TABLE E-18 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2080

 

Average Tax Rate (percentage)

Percentage Share of Tax Burden

Percentage Change in After-Tax Incomea

Low Spending and Revenues Scenario

First Quintile

9.2

1.3

−2.6

Second Quintile

15.7

4.7

−2.3

Third Quintile

22.0

12.9

−1.7

Fourth Quintile

24.0

21.3

−1.0

Fifth Quintile

23.4

59.8

2.7

All

22.4

100.0

0.8

Top 10 Percent

23.0

45.8

3.5

Top 5 Percent

22.4

35.3

3.6

Intermediate-1 Spending and Revenues Scenario

First Quintile

11.8

1.5

−5.4

Second Quintile

19.6

5.3

−6.9

Third Quintile

26.0

13.7

−6.7

Fourth Quintile

27.5

21.9

−5.4

Fifth Quintile

25.0

57.5

0.5

All

24.9

100.0

−2.4

Top 10 Percent

24.2

43.5

1.9

Top 5 Percent

23.2

33.0

2.5

Intermediate-2 Spending and Revenues Scenario

First Quintile

12.3

1.4

−5.9

Second Quintile

20.6

5.0

−8.0

Third Quintile

28.0

13.3

−9.3

Fourth Quintile

30.0

21.6

−8.8

Fifth Quintile

28.2

58.6

−3.8

All

27.6

100.0

−5.9

Top 10 Percent

27.5

44.6

−2.6

Top 5 Percent

26.6

34.1

−2.0

High Spending and Revenues Scenario

First Quintile

15.4

1.4

−9.2

Second Quintile

26.2

5.1

−14.5

Third Quintile

35.0

13.3

−18.1

Fourth Quintile

37.2

21.4

−18.1

Fifth Quintile

35.4

58.8

−13.5

All

34.6

100.0

−15.0

Top 10 Percent

34.8

45.1

−12.3

Top 5 Percent

33.9

34.7

−11.7

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



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