TABLE E-2 Statutory Tax Rates and Other Features Under the Simplified Tax Structure

 

2012

2020

2030

2040

2050

2060

2070

2080

(A) Low Spending and Revenues Scenario

Simplified Personal Income Tax

Regular Tax Rates (Percentages)

Lower Bracket

10.0

9.4

8.8

8.4

8.1

7.9

7.7

7.5

Upper Bracket

25.0

23.4

22.0

20.9

20.2

19.8

19.2

18.8

Bracket Thresholds (Current Dollars)

Lower Bracket

36,550

41,300

51,050

63,450

78,900

98,075

121,925

151,550

Upper Bracket

73,100

82,600

102,100

126,900

157,800

196,150

243,850

303,100

Standard Deduction (Current Dollars)

 

8,500

9,600

11,900

14,800

18,400

22,850

28,450

35,350

 

17,000

19,200

23,800

29,600

36,800

45,700

56,900

70,700

Capital Gains and Qualified Dividend Tax Rate (Percentages)

 

15.0

14.0

13.2

12.6

12.1

11.9

11.5

11.3

VAT (if added; there is no current U.S. VAT)

 

NA

NA

NA

NA

NA

NA

NA

NA

(B) Intermediate-1 Spending and Revenues Scenario

Simplified Personal Income Tax

Regular Tax Rates (Percentages)

Lower Bracket

10.0

10.3

9.6

8.7

7.8

7.5

7.5

7.4

Upper Bracket

25.0

25.9

23.9

21.7

19.5

18.8

18.6

18.4

Bracket Thresholds (Current Dollars)

Lower Bracket

25,625

28,950

35,775

44,475

55,300

68,750

85,450

106,225

Upper Bracket

51,250

57,900

71,550

88,950

110,600

137,500

170,900

212,450

Standard Deduction (Current Dollars)

 

5,950

6,750

8,350

10,350

12,900

16,000

19,900

24,750

 

11,900

13,500

16,700

20,700

25,800

32,000

39,800

49,500



The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement