D.C. is all abuzz about tax reform, the first such legislation since 1986. Republicans want to reform the federal income tax, both personal (i.e. individual) and corporate. After failing to pass a repeal of ObamaCare, some think that tax reform is a must if the GOP wants to retain its majorities in Congress. Republicans have been selling their tax reform by stressing income tax rate cuts for the middle class. But the middle class already pays at a very low rate. For example, the Middle Quintile paid at an average income tax rate of just 2.6 percent in 2013. To verify that go to page 10 (pdf-14) of this June 2016 CBO report and read the first paragraph in the right column; then go to Figure 5 on page 12 and read the footnotes for methodology. Personal income taxes are already highly progressive, and have been for decades (see this chart). Republicans should not be in the business of making them even more so by exempting yet more income earners from paying income taxes. For...(Read Full Article)