Exempting the Working Class: Simplicity versus Cyclicality
Who pays federal income taxes in America? Under Senator Cory Booker’s (D-NJ) recently proposed Keep Your Pay Act, the answer could be millions fewer individuals than today. Married couples earning less than $75,000 would see substantial tax relief, with some receiving net payments from the government (i.e., a negative effective income tax rate) due to refundable credits. The…