Effective Tax Rates (ETRs) Under the Two Structures
Next two slides are charts that show ETRs for all filer types, from AGI = $15K to $500K
These facilitate horizontal equity comparisons
- Current age preferences create striking differences among filers differing only in age, even well into the income scale – even with only one spouse assumed to have income
- For a given age category, each tax structure places lower ETRs on larger families, with differences greatest at lower income levels – as expected
Note – No itemized deductions in examples.