Four Myths about American Taxes
Why is tax reform so hard? There are many reasons, of course, but one big reason is the persistence of several myths about American taxes. For example, many people seem to believe that the United States (1) is a low-income-tax country, (2) has a relatively modest effective tax rate on corporate investment, (3) could raise a massive amount of new revenue by hiking the top federal rate on individual income, and (4) has a less progressive tax structure than most nations in Western Europe. Each of those assertions is either deceptive or just plain wrong.