Research Report Distributional Effects of the President's New Tax Proposals
Leonard E. Burman, Ngan Phung
Display Date
Download Report
(325 KB)

The White House announced a package of tax proposals as part of what President Obama called “Middle Class Economics” in the State of the Union Address. This paper summarizes and discusses TPC’s distributional estimates, focusing on the distribution of all income tax cuts, the major tax cut provisions, and the largest tax increase provisions including the new fee on financial institutions. The tax cuts primarily benefit low-income single workers and working age households with children. The income tax increases primarily affect those with very high incomes and those with a substantial amount of capital assets.
Research Areas Wealth and financial well-being Families Social safety net Taxes and budgets
Tags Families with low incomes Economic well-being Employment and income data Workers in low-wage jobs Refundable tax credits Individual taxes Federal budget and economy Campaigns, proposals, and reforms Earned income tax credit Federal tax issues and reform proposals
Policy Centers Urban-Brookings Tax Policy Center