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The following tables present a distributional analysis of four options to limit the value of individual income tax expenditures for high income taxpayers. The options include limiting the value of itemized deductions to 28 percent, implementing an effective minimum tax of 21 percent against current policy and 27 percent against current law, and limiting the benefit from select tax expenditures to 2 percent of AGI. Except the limitation on itemized deductions, all other options define 'high income taxpayers' to include married couples with AGI greater than $250,000 ($200,000 for singles), indexed to inflation effective 2009. The options are estimated against both current law and current policy baselines for the calendar year 2013. A dynamic 10-year revenue estimate showing the additional revenue generated between 2012 and 2021 from these options is also presented.
Limiting Individual Income Tax Expenditures for High Income Taxpayers |
Limit the Value of Itemized Deductions to 28 Percent |
Current Law Current Policy
Cash Income Cash Income Cash Income Cash Income
Level Percentile Level Percentile
Implement a 21 Percent Effective Minimum Tax |
Current Policy
Cash Income Level Cash Income Percentile Implement a 27 Percent Effective Minimum Tax |
Current Law
Cash Income Level Cash Income Percentile Limit the Benefit of Specific Tax Expenditures to 2 Percent of AGI |
Current Law Current Policy
Cash Income Cash Income Cash Income Cash Income
Level Percentile Level Percentile
Revenue Estimates from Limiting Tax Expenditures for High Income Taxpayers |
Revenue Estimates Under Current Law and Current Policy: 2012-2021
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