Note that all the analyses included in this paper exclude filers claimed as dependents, as well as filers with negative baseline after-tax incomes. After-tax income, as defined by Tax-Calculator and used in all analyses in this paper, is the sum of wage and salary income net of certain items (11) minus all federal tax liability (individual and payroll).
Note that this policy increases the lowest-end after-tax incomes by more than 50 percent.
Caption: THE TAX ACT BOOSTS INCOMES MOST FOR HIGH-INCOME FAMILIES Percent Change in After-Tax Income, 2018,2025,2027
Caption: BUDGET CUTS TO CLOSE THE DEFICIT CAUSED BY THE TAX ACT WOULD LEAVE MOST PEOPLE WORSE OFF Percent Change in After-Tax Income, 2018,2025,2027
"Some house hunters--particularly wealthy buyers--will see an increase in after-tax income
making an already tough housing market even more competitive.
The combination of falling spending and rising income translated into an increase in the personal saving rate, which climbed to 5.5 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.H.
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.
If, however, the right question is about the distribution of after-tax incomes, the intuitively fair thing might be to cut taxes so that taxpayers at all income levels enjoyed the same percentage increase in after-tax income.
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.
Between 1986 and 1990, after-tax income
for black households rose faster than for white households, 31 percent versus 24 percent.
* On a static basis, the plan would lead to 10.56% lower after-tax income for all taxpayers and 17.91% lower after-tax income for the top 1%.
* Accounting for economic growth, all taxpayers would see an increase in after-tax income of at least 14% at the end of the decade.
This paper addresses a part of these issues by focusing on two questions: (1) Has the real consumption and real after-tax income of married single worker households fallen in recent decades, while the real consumption and real after-tax income of married dual worker households stabilized or risen?
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).