Taxes

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Federal revenues come largely from individual income taxes and payroll taxes, with corporate income taxes and other taxes playing smaller roles. CBO projects future federal revenues under current law, estimates the distribution of income and federal taxes, and analyzes the effects of various features of the federal tax system and potential changes to that system. (A separate page on the Budget provides information about a broader set of CBO's work in that area.)

  • Report

    The Distribution of Household Income and Federal Taxes, 2013

    June 8, 2016

    In 2013, households in the top, middle, and bottom income quintiles received 53, 14, and 5 percent, respectively, of the nation's before-tax income and paid 69, 9, and 1 percent, respectively, of federal taxes.

  • Report

    An Analysis of the President’s 2017 Budget

    March 29, 2016

    CBO and the staff of the Joint Committee on Taxation (JCT) project that, between 2017 and 2026, the President’s budget would result in deficits averaging 3 percent of GDP and totaling $6.9 trillion, $2.4 trillion less than CBO’s baseline.

  • Report

    Updated Budget Projections: 2016 to 2026

    March 24, 2016

    CBO projects a $534 billion deficit in fiscal year 2016, about $100 billion more than in 2015. If current laws generally remained unchanged, the deficit would increase from 2.9 percent to 4.9 percent of GDP over the next decade.

  • Report

    The Budget and Economic Outlook: 2016 to 2026

    January 25, 2016

    CBO estimates that the federal budget deficit in 2016 will be $544 billion, raising debt held by the public to 76 percent of GDP. Solid short-term growth in the economy is projected to be followed by slower growth in subsequent years.

  • Report

    Effective Marginal Tax Rates for Low- and Moderate-Income Workers in 2016

    November 19, 2015

    In 2016, low- and moderate-income workers will face an effective marginal tax rate of 31 percent, on average. Federal individual income and payroll taxes will be the main contributors.

  • Report

    CBO’s Revenue Forecasting Record

    November 10, 2015

    CBO's revenue projections since 1982 have, on average, been a bit too high—more so for projections spanning six years than for those spanning two—but their overall accuracy has been similar to that of the projections of other agencies.

  • Report

    Taxing Capital Income: Effective Marginal Tax Rates Under 2014 Law and Selected Policy Options

    December 18, 2014

    On average, the effective marginal tax rate on capital income is 18 percent, but that rate varies significantly by sector. In this report, CBO estimates effective rates under current law and eight policy options.

  • Report

    Options for Reducing the Deficit: 2015 to 2024

    November 20, 2014

    CBO periodically issues a compendium of options—this installment presents 79—to inform lawmakers about the budgetary effects of ways to reduce the deficit. The report has both interactive and printable formats.

  • Report

    The Distribution of Household Income and Federal Taxes, 2011

    November 12, 2014

    In 2011, households in the top, middle, and bottom quintiles received 52, 14, and 5 percent of the nation's before-tax income, respectively; the shares of federal taxes paid by those households were 69, 9, and 1 percent.

  • Report

    Choices for Deficit Reduction: An Update

    December 20, 2013

    Federal debt is projected to rise significantly over the long term. What policy changes could reduce future deficits and thus lower the trajectory of federal debt? What criteria might be used to evaluate those policy changes?

  • Report

    The Distribution of Major Tax Expenditures in the Individual Income Tax System

    May 29, 2013

    In 2013, the benefits of 10 of the largest tax expenditures will equal 11.7 percent of income for households in the lowest income quintile, 9.4 percent for the highest quintile, and under 8 percent for the middle quintiles, CBO estimates.