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Eyes Wide Open: The Implications and Opportunities of the Current Tax Reform Debate

The Honorable Sander Levin

1 Prepared by the Committee on Ways & Means Democratic Staff

Distributional Analyses of Selected Tax Expenditures

June 2011 Slides are based on data provided by

the Joint Committee on Taxation

2 Prepared by the Committee on Ways & Means Democratic Staff

Employer Provided Health Benefits and Deduction for Self-Employed Health

(2011 rates and income levels; income tax only)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Below $100,000 $100,000 to $200,000 $200,000 and over

46%

35%

19%

3 Prepared by the Committee on Ways & Means Democratic Staff

Mortgage Interest Deduction (2009 rates and income levels)

4

0%

5%

10%

15%

20%

25%

30%

35%

40%

Below $100,000 $100,000 to $200,000 $200,000 and over

31%

39%

30%

Prepared by the Committee on Ways & Means Democratic Staff

State and Local Income, Sales, and Personal Property Tax Deductions

(2009 rates and income levels)

5

0%

10%

20%

30%

40%

50%

60%

Below $100,000 $100,000 to $200,000 $200,000 and over

19%

31%

50%

Prepared by the Committee on Ways & Means Democratic Staff

Charitable Contributions Deduction (2009 rates and income levels)

6

0%

10%

20%

30%

40%

50%

60%

Below $100,000 $100,000 to $200,000 $200,000 and over

19% 26%

55%

Prepared by the Committee on Ways & Means Democratic Staff

Earned Income Credit (2009 rates and income levels)

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Below $100,000 $100,000 to $200,000 $200,000 and over

100%

0% 0%

Prepared by the Committee on Ways & Means Democratic Staff

Child Tax Credit (2009 rates and income levels)

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Below $100,000 $100,000 to $200,000 $200,000 and over

90%

10% 0%

Prepared by the Committee on Ways & Means Democratic Staff

Education Credits (2009 rates and income levels)

9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Below $100,000 $100,000 to $200,000 $200,000 and over

81%

19%

0%

Prepared by the Committee on Ways & Means Democratic Staff

Long-Term Capital Gains (2011 rates and income levels)

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

Below $100,000 $100,000 to $200,000 $200,000 to $500,000 $500,000 to $1,000,000 $1,000,000 and over

5% 7% 9% 8%

71%

Prepared by the Committee on Ways & Means Democratic Staff

Qualified Dividends (2011 rates and income levels)

11

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Below $100,000 $100,000 to $200,000 $200,000 to $500,000 $500,000 to $1,000,000 $1,000,000 and over

17% 18% 13%

10%

41%

Prepared by the Committee on Ways & Means Democratic Staff

Eyes Wide Open: The Implications and Opportunities of the Current Tax Reform Debate

The Honorable Sander Levin

12 Prepared by the Committee on Ways & Means Democratic Staff