November 5, 2012
Distribution of Federal Taxes
Taxation of Owner-Occupied and Rental Housing: Working Paper 2012-14
This paper illustrates how the different tax treatments of owner-occupied and rented houses affect the relative costs of owning and renting. In the examples, a representative landlord computes the rental rate (the ratio of the rent to the value of the house) required to break even on an investment in a house. Potential homeowners compare that market rental rate as a tenant with an implicit rental rate that reflects the cost of owning a home.
The tax advantages tend to make owning more advantageous than renting for higher-income households, but lower-income households can find renting cheaper than owning. The paper also illustrates how limiting or eliminating certain tax advantages would change the cost of owning relative to renting. While the precise comparisons are specific to the conditions detailed in the examples, their general implications are broadly applicable.
Jul 2012 - The recent recession has had a substantial impact on income, the amount of taxes owed, and average tax rates. Changes in households’ before-tax income and average tax rates in 2008 and 2009 were substantial and differed markedly across the income distribution.
- October 25, 2011
- June 01, 2010
- October 25, 2011
Effective Federal Tax Rates: 1979 to 2001
April 1, 2004
Updating the series of historical effective tax rates estimated by the Congressional Budget Office (CBO) and presented in a recent paper, Effective Federal Tax Rates, 1997 to 2000, the following tables provide values for an additional year—2001.
The tables show effective tax rates for the four largest sources of federal revenues--individual income taxes, corporate income taxes, payroll taxes, and excise taxes--as well as the total effective rate for the four taxes combined. The tables also present average pretax and after-tax household income; counts of households; and shares of taxes, income, and households for each fifth (quintile) of the income distribution and the top percentiles of households.
- summary tables
- effective tax rates
- share of taxes paid
- average before-tax household income
- average after-tax household income
- shares of before tax income
- shares of after tax income
- income ranges for each income class
- all of the above information
- distribution of income, households with children
- distribution of income, elderly households
- distribution of income, nonelderly childless households
- households paying more in payroll taxes than income taxes
- median before-tax and after-tax income
- sources of income, by income category
- Historical Effective Tax Rates, 1979 to 2005: Supplement with Additional Data on Sources of Income and High-Income Households
- data sources and assumptions
- Effective Tax Rates: Comparing Annual and Multiyear Measures
- Effective tax rates
- blog post
Data on the Distribution of Federal Taxes and Household Income
April 6, 2009
Effective Federal Tax Rates, 1979-1997
October 1, 2001
Effective Federal Tax Rates, 1997 to 2000
August 29, 2003
Historical Effective Federal Tax Rates: 1979 to 2002
March 1, 2005