US TAX BURDEN Growing heavier for many families

Tax Burden Money Owed Government Pie Chart PaymentUS TAX BURDEN Growing heavier for many families

Despite all the talk about cutting taxes, the median-income family’s total federal, state and local tax burden rose again this year, says the Tax Foundation, a nonprofit research group in Washington. Senior economist Claire M. Hintz cites two main factors: growth of federal payroll taxes and general increases in state and local taxes. During 1997, total state and local taxes represented nearly 13% of the median family’s income, the report says. That was a record and up from 11.5% in 1985. Individual federal payroll taxes, which pay for such programs as Social Security and Medicare, totaled 7.3% of median family income, well above the 2% level in the mid-1960s. As if to add insult to injury this increase is not factored into the Consumer Price Index.

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