TABLE E-12 Simplified 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

First Quintile

5.2

0.9

−0.3

Second Quintile

10.7

4.3

−0.8

Third Quintile

16.3

10.7

0.4

Fourth Quintile

19.6

19.1

0.4

Fifth Quintile

24.3

64.8

0.5

All

20.6

100.0

0.3

Top 10 Percent

24.9

49.4

0.8

Top 5 Percent

25.1

37.8

1.3

Intermediate-1 Spending and Revenues Scenario

First Quintile

7.2

1.1

−2.4

Second Quintile

13.3

4.4

−3.7

Third Quintile

20.9

11.4

−5.1

Fourth Quintile

24.9

20.2

−6.2

Fifth Quintile

28.4

62.8

−4.8

All

24.7

100.0

−4.9

Top 10 Percent

28.5

47.0

−4.0

Top 5 Percent

28.4

35.5

−3.1

Intermediate-2 Spending and Revenues Scenario

First Quintile

6.7

1.0

−1.9

Second Quintile

12.5

4.4

−2.9

Third Quintile

19.4

11.1

−3.3

Fourth Quintile

23.0

19.7

−3.8

Fifth Quintile

27.2

63.6

−3.3

All

23.5

100.0

−3.3

Top 10 Percent

27.6

48.0

−2.7

Top 5 Percent

27.6

36.4

−2.0

High Spending and Revenues Scenario

First Quintile

7.6

1.0

−2.8

Second Quintile

14.3

4.4

−4.8

Third Quintile

22.5

11.4

−7.1

Fourth Quintile

26.9

20.3

−8.7

Fifth Quintile

30.6

62.8

−7.8

All

26.7

100.0

−7.4

Top 10 Percent

30.8

47.0

−7.0

Top 5 Percent

30.6

35.5

−6.1

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



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