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Imagine that you are the economic advisor to a political candidate who is trying to decide about tax policy. She asks you to write a

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Imagine that you are the economic advisor to a political candidate who is trying to decide about tax policy. She asks you to write a PSA about her policy and why we should implement it. Think about the following before creating a thread describing how you would best advertise her tax policy.

  • The distribution of personal income (See Table 2.4 in your textbook)
  • Should U.S. taxes be adjusted to be
    • More progressive?
    • More regressive?
    • Keep the distribution the same?
  • Which U.S. taxes should be adjusted to achieve the outcome you describe?
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TABLE 2.4 Unequal Incomes The size distribution of income indicates how total income is distributed among income classes. The lowest income class of our population (the lowest fifth) gets only 3.1 percent of total income while the highest income class (the highest fifth) gets half of total income. " Income 2017 Income Average Share of Total Group (Dollars) Income Income (Percent) Highest fifth Above $127,000 $221,800 51.4 Second fifth 78,000-127,000 99,000 23.0 Third fifth 47,000-78,000 61.600 14.3 Fourth fifth 25,000-47,000 35,400 8.2 Lowest fifth 0-25,000 13,300 3.1 Source: Share of Aggregate Income Received by Each Fifth and Top 5 Percent of Households, U.S. Census Bureau, 2017

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