TABLE E-4 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2020

 

Average Tax Rate (percentage)

Percentage Share of Tax Burden

Percentage Change in After-Tax Incomea

Low Spending and Revenues Scenario, Which Is Current Law

First Quintile

4.9

0.9

NA

Second Quintile

9.9

4.0

NA

Third Quintile

16.6

10.8

NA

Fourth Quintile

19.9

19.2

NA

Fifth Quintile

24.7

65.1

NA

All

20.8

100.0

NA

Top 10 Percent

25.5

50.0

NA

Top 5 Percent

26.1

38.8

NA

Intermediate-1 Spending and Revenues Scenario

First Quintile

6.2

0.9

−1.4

Second Quintile

12.0

4.0

−2.3

Third Quintile

19.9

10.7

−4.0

Fourth Quintile

24.0

19.1

−5.1

Fifth Quintile

30.1

65.3

−7.1

All

25.3

100.0

−5.6

Top 10 Percent

31.1

50.2

−7.5

Top 5 Percent

31.8

39.0

−7.7

Intermediate-2 Spending and Revenues Scenario

First Quintile

6.1

0.9

−1.3

Second Quintile

11.6

4.0

−1.8

Third Quintile

19.0

10.8

−2.9

Fourth Quintile

22.7

19.1

−3.5

Fifth Quintile

28.3

65.0

−4.7

All

23.8

100.0

−3.8

Top 10 Percent

29.2

50.0

−4.9

Top 5 Percent

29.8

38.8

−5.1

High Spending and Revenues Scenario

First Quintile

6.6

0.9

−1.8

Second Quintile

12.8

3.9

−3.2

Third Quintile

21.3

10.4

−5.6

Fourth Quintile

25.9

18.8

−7.4

Fifth Quintile

33.3

66.0

−11.4

All

27.6

100.0

−8.6

Top 10 Percent

34.6

66.0

−12.2

Top 5 Percent

35.4

39.7

−12.6

NOTE: NA = not applicable.

aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced.



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