T17-0287 - Effective Marginal Individual Income Tax Rates (EMTR) on Capital Income Under Current Law and Senate Bill: The Tax Cuts and Jobs Act, As Ordered Reported by the Committee on Finance; By Expanded Cash Income Percentile, 2025
Table shows the effect marginal tax rates on capital income under current law and the Senate Tax Cuts and Jobs Act as passed by Committee on Finance by Expanded Cash Income Percentile in 2025. We calculate effective marginal tax rates by adding $1,000 to the income source and recomputing tax liability. Our computation includes the impact of the alternative minimum tax and the phase-in and phase-out of credits and other tax provisions. We assume that the increase in income does not change the reported amount of any deductions, exclusions, or other forms of income. Effective marginal tax rates are weighted by the appropriate income source.