Table shows the effect marginal tax rates on wages and salaries under current law and the House Tax Cuts and Jobs Act as passed by Ways and Means Committee by Expanded Cash Income Percentile in 2018. We calculate effective marginal tax rates by adding $1,000 to wages and salaries and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that under the proposal, a certain fraction of individuals recharacterize their wage and salary income as business income eligible for the preferential rates. For these individuals, we also assume that the increment to wages and salary is recharacterized as business income. We assume that the increase in wages does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by current-law wages and salaries.
(42 KB)
Display Date
Image
T17-0259 - Effective Marginal Individual Income Tax Rates (EMTR) on Capital Income Under Current Law and House Bill: H.R.1, The Tax Cuts and Jobs Act as Ordered Reported by Committee on Ways and Means By Expanded Cash Income Level 2018
T17-0257 - Effective Marginal Individual Income Tax Rates (EMTR) on Wages and Salaries Under Current Law and House Bill: H.R.1, The Tax Cuts and Jobs Act as Ordered Reported by Committee on Ways and Means By Expanded Cash Income Level, 2018
T17-0256 - Major Provisions in House Bill: H.R. 1, The Tax Cuts and Jobs Act as Ordered Reported by the Committee on Ways and Means; Tax Units with a Tax Increase or Tax Cut, by Expanded Cash Income Percentile, 2027; Baseline: Current Law
T17-0255 - Major Provisions in House Bill: H.R. 1, The Tax Cuts and Jobs Act as Ordered Reported by the Committee on Ways and Means; Tax Units with a Tax Increase or Tax Cut, by Expanded Cash Income Level, 2027; Baseline: Current Law
Model Estimate Resources