Progressive progressivity

By Eric Lidji
Published 12:26 pm, November 8, 2007
Archived under Info Pipe

Progressivity is the name for the surcharge that increases the tax rate with the price of oil.

To make things even more complicated, though, there’s some talk in the Senate Finance Committee today about a “stair step approach” to progressivity. Sen. Charlie Huggins, R-Wasilla, said he likes the idea, which would increase the tax surcharge as the price of oil increases.

The House Resources Committee did something similar in its bill, setting several triggers where the progressive tax rate gets larger.

It’s called a stair step approach because of the way it looks on a graph.

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