Who Pays For An Increase in the PIT to 4% on Income From Wealth

Stephen Herzenberg, Mark Price |

Legislators are currently working to find the revenues necessary to fund the appropriations bill that passed the House and Senate this week. They are finding it difficult to agree on a proposal that raises genuine, recurring revenues in a way that does not make our already inequitable tax system more unfair. This Reports and Briefing Papers examines the impact on individual taxpayers (tax incidence) and the geographic distribution of revenue generated from a May proposal by lawmakers to raise $788 million with a higher personal income tax (PIT) on the income earned from wealth.