(Mr. O'Neal submitted the following figures and exhibits:) TABLE J-3.-Percentage of incomes of each income class taken by present taxes and by various hypothetical taxes each adding $4,000,000,000 to revenue These estimates include the defense taxes of 1940. 1 G. Colm and H. Tarasov, Who Pays the Taxes? 3 15.4-percent tax on all sales except food, housing, medical care, and education. 25.5-percent increase in normal tax on personal incomes and minor adjustments in surtax rates at higher levels, new normal rate being 29.5 percent. 14.3-percent increase in normal tax rate accompanied by lowered exemptions, these being $1,000 for a married couple, $500 for a single person, and $200 for each dependent. The new normal rate would be 18.3 percent. TABLE J-4.-Total amount paid by consumer units in each income class under alternative taxes 1 Consumer units include all families and all single individuals not living in a family group. 28.9 percent tax on all sales except housing, medical care, and education. 315.4 percent tax on all sales except food, housing, medical care, and education. 425.5 percent increase in normal tax on personal incomes and minor adjustments in surtax rates at higher levels, new normal rate being 29.5 percent. 14.3 percent increase in normal tax rate accompanied by lowered exemptions, these being $1,000 for a married couple, $500 for a single person, and $200 for each dependent. The new normal rate would be 18.3 percent. TABLE J-5.-Average amounts taken from consumer units in each income group by present taxes and by alternative additional taxes ? A consumer unit is a spending unit, that is either a family, or a single individual who is not a member of any family group. 38.9 percent tax on all sales except housing, medical care, and education. 15.4 percent tax on all sales except food, housing, medical care, and education. 25.5 percent increase in normal tax on personal incomes and minor adjustments in surtax rates at higher levels, new normal rate being 29.5 percent. $14.3 percent increase in normal tax rate accompanied by lowered exemptions, these being $1,000 for a married couple, $500 for a single person, and $200 for each dependent. The new normal rate would be 18.3 percent. 7 These, including other figures in the tables, are estimates based on the assumption of a national income of $88,000,000,000. These must be the same since sales tax A, sales tax B, income tax A, and income tax B were all designed to add $4,000,000,000 to tax revenue. |