Appendix E
Revenue Options and Their Implications
This appendix supplements Chapter 8 on revenue options. The Tax Policy Center (TPC) of the Urban Institute and Brookings Institution used specified assumptions provided by the study committee to model both the illustrative current tax and simplified tax structures over a nearly 75-year period. TPC estimated microdynamic taxpayer responses to specific tax changes. In addition, and also under the guidance of the study committee, TPC developed and applied appropriate policy specifications and behavioral assumptions to estimate microdynamic responses to the change in the corporate income tax under the simplified tax structure to estimate the effects of changes in the corporation income tax. Because TPC’s is a micro-simulation model, it took gross domestic product (GDP) as fixed; that is, TPC did not attempt to estimate the macroeconomic effects of tax changes, such as effects on investment and incomes. The results of these simulations are presented below. (For additional details on the analytic methods, see note 26 in Chapter 8.)
We use “current tax structure” as a shorthand for the current overall personal income tax regime of six brackets, an Alternative Minimum Tax (AMT), and many tax expenditures. Over time, and for the three scenarios with higher levels of revenues and spending than the “low” one, the various statutory tax rates and bracket thresholds are adjusted to raise the revenue needed. Because of the deemed maximum rates, the “high” current tax structure scenario must add a value-added tax (VAT). This analysis is summarized in Table 8-1 in Chapter 8 and the discussion that follows it; details are presented in the tables below.
By contrast, we use “simplified tax structure” to mean two tax brackets
and very few tax expenditures. This analysis, too, is summarized in Table 8-1 and the discussion that follows it. Over time and for the four scenarios, the rates, bracket thresholds, and standard deduction are adjusted to the revenue needs.
Table E-1 details the implementation of the current tax structure under the four scenarios and for selected years from 2012 through 2080. Because the low revenue scenario retains the rates and other features of the personal income tax under current law, the rates shown in Table E-1(A) are constant over time. Table E-2 similarly details the implementation of the simplified tax structure.
Tables E-3 through E-18 project the distributional implications of the revenue options for the federal tax system as a whole, by income quintiles and for the top 10 and 5 percent groups of the income distribution. Tables E-3 through E-10 pertain to the current tax structure for selected years; Tables E-11 through E-18 are for the simplified tax structure for the same years.
These tables show average combined federal tax rates, each group’s percentage share of the combined federal tax burden, and percentage changes in after-tax income (again for federal taxes combined) compared to current-law taxation for that year. The combination of federal taxes includes the personal income tax (net of refundable credits); the corporate income tax allocated to individuals; the payroll taxes for Medicare and Social Security levied on both workers (and—as allocated to individuals—on employers); the estate tax similarly allocated; and an allocation of any VAT (Burman et al., 2008c; Rohaly et al., 2005). The average tax rate for the population or any subgroup is the average combined federal tax as a percentage of its average income. Comparing across groups, average tax rates are also indicators of the distribution of the combined tax burden.
TABLE E-1 Statutory Tax Rates Under the Current Tax Structure, as Percentages
Rate |
2012 |
2020 |
2030 |
2040 |
2050 |
2060 |
2070 |
2080 |
(A) Low Spending and Revenues Scenario |
||||||||
Personal Income Taxa |
||||||||
Regular Tax |
||||||||
10 |
10.0 |
10.0 |
10.0 |
10.0 |
10.0 |
10.0 |
10.0 |
10.0 |
15 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
25 |
25.0 |
25.0 |
25.0 |
25.0 |
25.0 |
25.0 |
25.0 |
25.0 |
28 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
33 |
33.0 |
33.0 |
33.0 |
33.0 |
33.0 |
33.0 |
33.0 |
33.0 |
35 |
35.0 |
35.0 |
35.0 |
35.0 |
35.0 |
35.0 |
35.0 |
35.0 |
Capital Gains and Qualified Dividends |
||||||||
15 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
15.0 |
Alternative Minimum Tax |
||||||||
26 |
26.0 |
26.0 |
26.0 |
26.0 |
26.0 |
26.0 |
26.0 |
26.0 |
28 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
28.0 |
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 |
||||||||
Personal Income Taxa |
||||||||
Regular Tax |
||||||||
10 |
11.6 |
12.7 |
12.4 |
11.6 |
10.6 |
10.3 |
10.5 |
10.4 |
15 |
17.4 |
19.1 |
18.6 |
17.4 |
15.9 |
15.4 |
15.7 |
15.7 |
25 |
29.1 |
31.8 |
31.0 |
29.0 |
26.5 |
25.7 |
26.1 |
26.1 |
28 |
32.5 |
35.6 |
34.7 |
32.5 |
29.7 |
28.8 |
29.3 |
29.2 |
33 |
38.4 |
42.0 |
40.9 |
38.3 |
35.0 |
34.0 |
34.5 |
34.5 |
35 |
40.7 |
44.5 |
43.4 |
40.6 |
37.2 |
36.0 |
36.6 |
36.6 |
Rate |
2012 |
2020 |
2030 |
2040 |
2050 |
2060 |
2070 |
2080 |
Capital Gains and Qualified Dividends |
||||||||
15 |
17.4 |
19.1 |
18.6 |
17.4 |
15.9 |
15.4 |
15.7 |
15.7 |
Alternative Minimum Tax |
||||||||
26 |
30.2 |
33.1 |
32.2 |
30.1 |
27.6 |
26.8 |
27.2 |
27.2 |
28 |
32.5 |
35.6 |
34.7 |
32.5 |
29.7 |
28.8 |
29.3 |
29.2 |
VAT (if added; there is no current U.S. VAT) |
||||||||
|
NA |
NA |
NA |
NA |
NA |
NA |
NA |
NA |
(C) Intermediate-2 Spending and Revenues Scenario |
||||||||
Personal Income Taxa |
||||||||
Regular Tax |
||||||||
10 |
10.9 |
11.4 |
11.7 |
11.9 |
11.7 |
11.8 |
12.1 |
12.2 |
15 |
16.4 |
17.1 |
17.6 |
17.9 |
17.5 |
17.7 |
18.2 |
18.2 |
25 |
27.3 |
28.5 |
29.4 |
29.8 |
29.2 |
29.4 |
30.3 |
30.4 |
28 |
30.5 |
31.9 |
32.9 |
33.3 |
32.8 |
33.0 |
33.9 |
34.0 |
33 |
36.0 |
37.7 |
38.8 |
39.3 |
38.6 |
38.8 |
40.0 |
40.1 |
35 |
38.2 |
39.9 |
41.1 |
41.7 |
40.9 |
41.2 |
42.4 |
42.5 |
Capital Gains and Qualified Dividends |
||||||||
15 |
16.4 |
17.1 |
17.6 |
17.9 |
17.5 |
17.7 |
18.2 |
18.2 |
Alternative Minimum Tax |
||||||||
26 |
28.3 |
29.7 |
30.5 |
31.0 |
30.4 |
30.6 |
31.5 |
31.6 |
28 |
30.5 |
31.9 |
32.9 |
33.3 |
32.8 |
33.0 |
33.9 |
34.0 |
VAT (if added; there is no current U.S. VAT) |
||||||||
|
NA |
NA |
NA |
NA |
NA |
NA |
NA |
NA |
(D) High Spending and Revenues Scenario |
||||||||
Personal Income Taxa |
||||||||
Regular Tax |
||||||||
10 |
12.2 |
14.3 |
14.3 |
14.3 |
14.3 |
14.3 |
14.3 |
14.3 |
15 |
18.3 |
21.4 |
21.4 |
21.4 |
21.4 |
21.4 |
21.4 |
21.4 |
25 |
30.5 |
35.7 |
35.7 |
35.7 |
35.7 |
35.7 |
35.7 |
35.7 |
28 |
34.2 |
40.0 |
40.0 |
40.0 |
40.0 |
40.0 |
40.0 |
40.0 |
33 |
40.3 |
47.1 |
47.1 |
47.1 |
47.1 |
47.1 |
47.1 |
47.1 |
35 |
42.8 |
50.0 |
50.0 |
50.0 |
50.0 |
50.0 |
50.0 |
50.0 |
Capital Gains and Qualified Dividends |
||||||||
15 |
18.3 |
21.4 |
21.4 |
21.4 |
21.4 |
21.4 |
21.4 |
21.4 |
Alternative Minimum Tax |
||||||||
26 |
31.8 |
37.1 |
37.1 |
37.1 |
37.1 |
37.1 |
37.1 |
37.1 |
28 |
34.2 |
40.0 |
40.0 |
40.0 |
40.0 |
40.0 |
40.0 |
40.0 |
VAT (if added; there is no current U.S. VAT) |
||||||||
|
NA |
0.9 |
5.2 |
7.7 |
8.1 |
9.7 |
12.9 |
14.6 |
NOTE: NA = not applicable. aCurrent law is in left-most column. |
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 |
Capital Gains and Qualified Dividend Tax Rate (Percentages) |
||||||||
|
15.0 |
15.5 |
14.3 |
13.0 |
11.7 |
11.3 |
11.2 |
11.0 |
VAT (if added; there is no current U.S. VAT) |
||||||||
|
NA |
NA |
NA |
NA |
NA |
NA |
NA |
NA |
(C) Intermediate-2 Spending and Revenues Scenario |
||||||||
Simplified Personal Income Tax |
||||||||
Regular Tax Rates (Percentages) |
||||||||
Lower Bracket |
10.0 |
9.9 |
9.5 |
9.3 |
8.9 |
8.8 |
8.8 |
8.7 |
Upper Bracket |
25.0 |
24.6 |
23.9 |
23.2 |
22.2 |
22.0 |
22.0 |
21.8 |
Bracket Thresholds (Current Dollars) |
||||||||
Lower Bracket |
29,950 |
33,850 |
41,825 |
52,000 |
64,625 |
80,350 |
99,900 |
124,175 |
Upper Bracket |
59,900 |
67,700 |
83,650 |
104,000 |
129,250 |
160,700 |
199,800 |
248,350 |
Standard Deduction (Current Dollars) |
||||||||
|
6,950 |
7,900 |
9,750 |
12,100 |
15,050 |
18,750 |
23,300 |
28,950 |
|
13,900 |
15,800 |
19,500 |
24,200 |
30,100 |
37,500 |
46,600 |
57,900 |
Capital Gains and Qualified Dividend Tax Rate (Percentages) |
||||||||
|
15.0 |
14.8 |
14.3 |
13.9 |
13.3 |
13.2 |
13.2 |
13.1 |
VAT (if added; there is no current U.S. VAT) |
||||||||
|
NA |
NA |
NA |
NA |
NA |
NA |
NA |
NA |
(D) High Spending and Revenues Scenario |
||||||||
Simplified Personal Income Tax |
||||||||
Regular Tax Rates (Percentages) |
||||||||
Lower Bracket |
10.0 |
11.1 |
10.5 |
10.2 |
10.2 |
10.3 |
9.7 |
11.5 |
Upper Bracket |
25.0 |
27.7 |
26.3 |
25.6 |
25.1 |
25.7 |
24.4 |
28.7 |
Bracket Thresholds (Current Dollars) |
||||||||
Lower Bracket |
22,475 |
25,400 |
31,400 |
39,025 |
48,525 |
60,325 |
75,000 |
93,225 |
Upper Bracket |
44,950 |
50,800 |
62,800 |
78,050 |
97,050 |
120,650 |
150,000 |
186,450 |
TABLE E-3 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2012
|
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 |
4.6 |
0.8 |
NA |
Second Quintile |
10.3 |
4.2 |
NA |
Third Quintile |
16.3 |
10.9 |
NA |
Fourth Quintile |
19.1 |
18.3 |
NA |
Fifth Quintile |
25.0 |
65.7 |
NA |
All |
20.7 |
100.0 |
NA |
Top 10 Percent |
26.1 |
51.6 |
NA |
Top 5 Percent |
27.0 |
41.2 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
5.1 |
0.8 |
−0.5 |
Second Quintile |
11.2 |
4.1 |
−1.1 |
Third Quintile |
17.8 |
10.8 |
−1.8 |
Fourth Quintile |
21.0 |
18.2 |
−2.3 |
Fifth Quintile |
27.8 |
66.0 |
−3.7 |
All |
22.9 |
100.0 |
−2.8 |
Top 10 Percent |
29.0 |
51.9 |
−4.0 |
Top 5 Percent |
30.1 |
41.5 |
−4.2 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
5.1 |
0.9 |
−0.5 |
Second Quintile |
11.0 |
4.2 |
−0.8 |
Third Quintile |
17.3 |
10.9 |
−1.3 |
Fourth Quintile |
20.4 |
18.2 |
−1.6 |
Fifth Quintile |
26.7 |
65.7 |
−2.3 |
All |
22.1 |
100.0 |
−1.8 |
Top 10 Percent |
27.9 |
51.6 |
−2.4 |
Top 5 Percent |
28.9 |
41.2 |
−2.5 |
High Spending and Revenues Scenario |
|||
First Quintile |
5.2 |
0.8 |
−0.6 |
Second Quintile |
11.4 |
4.1 |
−1.3 |
Third Quintile |
18.1 |
10.7 |
−2.2 |
Fourth Quintile |
21.6 |
18.1 |
−3.0 |
Fifth Quintile |
28.7 |
66.2 |
−4.9 |
All |
23.6 |
100.0 |
−3.6 |
Top 10 Percent |
30.0 |
52.1 |
−5.3 |
Top 5 Percent |
31.2 |
41.7 |
−5.7 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
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. |
TABLE E-5 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2030
|
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 |
5.4 |
1.0 |
NA |
Second Quintile |
10.5 |
4.1 |
NA |
Third Quintile |
17.3 |
10.8 |
NA |
Fourth Quintile |
20.8 |
19.6 |
NA |
Fifth Quintile |
25.5 |
64.5 |
NA |
All |
21.5 |
100.0 |
NA |
Top 10 Percent |
26.4 |
49.7 |
NA |
Top 5 Percent |
27.0 |
38.5 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
7.2 |
1.0 |
−1.9 |
Second Quintile |
13.1 |
4.2 |
−2.9 |
Third Quintile |
21.3 |
10.9 |
−4.8 |
Fourth Quintile |
25.5 |
19.6 |
−5.9 |
Fifth Quintile |
31.1 |
64.2 |
−7.5 |
All |
26.3 |
100.0 |
−6.1 |
Top 10 Percent |
32.1 |
49.4 |
−7.8 |
Top 5 Percent |
32.7 |
38.2 |
−7.9 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
7.3 |
1.1 |
−2.0 |
Second Quintile |
13.0 |
4.2 |
−2.8 |
Third Quintile |
21.0 |
10.9 |
−4.4 |
Fourth Quintile |
25.0 |
19.6 |
−5.3 |
Fifth Quintile |
30.4 |
64.1 |
−6.5 |
All |
25.8 |
100.0 |
−5.4 |
Top 10 Percent |
27.7 |
49.3 |
−6.7 |
Top 5 Percent |
28.3 |
38.1 |
−6.8 |
High Spending and Revenues Scenario |
|||
First Quintile |
8.7 |
1.1 |
−3.5 |
Second Quintile |
15.0 |
4.2 |
−5.1 |
Third Quintile |
24.2 |
10.7 |
−8.3 |
Fourth Quintile |
29.0 |
19.3 |
−10.3 |
Fifth Quintile |
36.1 |
64.6 |
−14.1 |
All |
30.3 |
100.0 |
−11.2 |
Top 10 Percent |
37.4 |
64.6 |
−14.9 |
Top 5 Percent |
38.2 |
38.7 |
−15.3 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-6 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2040
|
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 |
6.0 |
1.0 |
NA |
Second Quintile |
11.2 |
4.2 |
NA |
Third Quintile |
17.8 |
10.5 |
NA |
Fourth Quintile |
21.8 |
19.5 |
NA |
Fifth Quintile |
25.2 |
64.7 |
NA |
All |
21.8 |
100.0 |
NA |
Top 10 Percent |
25.8 |
50.3 |
NA |
Top 5 Percent |
26.1 |
39.0 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
7.9 |
1.2 |
−2.0 |
Second Quintile |
13.7 |
4.3 |
−2.8 |
Third Quintile |
21.4 |
10.7 |
−4.4 |
Fourth Quintile |
26.1 |
19.7 |
−5.5 |
Fifth Quintile |
29.5 |
64.1 |
−5.8 |
All |
25.8 |
100.0 |
−5.1 |
Top 10 Percent |
30.1 |
49.5 |
−5.7 |
Top 5 Percent |
30.3 |
38.3 |
−5.6 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
8.0 |
1.1 |
−2.2 |
Second Quintile |
13.9 |
4.3 |
−3.1 |
Third Quintile |
21.8 |
10.6 |
−4.8 |
Fourth Quintile |
26.5 |
19.6 |
−6.1 |
Fifth Quintile |
30.4 |
64.3 |
−6.8 |
All |
26.4 |
100.0 |
−5.9 |
Top 10 Percent |
31.0 |
49.8 |
−6.9 |
Top 5 Percent |
31.2 |
38.6 |
−6.9 |
High Spending and Revenues Scenario |
|||
First Quintile |
10.0 |
1.2 |
−4.3 |
Second Quintile |
16.5 |
4.3 |
−6.0 |
Third Quintile |
25.7 |
10.5 |
−9.5 |
Fourth Quintile |
31.3 |
19.3 |
−12.1 |
Fifth Quintile |
36.5 |
64.7 |
−15.0 |
All |
31.5 |
100.0 |
−12.4 |
Top 10 Percent |
37.4 |
50.3 |
−15.5 |
Top 5 Percent |
37.7 |
39.0 |
−15.7 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-7 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2050
|
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 |
7.0 |
1.2 |
NA |
Second Quintile |
11.8 |
4.2 |
NA |
Third Quintile |
18.2 |
10.5 |
NA |
Fourth Quintile |
22.3 |
19.3 |
NA |
Fifth Quintile |
25.0 |
64.8 |
NA |
All |
22.0 |
100.0 |
NA |
Top 10 Percent |
25.4 |
50.8 |
NA |
Top 5 Percent |
25.3 |
39.3 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
9.0 |
1.3 |
−2.2 |
Second Quintile |
14.1 |
4.4 |
−2.6 |
Third Quintile |
21.1 |
10.8 |
−3.5 |
Fourth Quintile |
25.6 |
19.7 |
−4.2 |
Fifth Quintile |
27.6 |
63.7 |
−3.5 |
All |
24.8 |
100.0 |
−3.5 |
Top 10 Percent |
27.8 |
49.5 |
−3.2 |
Top 5 Percent |
27.5 |
38.1 |
−3.0 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
9.1 |
1.3 |
−2.3 |
Second Quintile |
14.5 |
4.3 |
−3.1 |
Third Quintile |
22.0 |
10.6 |
−4.6 |
Fourth Quintile |
26.9 |
19.5 |
−5.9 |
Fifth Quintile |
29.7 |
64.3 |
−6.2 |
All |
26.3 |
100.0 |
−5.5 |
Top 10 Percent |
30.0 |
50.3 |
−6.2 |
Top 5 Percent |
29.8 |
38.8 |
−6.0 |
High Spending and Revenues Scenario |
|||
First Quintile |
11.5 |
1.3 |
−4.8 |
Second Quintile |
17.4 |
4.2 |
−6.3 |
Third Quintile |
26.3 |
10.4 |
−9.8 |
Fourth Quintile |
32.1 |
19.2 |
−12.6 |
Fifth Quintile |
36.2 |
64.8 |
−15.0 |
All |
31.9 |
100.0 |
−12.7 |
Top 10 Percent |
36.5 |
64.8 |
−16.0 |
Top 5 Percent |
37.9 |
39.4 |
−16.2 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-8 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2060
|
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 |
7.4 |
1.1 |
NA |
Second Quintile |
12.8 |
4.3 |
NA |
Third Quintile |
19.5 |
11.3 |
NA |
Fourth Quintile |
23.0 |
19.7 |
NA |
Fifth Quintile |
25.2 |
63.5 |
NA |
All |
22.5 |
100.0 |
NA |
Top 10 Percent |
25.4 |
49.9 |
NA |
Top 5 Percent |
26.0 |
38.7 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
9.3 |
1.3 |
−2.0 |
Second Quintile |
15.0 |
4.5 |
−2.5 |
Third Quintile |
22.1 |
11.7 |
−3.3 |
Fourth Quintile |
25.8 |
20.1 |
−3.7 |
Fifth Quintile |
27.2 |
62.3 |
−2.6 |
All |
24.8 |
100.0 |
−2.9 |
Top 10 Percent |
27.8 |
48.5 |
−3.2 |
Top 5 Percent |
28.2 |
37.3 |
−3.0 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
9.6 |
1.2 |
−2.4 |
Second Quintile |
15.8 |
4.4 |
−3.4 |
Third Quintile |
23.7 |
11.5 |
−5.2 |
Fourth Quintile |
27.9 |
19.8 |
−6.4 |
Fifth Quintile |
30.1 |
63.1 |
−6.6 |
All |
27.1 |
100.0 |
−8.6 |
Top 10 Percent |
30.6 |
49.4 |
−7.0 |
Top 5 Percent |
31.3 |
38.2 |
−7.2 |
High Spending and Revenues Scenario |
|||
First Quintile |
12.5 |
1.3 |
−5.6 |
Second Quintile |
19.3 |
4.4 |
−7.5 |
Third Quintile |
28.7 |
11.3 |
−11.5 |
Fourth Quintile |
33.8 |
19.6 |
−14.1 |
Fifth Quintile |
37.0 |
63.3 |
−15.8 |
All |
33.2 |
100.0 |
−13.8 |
Top 10 Percent |
37.8 |
63.3 |
−16.8 |
Top 5 Percent |
39.0 |
38.5 |
−16.7 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-9 Current Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2070
|
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 |
6.9 |
1.1 |
NA |
Second Quintile |
13.6 |
4.3 |
NA |
Third Quintile |
20.1 |
11.7 |
NA |
Fourth Quintile |
23.0 |
19.9 |
NA |
Fifth Quintile |
25.2 |
63.0 |
NA |
All |
22.7 |
100.0 |
NA |
Top 10 Percent |
25.4 |
49.5 |
NA |
Top 5 Percent |
25.1 |
38.0 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
8.6 |
1.2 |
−1.8 |
Second Quintile |
16.0 |
4.6 |
−2.7 |
Third Quintile |
23.0 |
12.0 |
−3.6 |
Fourth Quintile |
26.0 |
20.3 |
−3.9 |
Fifth Quintile |
27.5 |
61.9 |
−3.0 |
All |
25.2 |
100.0 |
−3.2 |
Top 10 Percent |
27.5 |
48.2 |
−2.8 |
Top 5 Percent |
27.0 |
36.8 |
−2.5 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
9.1 |
1.1 |
−2.4 |
Second Quintile |
17.2 |
4.4 |
−4.1 |
Third Quintile |
25.1 |
11.8 |
−6.3 |
Fourth Quintile |
28.6 |
20.1 |
−7.3 |
Fifth Quintile |
30.8 |
62.5 |
−7.5 |
All |
28.0 |
100.0 |
−6.8 |
Top 10 Percent |
31.0 |
48.9 |
−7.5 |
Top 5 Percent |
30.5 |
37.5 |
−7.2 |
High Spending and Revenues Scenario |
|||
First Quintile |
12.5 |
1.3 |
−6.0 |
Second Quintile |
21.2 |
4.5 |
−8.9 |
Third Quintile |
30.5 |
11.7 |
−13.0 |
Fourth Quintile |
34.6 |
19.8 |
−15.0 |
Fifth Quintile |
37.8 |
62.6 |
−16.8 |
All |
34.2 |
100.0 |
−14.9 |
Top 10 Percent |
35.2 |
49.2 |
−17.0 |
Top 5 Percent |
37.7 |
37.8 |
−16.7 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-10 Current 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, Which Is Current Law |
|||
First Quintile |
6.8 |
0.9 |
NA |
Second Quintile |
13.7 |
4.0 |
NA |
Third Quintile |
20.7 |
11.8 |
NA |
Fourth Quintile |
23.3 |
20.1 |
NA |
Fifth Quintile |
25.4 |
63.2 |
NA |
All |
23.1 |
100.0 |
NA |
Top 10 Percent |
25.6 |
49.7 |
NA |
Top 5 Percent |
25.1 |
38.5 |
NA |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
8.5 |
1.0 |
−1.8 |
Second Quintile |
16.2 |
4.3 |
−2.9 |
Third Quintile |
23.8 |
12.1 |
−3.9 |
Fourth Quintile |
26.4 |
20.5 |
−4.1 |
Fifth Quintile |
27.7 |
62.0 |
−3.1 |
All |
25.6 |
100.0 |
−3.4 |
Top 10 Percent |
27.7 |
48.4 |
−2.9 |
Top 5 Percent |
27.0 |
37.2 |
−2.5 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
9.0 |
1.0 |
−2.3 |
Second Quintile |
17.3 |
4.1 |
−4.3 |
Third Quintile |
26.0 |
11.9 |
−6.7 |
Fourth Quintile |
29.1 |
20.3 |
−7.6 |
Fifth Quintile |
31.2 |
62.6 |
−7.8 |
All |
28.5 |
100.0 |
−7.1 |
Top 10 Percent |
31.3 |
49.1 |
−7.7 |
Top 5 Percent |
30.6 |
37.9 |
−7.3 |
High Spending and Revenues Scenario |
|||
First Quintile |
13.3 |
1.2 |
−7.0 |
Second Quintile |
22.2 |
4.2 |
−9.9 |
Third Quintile |
32.1 |
11.8 |
−14.4 |
Fourth Quintile |
35.9 |
20.1 |
−16.4 |
Fifth Quintile |
38.8 |
62.6 |
−18.0 |
All |
35.6 |
100.0 |
−16.3 |
Top 10 Percent |
39.1 |
49.2 |
−18.1 |
Top 5 Percent |
38.3 |
38.1 |
−17.6 |
NOTE: NA = not applicable. aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-11 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2012
|
Average Tax Rate (percentage) |
Percentage Share of Tax Burden |
Percentage Change in After-Tax Incomea |
Low Spending and Revenues Scenario |
|||
First Quintile |
4.5 |
0.8 |
0.1 |
Second Quintile |
10.2 |
4.2 |
0.1 |
Third Quintile |
15.7 |
10.6 |
0.7 |
Fourth Quintile |
18.6 |
17.9 |
0.7 |
Fifth Quintile |
25.1 |
66.4 |
−0.1 |
All |
20.6 |
100.0 |
0.2 |
Top 10 Percent |
26.2 |
52.2 |
−0.2 |
Top 5 Percent |
26.9 |
41.2 |
0.2 |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
5.2 |
0.9 |
−0.6 |
Second Quintile |
11.1 |
4.2 |
−0.9 |
Third Quintile |
17.8 |
11.1 |
−1.8 |
Fourth Quintile |
20.9 |
18.7 |
−2.2 |
Fifth Quintile |
26.5 |
65.1 |
−2.1 |
All |
22.2 |
100.0 |
−1.9 |
Top 10 Percent |
27.2 |
50.2 |
−1.4 |
Top 5 Percent |
27.5 |
39.1 |
−0.6 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
4.9 |
0.9 |
−0.3 |
Second Quintile |
10.7 |
4.2 |
−0.5 |
Third Quintile |
16.8 |
10.8 |
−0.6 |
Fourth Quintile |
19.8 |
18.2 |
−0.8 |
Fifth Quintile |
26.0 |
65.8 |
−1.3 |
All |
21.5 |
100.0 |
−1.0 |
Top 10 Percent |
26.8 |
51.1 |
−0.9 |
Top 5 Percent |
27.3 |
40.0 |
−0.3 |
High Spending and Revenues Scenario |
|||
First Quintile |
5.4 |
0.9 |
−0.8 |
Second Quintile |
11.5 |
4.2 |
−1.3 |
Third Quintile |
18.6 |
11.3 |
−2.8 |
Fourth Quintile |
21.9 |
19.0 |
−3.5 |
Fifth Quintile |
27.0 |
64.4 |
−2.6 |
All |
22.8 |
100.0 |
−2.6 |
Top 10 Percent |
27.5 |
49.4 |
−1.8 |
Top 5 Percent |
27.7 |
38.3 |
−0.8 |
aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
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. |
TABLE E-13 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2030.
|
Average Tax Rate (percentage) |
Percentage Share of Tax Burden |
Percentage Change in After-Tax Incomea |
Low Spending and Revenues Scenario |
|||
First Quintile |
6.2 |
1.1 |
−0.9 |
Second Quintile |
11.5 |
4.6 |
−1.2 |
Third Quintile |
17.4 |
11.0 |
−0.1 |
Fourth Quintile |
20.8 |
19.9 |
0.0 |
Fifth Quintile |
24.7 |
63.4 |
1.1 |
All |
21.2 |
100.0 |
0.4 |
Top 10 Percent |
25.1 |
48.1 |
1.7 |
Top 5 Percent |
25.3 |
36.7 |
2.3 |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
8.8 |
1.3 |
−3.7 |
Second Quintile |
15.1 |
4.9 |
−5.1 |
Third Quintile |
22.6 |
11.8 |
−6.4 |
Fourth Quintile |
26.6 |
20.9 |
−7.3 |
Fifth Quintile |
28.8 |
60.9 |
−4.4 |
All |
25.7 |
100.0 |
−5.3 |
Top 10 Percent |
28.8 |
45.4 |
−3.3 |
Top 5 Percent |
28.6 |
34.2 |
−2.2 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
9.0 |
1.4 |
−3.9 |
Second Quintile |
15.1 |
5.0 |
−5.1 |
Third Quintile |
22.0 |
11.7 |
−5.7 |
Fourth Quintile |
25.6 |
20.5 |
−6.1 |
Fifth Quintile |
28.6 |
61.4 |
−4.1 |
All |
25.3 |
100.0 |
−4.8 |
Top 10 Percent |
28.7 |
46.1 |
−3.2 |
Top 5 Percent |
28.7 |
34.9 |
−2.3 |
High Spending and Revenues Scenario |
|||
First Quintile |
9.8 |
1.3 |
−4.7 |
Second Quintile |
17.0 |
5.1 |
−7.3 |
Third Quintile |
24.9 |
11.9 |
−9.1 |
Fourth Quintile |
28.8 |
20.8 |
−10.1 |
Fifth Quintile |
31.4 |
60.9 |
−7.9 |
All |
28.1 |
100.0 |
−8.4 |
Top 10 Percent |
31.6 |
45.6 |
−7.0 |
Top 5 Percent |
31.4 |
34.4 |
−6.0 |
aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-14 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2040
|
Average Tax Rate (percentage) |
Percentage Share of Tax Burden |
Percentage Change in After-Tax Incomea |
Low Spending and Revenues Scenario |
|||
First Quintile |
7.6 |
1.3 |
−1.7 |
Second Quintile |
12.6 |
4.8 |
−1.6 |
Third Quintile |
18.3 |
11.0 |
−0.6 |
Fourth Quintile |
22.1 |
20.1 |
−0.4 |
Fifth Quintile |
24.0 |
62.7 |
1.7 |
All |
21.4 |
100.0 |
0.5 |
Top 10 Percent |
24.1 |
47.8 |
2.4 |
Top 5 Percent |
24.0 |
36.5 |
2.8 |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
10.2 |
1.5 |
−4.5 |
Second Quintile |
16.4 |
5.3 |
−6.0 |
Third Quintile |
23.3 |
11.9 |
−6.6 |
Fourth Quintile |
27.3 |
21.1 |
−7.0 |
Fifth Quintile |
27.1 |
60.1 |
−2.4 |
All |
25.2 |
100.0 |
−4.3 |
Top 10 Percent |
26.6 |
45.0 |
−1.1 |
Top 5 Percent |
26.2 |
33.9 |
−0.1 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
10.1 |
1.5 |
−4.4 |
Second Quintile |
16.0 |
5.1 |
−5.5 |
Third Quintile |
23.0 |
11.5 |
−6.3 |
Fourth Quintile |
27.4 |
20.7 |
−7.1 |
Fifth Quintile |
28.2 |
61.2 |
−3.9 |
All |
25.8 |
100.0 |
−5.1 |
Top 10 Percent |
28.0 |
46.1 |
−2.9 |
Top 5 Percent |
27.7 |
35.0 |
−2.1 |
High Spending and Revenues Scenario |
|||
First Quintile |
11.3 |
1.5 |
−5.7 |
Second Quintile |
18.9 |
5.3 |
−8.7 |
Third Quintile |
26.5 |
11.8 |
−10.6 |
Fourth Quintile |
30.9 |
20.8 |
−11.7 |
Fifth Quintile |
31.4 |
60.6 |
−8.3 |
All |
29.0 |
100.0 |
−9.2 |
Top 10 Percent |
31.2 |
45.7 |
−7.2 |
Top 5 Percent |
30.8 |
34.7 |
−6.4 |
aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-15 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2050
|
Average Tax Rate (percentage) |
Percentage Share of Tax Burden |
Percentage Change in After-Tax Incomea |
Low Spending and Revenues Scenario |
|||
First Quintile |
8.8 |
1.5 |
−2.0 |
Second Quintile |
13.6 |
4.9 |
−2.0 |
Third Quintile |
19.1 |
11.2 |
−1.0 |
Fourth Quintile |
23.0 |
20.3 |
−0.8 |
Fifth Quintile |
23.4 |
62.1 |
2.1 |
All |
21.6 |
100.0 |
0.6 |
Top 10 Percent |
23.3 |
47.6 |
2.8 |
Top 5 Percent |
23.0 |
36.5 |
3.1 |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
11.5 |
1.7 |
−4.8 |
Second Quintile |
17.4 |
5.6 |
−6.3 |
Third Quintile |
23.3 |
12.2 |
−6.2 |
Fourth Quintile |
26.9 |
21.2 |
−5.9 |
Fifth Quintile |
25.1 |
59.2 |
−0.1 |
All |
24.2 |
100.0 |
−2.8 |
Top 10 Percent |
24.5 |
44.6 |
1.2 |
Top 5 Percent |
23.8 |
33.7 |
2.0 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
11.5 |
1.6 |
−4.9 |
Second Quintile |
17.3 |
5.2 |
−6.2 |
Third Quintile |
23.7 |
11.7 |
−6.7 |
Fourth Quintile |
28.0 |
20.8 |
−7.2 |
Fifth Quintile |
27.2 |
60.5 |
−2.9 |
All |
25.6 |
100.0 |
−4.6 |
Top 10 Percent |
26.8 |
46.0 |
−1.8 |
Top 5 Percent |
26.2 |
35.1 |
−1.2 |
High Spending and Revenues Scenario |
|||
First Quintile |
12.7 |
1.6 |
−6.2 |
Second Quintile |
20.3 |
5.5 |
−9.6 |
Third Quintile |
27.2 |
11.9 |
−11.0 |
Fourth Quintile |
31.3 |
20.6 |
−11.6 |
Fifth Quintile |
30.6 |
60.4 |
−7.5 |
All |
28.9 |
100.0 |
−8.9 |
Top 10 Percent |
30.3 |
46.1 |
−6.5 |
Top 5 Percent |
29.8 |
35.2 |
−6.0 |
aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-16 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2060
|
Average Tax Rate (percentage) |
Percentage Share of Tax Burden |
Percentage Change in After-Tax Incomea |
Low Spending and Revenues Scenario |
|||
First Quintile |
9.6 |
1.5 |
−2.4 |
Second Quintile |
14.7 |
5.0 |
−2.2 |
Third Quintile |
20.5 |
12.2 |
−1.3 |
Fourth Quintile |
23.7 |
20.7 |
−0.9 |
Fifth Quintile |
23.4 |
60.5 |
2.4 |
All |
22.0 |
100.0 |
0.7 |
Top 10 Percent |
23.2 |
46.5 |
3.1 |
Top 5 Percent |
22.8 |
35.7 |
3.3 |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
12.1 |
1.7 |
−5.1 |
Second Quintile |
18.4 |
5.7 |
−6.4 |
Third Quintile |
24.3 |
13.2 |
−6.0 |
Fourth Quintile |
27.0 |
21.5 |
−5.3 |
Fifth Quintile |
24.6 |
57.8 |
0.8 |
All |
24.2 |
100.0 |
−2.1 |
Top 10 Percent |
23.9 |
43.6 |
2.1 |
Top 5 Percent |
23.1 |
33.0 |
2.8 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
12.4 |
1.6 |
−5.4 |
Second Quintile |
18.7 |
5.3 |
−6.8 |
Third Quintile |
25.5 |
12.6 |
−7.5 |
Fourth Quintile |
28.9 |
20.9 |
−7.7 |
Fifth Quintile |
27.9 |
59.6 |
−3.7 |
All |
26.6 |
100.0 |
−5.3 |
Top 10 Percent |
27.5 |
45.7 |
−2.8 |
Top 5 Percent |
27.0 |
35.0 |
−2.3 |
High Spending and Revenues Scenario |
|||
First Quintile |
14.3 |
1.6 |
−7.5 |
Second Quintile |
22.5 |
5.5 |
−11.1 |
Third Quintile |
29.8 |
12.8 |
−12.8 |
Fourth Quintile |
33.1 |
20.9 |
−13.1 |
Fifth Quintile |
31.7 |
59.0 |
−8.6 |
All |
30.5 |
100.0 |
−10.2 |
Top 10 Percent |
31.2 |
45.2 |
−7.6 |
Top 5 Percent |
30.5 |
34.7 |
−7.1 |
aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
TABLE E-17 Simplified Tax Structure: Average Tax Rates and Tax Distribution for Virtually All Federal Taxes Combined, 2070
|
Average Tax Rate (percentage) |
Percentage Share of Tax Burden |
Percentage Change in After-Tax Incomea |
Low Spending and Revenues Scenario |
|||
First Quintile |
9.3 |
1.5 |
−2.6 |
Second Quintile |
15.5 |
5.1 |
−2.2 |
Third Quintile |
21.4 |
12.7 |
−1.6 |
Fourth Quintile |
23.7 |
21.1 |
−0.9 |
Fifth Quintile |
23.3 |
59.6 |
2.6 |
All |
22.1 |
100.0 |
0.8 |
Top 10 Percent |
22.9 |
45.7 |
3.4 |
Top 5 Percent |
22.4 |
34.9 |
3.5 |
Intermediate-1 Spending and Revenues Scenario |
|||
First Quintile |
11.8 |
1.7 |
−5.3 |
Second Quintile |
19.4 |
5.7 |
−6.7 |
Third Quintile |
25.4 |
13.6 |
−6.6 |
Fourth Quintile |
27.1 |
21.7 |
−5.3 |
Fifth Quintile |
24.8 |
57.3 |
0.6 |
All |
24.5 |
100.0 |
−2.4 |
Top 10 Percent |
24.0 |
43.2 |
1.9 |
Top 5 Percent |
23.3 |
32.6 |
2.5 |
Intermediate-2 Spending and Revenues Scenario |
|||
First Quintile |
12.4 |
1.6 |
−5.9 |
Second Quintile |
20.3 |
5.4 |
−7.7 |
Third Quintile |
27.2 |
13.2 |
−8.9 |
Fourth Quintile |
29.5 |
21.4 |
−8.5 |
Fifth Quintile |
27.9 |
58.3 |
−3.6 |
All |
27.1 |
100.0 |
−5.7 |
Top 10 Percent |
27.3 |
44.4 |
−2.5 |
Top 5 Percent |
26.6 |
33.7 |
−2.0 |
High Spending and Revenues Scenario |
|||
First Quintile |
13.9 |
1.6 |
−7.5 |
Second Quintile |
23.1 |
5.6 |
−11.0 |
Third Quintile |
30.2 |
13.3 |
−12.7 |
Fourth Quintile |
32.3 |
21.2 |
−12.1 |
Fifth Quintile |
30.8 |
58.3 |
−7.5 |
All |
29.9 |
100.0 |
−9.4 |
Top 10 Percent |
30.3 |
44.6 |
−6.5 |
Top 5 Percent |
29.7 |
34.0 |
−6.1 |
aCompared with the after-tax income under current law. “Minus” means that after-tax income is reduced. |
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. |