Regressive taxation hits wages at source while capital income escapes through loopholes

Evidence

The same principle applies to the other side of the fiscal austerity coin, state revenues: it is not about whether the state increases taxes, but about whom it increases taxes for. Today, most governments enact regressive tax reforms, cutting taxes for those with capital income (and providing generous tax loopholes) while increasing taxes for those with labor income, who have little room for evasion given that they are taxed directly from their paychecks. — Clara E. Mattei, Escape from Capitalism, 146

Categorization

• XREF: Parallel to the spending-side argument in [144]-[145]; both halves of the austerity coin point the same direction — toward the 1 percent. — connects to: Regressive taxation and spending cuts serve the same class-confiscating function — Clara E. Mattei, Escape from Capitalism, 150; Austerity reduces taxes on capital while raising taxes on labor income — Clara E. Mattei, Escape from Capitalism, 146