Fiscal Policy Flashcards
Types of Taxes
2021 Federal Tax Brackets
Taxable Income (Married Filing Jointly) and Tax Rate
$0 - $19,900: 10%
$19,900 - $81,050: 12%
$81,050 - $172,750: 22%
$172,750 - $329,850: 24%
$329,850 - $418,850: 32%
$418,850 - $628,300: 35%
Over $628,300: 37%
Taxable Income (Single) and Tax Rate
$0 - $9,950: 10%
$9,950 - $40,525: 12%
$40,525 - $86,375: 22%
$86,375 - $164,925: 24%
$164,925 - $209,425: 32%
$209,425 - $523,600: 35%
Over $523,600: 37%
The US Flat Tax: Composition by Type of Tax (2018)
The graph illustrates average tax rates by income group in 2018, broken down by different types of taxes:
Payroll taxes
Consumption taxes
Estate tax
Individual income taxes
Corporate and property taxes
Data Source: Emmanuel Saez and Gabriel Zucman, The Triumph of Injustice (2019).
The income groups are presented as percentiles (e.g., P0-10, P10-20, …, P99.99-top 400, Top 400).
The US Tax System: A Giant Flat Tax That Becomes Regressive at the Top (2018)
The graph illustrates average tax rates by income group in 2018.
The average tax rate is 28%.
Income groups are presented as percentiles (e.g., P0-10, P10-20, …, P99.99-top 400, Top 400).
The Rise of Inequality in the United States, 1978-2018
The graph shows the share of national income earned by the top 1% versus the bottom 50%.
Fiscal Policy - Spending Multiplier
Historical Multiplier for Total Government Spending is shown in a graph from 1950-2020.
The shaded regions in the graph represent recessions defined by the NBER (National Bureau of Economic Research).
The solid black line is the cumulative multiplier computed as }{-1} Yn / \Sigma^{}{-1}} Gp , where the time index h is in quarters.
Blue dashed lines represent the 90 percent confidence interval.