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One jarring chart shows how taxes on workers have essentially replaced those on corporations | Markets Insider

(MARKETS INSIDER) December 14, 2019

Workers are a key pillar of the US economy. The payroll taxes that the government collects from their wages sustains two critical programs that benefit millions of Americans: Social Security and Medicare.

However, they’re now shouldering more of the tax burden compared to corporations.

Recent research from Emmanuel Saez and Gabriel Zucman — two progressive economists at the University of California, Berkeley — shows that payroll taxes on workers now makes up a significantly larger portion of national income compared to corporate taxes, which have steadily been on the decline for decades.

Payroll taxes made up 7.8% of national income in 2018, compared to 0.9% for corporate ones — the widest gulf in almost two decades.

Workers are a key pillar of the US economy. The payroll taxes that the government collects from their wages sustains two critical programs that benefit tens of millions of Americans: Social Security and Medicare.

However, they’re now shouldering more of the tax burden compared to corporations.

Recent research from Emmanuel Saez and Gabriel Zucman — two progressive economists at the University of California, Berkeley — shows that payroll taxes on workers now makes up a significantly larger portion of national income compared to corporate taxes, which has steadily been on the decline for decades.

Payroll taxes made up 7.8% of national income in 2018, compared to 0.9% for corporate ones — the widest gulf in almost two decades. This is shown in the chart below.

Source: https://markets.businessinsider.com/news/stocks/chart-showing-taxes-on-workers-have-higher-corporations-paying-less-2019-12-1028762171