In my post from Nov. 1, A close look at the federal tax burden of corporations and individuals, I provide details about the large increase in federal income and corporate tax revenue after the 2001 and 2003 tax cuts. The piece also displays how the federal tax burden moved from corporations, to individuals and back to corporations between 1995, 2001 and 2007 respectively.
One of my readers mentioned the population increase between 1995 and 2007. An increase in population alone could result in these changes. More people working and companies doing better – both very good things – could explain the increase. We could be pessimistic and say the rich got way richer and the poor and middle class were left behind.
After a review of additional IRS tax data, it’s clear there was a shift. Most everyone improved their status.