Professional Documents
Culture Documents
45%
40%
35%
30%
25%
1917
1922
1927
1932
1937
1942
1947
1952
1957
1962
1967
1972
1977
1982
1987
1992
1997
2002
2007
2012
50%
Source: Piketty and Saez, 2003 updated to 2012. Series based on pre-tax cash market income including realized
capital gains and excluding government transfers. 2012 data based on preliminary statistics
20%
15%
10%
Top 1% (incomes above $394,000 in 2012)
5%
2008
2003
1998
1993
1988
1983
1978
1973
1968
1963
1958
1953
1948
1943
1938
1933
1928
1923
0%
1918
1913
25%
Source: Piketty and Saez, 2003 updated to 2012. Series based
on pre-tax cash market income including realized
capital gains and excluding government transfers. 2012 data based on preliminary statistics.
10
60%
Sweden
50%
France
40%
U.K.
30%
U.S.
,
20%
10%
0%
1870
1890
1910
1930
1950
1970
1990
Total tax revenues were less than 10% of national income in rich countries until 1900-1910; they represent between
30% and 55% of national income in 2000-2010. Sources and series: see piketty.pse.ens.fr/capital21c.
2010
1.2
Public Finance and Public Policy Jonathan Gruber Fourth Edition Copyright 2012 Worth Publishers
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Public Finance and Public Policy Jonathan Gruber Fourth Edition Copyright 2012 Worth Publishers
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Public Finance and Public Policy Jonathan Gruber Fourth Edition Copyright 2012 Worth Publishers
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Public Finance and Public Policy Jonathan Gruber Fourth Edition Copyright 2012 Worth Publishers
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Public Finance and Public Policy Jonathan Gruber Fourth Edition Copyright 2012 Worth Publishers
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Public Finance and Public Policy Jonathan Gruber Third Edition Copyright 2010 Worth Publishers
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Public Finance and Public Policy Jonathan Gruber Fourth Edition Copyright 2012 Worth Publishers
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1.2
Distribution of
Spending
The Distribution of
Federal and State
Expenditures, 1960 and
2007 This figure shows
the changing composition
of federal and state
spending over time, as a
share of total spending.
(a) For the federal
government, defense
spending has fallen and
Social Security and
health spending have
risen. (b) For the states,
the distribution has been
more constant, with a
small decline in education
and welfare spending and
a rise in health spending.
Public Finance and Public Policy Jonathan Gruber Third Edition Copyright 2010 Worth Publishers
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DISTRIBUTION OF TAXES
US Federal govt raises about 20% of GDP in taxes, State+Local
govt raises about 10% of GDP in taxes.
Main Federal taxes: (1) Individual income tax (40%), (2) payroll taxes on earnings (40%), (3) corporate tax (15%)
Main State taxes: (1) real estate property taxes (30%), (2)
sales and excise taxes (30%), (3) individual and corporate
state taxes (30%)
Key questions: who bears the burden of those taxes (tax incidence), what impact do they have on the economy?
17
1.2
Distribution of
Revenue Sources
The Distribution of Federal
and State Revenues, 1960
and 2008 This figure
shows the changing
composition of federal and
state revenue sources over
time, as a share of total
revenues. (a) At the federal
level, there has been a large
reduction in corporate and
excise tax revenues and a
rise in payroll tax revenues.
(b) For the states, there has
been a decline in property
taxes and a rise in income
taxes and federal grants.
Public Finance and Public Policy Jonathan Gruber Third Edition Copyright 2010 Worth Publishers
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REFERENCES
Jonathan Gruber,Public Finance and Public Policy, Fourth Edition, 2012
Worth Publishers, Chapter 1
National Center for Education Statistics Highlights from TIMSS 2007:
Mathematics and science achievement of US fourth-and eighth-grade students in an international context. Institute of Education Sciences, US
Department of Education, 2009.(web)
Piketty, Thomas, Capital in the 21st Century, Cambridge: Harvard University Press, 2014, Chapter 13, (web)
Piketty, Thomas and Emmanuel Saez Income Inequality in the United
States, 1913-1998, Quarterly Journal of Economics, 118(1), 2003, 1-39,
series updated to 2012 in September 2013 (web)
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