T17-0169 - Distributional Effect of a 25-Percent Top Rate on a Narrow Definition of Pass-Through Income, Baseline: Current Law with AMT Repealed and 12/25/33 Rate Structure, by Expanded Cash Income Level, 2018
Table shows the distributional effects of implementing a 25-percent top rate on qualifying pass-through income by expanded cash income level in 2018. The baseline is current law with the individual alternative minimum tax (AMT) repealed and individual income tax rates of 12, 25, and 33 percent with the 25 and 33 percent bracket thresholds the same as under current law. Under the alternative, qualifying pass-through income would be 30 percent of Schedule C/F, partnership, and rental income; and 100 percent of active S corporation profits. These results do not include the impact of income shifting.