Inflated tax rates result from omitting credits, Phil Magness argues

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Mikhail Vnuchkov

21.05.2026

Inflated tax rates result from omitting credits, Phil Magness argues — Tax credit omission skews poverty data

Phil Magness asserts that Zucman’s statistical approach overstates the effective tax rates paid by low-income individuals.

According to Magness, Zucman intentionally omits the Earned Income Tax Credit and similar tax credits when calculating the tax rates for the poor. This, he contends, creates an illusion that the tax rate is approximately 10 percentage points higher than its actual value.

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Magness has previously commented on regulatory and statutory ambiguities in different sectors. He noted that the 1974 statute references "balance of payments deficits" but does not specify the applicable metric in a recent observation. Earlier this year, he also discussed conditions that may have allowed a Spirit JetBlue merger favoring JetBlue in the absence of key regulators.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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