Held Harmless by Higher Income Tax Rates?

Research Report

Held Harmless by Higher Income Tax Rates?

Abstract

In 2010, 45 percent of tax returns will either remit no federal income tax or receive a net tax refund. But this figure overstates the share of taxpayers who would be unaffected by higher income tax rates. Raising all rates by 1 percent would hold only 34 percent of tax returns harmless; others would either pay higher taxes or receive smaller net rebates.

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