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PolicyEngine / policyengine-app

PolicyEngine's free web app for computing the impact of public policy.
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Explainer on inequality #284

Open MaxGhenis opened 1 year ago

MaxGhenis commented 1 year ago

This can be a single cross-country explainer on our three measures, including the household size adjustments

MaxGhenis commented 1 year ago

Our projections for a reform to abolish DC's option for spouses to file separately on the same return gives some more motivation for this.

While the relative impact by decile looks unambiguously progressive:

image

It would also raise the top decile's net income share:

image

I know these aren't apples-to-apples, since the first chart sorts households by their baseline net income, so the second one probably includes some households in the ninth income decile at baseline, given some in the tenth fall out of it after the reform. Still I think we need to help our users (including me) better understand these nuances with corner cases like these. @nikhilwoodruff curious what you think.