The plan reduces the after-tax income
of the bottom three income deciles by as much as 14.
5 percent of after-tax income
, up from 5 percent in December and the highest level since late 2012.
Key Words: After-tax income, Federal tax burden, tax policies of Reagan, G.
This paper examined the distribution of the total effective tax rates, the share of after-tax income, and the amount of after-tax income among the bottom, middle, and highest household income quintiles, as well as the top one percent, by presidential administration between 1981 and 2000.
To what extent did different lower income household types, for example those with children and those headed by seniors, contribute disproportionately more or less shares of the Federal tax burden and after-tax income than comparably structured upper income households under the Reagan, G.
Cases could be made for much more progressive distributions of the budget surplus--such as distributing the surplus pro rata or even using the entire surplus to increase the after-tax incomes of the poorest members of society, Using the surplus to increase everyone's pretax income by the same percentage is the least progressive plausible answer, under an outcomes-based approach.
The difference between an across-the-board decrease in tax liabilities and an across-the-board increase in after-tax incomes is illustrated by the following example.
Consumer Expenditure Survey data from 1960 to 1996 are used to examine trends in real consumption, real after-tax income, market work time, and real after-tax wages for single-earner and dual-earner households.
Bureau of Labor Statistics, they found the average household real after-tax income of married single earner households fell $1,600 (1986 dollars) between 1973 and 1986, while the same measure rose $800 for married dual earner households (Rubin and Riney 1995, 102-103).