Tax Policy Center Releases Revenue and Distributional Impacts of Current Tax Law

The Tax Policy Center yesterday released revenue and distributional impacts of the current tax law by both cash income percentiles and cash income class:

• Current-Law Distribution of Federal Taxes By Cash Income Percentiles, 2006 (T05-0298)

The following table shows the distributional breakdown of existing law (the federal taxes include the individual income tax, payroll tax (Social Security and Medicare), corporate income tax, and estate tax) by cash income group (percentage):

Income %	% of Income	% of Federal Taxes	Total Federal Tax Rate
Bottom 20%	2.5%	0.4%	3.3%
Next 20%	6.4%	2.3%	7.5%
Middle 20%	11.4%	7.8%	14.4%
Next 20%	19.8%	17.5%	18.6%
Top 20%	60.3%	71.9%	25.1%

The following table shows the distributional breakdown of existing law within the top 10% of income group:

Income %	% of Income	% of Federal Taxes	Total Federal Tax Rate
Top 10%	44.7%	56.2%	26.5%
Top 5%	33.5%	43.9%	27.5%
Top 1%	18.4%	25.6%	29,3%
Top 0.5%	14.5%	20.7%	30.0%
Top 0.1%	8.4%	12.5%	31.4%

• Current-Law Distribution of Federal Taxes By Cash Income Class, 2006 (T05-0297)

The following table shows the distributional breakdown of existing law (the federal taxes include the individual income tax, payroll tax (Social Security and Medicare), corporate income tax, and estate tax) by cash income group (class):

Income %	% of Income	% of Federal Taxes	Total Federal Tax Rate
< 10k	1.2%	0.2%	3.8%
10k - 20k	4.2%	0.9%	4.7%
20k - 30k	5.6%	2.6%	10.0%
30k - 40k	5.9%	4.1%	14.4%
40k - 50k	5.9%	4.7%	16.7%
50k - 75k	14.4%	12.7%	18.6%
75k - 100k	11.9%	11.5%	20.3%
100k - 200k	22.5%	24.6%	23.1%
200k - 500k	12.6%	15.7%	26.1%
500k - 1m	5.0%	6.4%	26.9%
> 1m	11.2%	16.4%	30.8%