Research Report Measuring Effective Tax Rates
Rachel M. Johnson, Joseph Rosenberg, Roberton C. Williams
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Effective tax rates (ETRs) measure how much people pay in taxes as a percentage of their pretax incomes. That seems simple, but theres an important complication: there are different ways to measure how much someone pays in taxes and how much he collects in pretax income. Those choices matter a great deal. As a result, it is essential to use the same ETR measure when comparing tax burdens across individual taxpayers or groups.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Individual taxes Taxes and business Federal budget and economy Income and wealth distribution
Policy Centers Urban-Brookings Tax Policy Center