Eyes Wide Open:

The Implications and Opportunities

of the Current Tax Reform Debate
The Honorable Sander Levin
Distributional Analyses of
Selected Tax Expenditures
June 2011
Slides are based on data provided by
the Joint Committee on Taxation
 Employer Provided Health Benefits and
Deduction for Self-Employed Health
(2011 rates and income levels; income tax only)

50%

45%

40%

35%

30%
46%
25%
35%
20%

15%
19%
10%

5%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

3
 Mortgage Interest Deduction
(2009 rates and income levels)

40%

35%

30%

25%
39%

20%
31% 30%

15%

10%

5%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

4
 State and Local Income, Sales, and Personal Property
Tax Deductions
(2009 rates and income levels)

60%

50%

40%

30% 50%

20% 31%

19%

10%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

5
 Charitable Contributions Deduction
(2009 rates and income levels)

60%

50%

40%

55%
30%

20%
26%
19%

10%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

6
 Earned Income Credit
(2009 rates and income levels)

100%

90%

80%

70%

60% 100%

50%

40%

30%

20%

0%
10% 0%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

7
 Child Tax Credit
(2009 rates and income levels)

90%

80%

70%

60%

90%
50%

40%

30%

20%

10%
10%
0%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

8
 Education Credits
(2009 rates and income levels)

90%

80%

70%

60%

50%
81%

40%

30%

20%
19%

10% 0%

0%
Below $100,000 $100,000 to $200,000 $200,000 and over

9
 Long-Term Capital Gains
(2011 rates and income levels)
80%

70%

60%

50%

40% 71%

30%

20%

10%
7% 9% 8%
5%

0%
Below $100,000 $100,000 to $200,000 $200,000 to $500,000 $500,000 to $1,000,000 $1,000,000 and over

10
 Qualified Dividends
(2011 rates and income levels)
45%

40%

35%

30%

25%
41%
20%

15%

17% 18%
10%
13%
10%
5%

0%
Below $100,000 $100,000 to $200,000 $200,000 to $500,000 $500,000 to $1,000,000 $1,000,000 and over

11
 Eyes Wide Open:
The Implications and Opportunities
of the Current Tax Reform Debate
The Honorable Sander Levin