July 15, 2021, 5:00 AM
Summary and analysis of the distribution of tax burdens, the Treasury Office of Tax Analysis reported July 15. The distributional analyses show how federal taxes and proposed changes in tax law affect the distribution of after-tax income across families. Treasury uses a cash income measure — a pre-tax, post-transfer income measure. The components of cash income are divided into labor, capital, and transfer income. At 2022 income levels, cash income totals $18.5 trillion, of which $13.3 trillion (72 percent) is labor earnings, $3.3 trillion (18 percent) is returns to capital, and $1.9 trillion (11 percent) is transfer payments, Treasury noted. …
© 2021 The Bureau of National Affairs, Inc.
All Rights Reserved