Tax-Benefit System

The tax-benefit system is composed of both taxes and benefits. To successfully improve the tax-benefit system we must include all major sub-systems that impact the effective tax rate, the propensity to work and the propensity to save and then invest. The Corporate Income Tax, Personal Income Tax, Capital Gains Tax, FICA Payroll Tax, Inheritance Tax, progressive rates, credits, deductions, exemptions, direct transfers and indirect transfers all impact the effective tax rates and the propensity to work and save. This means we have to address not just income and payroll taxes, we must also address Medicare, Medicaid, the ACA, Social Security, WIC, SNAP, etc. All of these sub-systems also impact economic growth, jobs and wage gains.