Reference no: EM132243991

What would the following changes to the federal taxation system have on income inequality

1.Raise the federal marginal tax rate on income in the two highest existing income tax brackets by 2 percentage points.

2.Creating a new federal income tax bracket that would charge a 70 percent marginal tax rate on earnings above $10,000,000 in a year

3.Increase the federal payroll tax paid by employers by 1 percentage point for any worker the employer pays more than $200,000 in a calendar year.