Table 3

Change in Personal Income Taxes Needed to Fund Universal Health Plan, 1998

Families by Income Level* Average Income Effective Tax Rate
(before UHP)
Taxes Paid
(before UHP)
Effective Tax Rate
(after UHP)
Taxes Paid
(after UHP)
Increase
(after UHP)
Lowest 20% $8,860 -6.9% -$6 11 no change no change $0
Second 20% $22,530 1.4% $315 1.9% $426 $110
Moddle 20% $37,290 5.6% $2,088 7.6% $2,819 $731
Fourth 20% $56,170 8.1% $4,550 10.9% $6,412 $1,592
Top 20% $130,577 15.6% $20,351 21.0% $27,473 $7,123

* Families are ranked by share of poverty-level income.

Note: Effective tax rates show the share of income actually paid in taxes, after deductions, exemptions, and other adjustments are made. Negative taxes indicate net credit received, for example, from the Earned Income Tax Credit. Sources: Bob McIntire, Citizens for Tax Justice, 1998, unpublished tables, based on data from the Congressional Budget Office for effective tax rates; and the author's calculations.


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