing of the <\/span>GOP tax plan<\/span><\/a> in the both House and the Senate means that Congress will continue its frantic pace on tax reform to overhaul the tax code by the end of the year. Many legislators are worried about the bill\u2019s potential impact on working class families, and graduate students are anxious about the proposed tax on\u00a0<\/span>tuition waivers<\/span><\/a>. No one knows what the Congressional tax plan will look like if it passes both houses and becomes law, but we do know that tax policy affects the structure of social inequality in America. Here\u2019s how —\u00a0<\/span><\/p>\n

The tax code matters for what and who gets taxed. Researchers pay particular attention to the relative tax burden on various groups. The level of progressivity, or how much tax is paid by high income groups as compared to middle income groups, has shifted over time along with macroeconomic conditions such as unemployment, economic development, and budget deficits. Past tax reforms, particularly in 1986 and 2001, also shifted the proportion of taxes that come from wages and salaries as opposed to capital gains or other investments. <\/span><\/h5>\n