MTR skyline chart

[MattHJensen]

Plot concept:

Standard distributional tables demonstrate how tax reforms will affect the distribution of the tax burden across income groups. Another interesting question is how tax reform will affect incentives across income groups. Alex Brill's paper, "Understanding Middle Class Tax Cuts" included a marginal tax rate skyline chart that demonstrates exactly this.

This visualization should display these marginal tax rate charts for the core provisions of Clinton's plan, Trump's plan, and current law. The main interaction is that the user can select single, joint, or head of household.

Here are the main provisions to include:

Clinton

• Surtax (4%) on AGI over 5mm
• Fair share tax (Buffett Rule) (30% minimum tax)
• Limit the deductions to 28%

Trump

• Three Tax Brackets (12%, 25%, 33%)
• Change thresholds for CG/AMT
• Repeal AMT and Obamacare tax on investment income
• Change the standard deduction threshold
• Repeal personal exemptions
• Repeal HH status (all HH's threshold equals single's)
• Cap itemized deductions

[feenberg]

On Thu, 20 Oct 2016, Matt Jensen wrote:

Plot concept:

Standard distributional tables demonstrate how tax reforms will affect the distribution of the tax burden across income groups. Another interesting question is how tax reform will affect incentives across income groups. Alex Brill's paper, "Understanding Middle Class Tax Cuts" included a marginal tax rate skyline chart that demonstrates exactly this.

Because deadweight loss runs as the square of the tax wedge, the average mtr is not a "sufficient statistic". It helps estimate revenue, but not loss. Perhaps a chart with lines for top and bottom 5% of marginal rates, in addition to the mean rate would be of interest.

dan

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[MattHJensen]

Because deadweight loss runs as the square of the tax wedge, the average mtr is not a "sufficient statistic". It helps estimate revenue, but not loss. Perhaps a chart with lines for top and bottom 5% of marginal rates, in addition to the mean rate would be of interest.

Thanks @feenberg. I'll think about how to add this in our next iteration of these skyline plots.