Fun with numbers
Wednesday, Jun 19, 2019
* Centre Squaer…
That’s such a ridiculous claim.
Connecticut’s flat income tax rate was 4.5 percent from 1991 through 1995. The top rate (over $3,500 a year) remained at 4.5 percent when the progressive tax was put in place. So nobody’s taxes went up.
And, yes, the state’s poverty rate did increase, from 9.7 percent in 1995 to 11.7 percent in 1996, but how the heck do you put 70 percent of blame for that on a tax structure which didn’t increase anybody’s taxes?
The top tax rate was increased by a mere half a point to 5 percent in 2003, but, after some movement both ways, the overall poverty rate fell from its 1996 high to 8.1 percent that year, dropping again the following year to 7.9 percent.
A new top rate of 6.5 percent for heads of households earning more than $800,000 per year was instituted in 2009, during a global recession. The poverty rate that year was 9.4 percent. Illinois, with its flat tax, had a poverty rate of 13.3 percent that year.
* Also, the Census Bureau’s latest numbers show that Illinois’ poverty rate is 12.6 percent, not the 14.3 percent in the story.
Connecticut’s poverty rate is lower than Illinois, at 9.6 percent, even though they now have an income tax of 5 percent for heads of household income between $16,001 to $80K, 5.5 percent for earnings between $80K and $160K, 6 percent for income between $160,001 to $320K, 6.5 percent for income between $320,001 to $400K, 6.9 percent for income between $400,001 to $800K and 6.99 percent over that.