Transcription of Measuring Income for Distributional Analysis
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Measuring Income FOR Distributional Analysis Joseph Rosenberg Urban-Brookings Tax Policy Center July 25, 2013 ABSTRACT This document describes the Income measure the Tax Policy Center (TPC) uses to analyze the distribution of federal taxes. TPC s Income measure, which we call expanded cash Income (ECI), is a broad measure of pre-tax Income . We use it both to rank tax units in distribution tables and to calculate effective tax rates. ECI equals federal adjusted gross Income (AGI) plus various Income sources that are either excluded or deducted from AGI, including 1) excluded health, retirement, and other employee fringe benefits, 2) tax-exempt interest, 3) non-taxable pension and retirement Income , 4) above-the-line adjustments, 5) cash and cash-like transfer payments, and 6) the employer share of payroll taxes and imputed corporate Income tax liability.
MEASURING INCOME FOR DISTRIBUTIONAL ANALYSIS Joseph Rosenberg Urban-Brookings Tax Policy Center July 25, 2013 ABSTRACT This document describes the income measure the Tax Policy Center (TPC) uses to analyze the
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