My looking into this issue has nothing to do with revenue neutrality. I ASSUME it is revenue neutral. If it is not it's either a tax cut or a tax increase in addition to reform. I want to evaluate the reform, itself. My interest is in trying to accurately reproduce the NRST calculation on 1999 data for the purpose of comparing it to the JCT distribution of tax burden data. I am close to being able to do so.
My interest is in trying to accurately reproduce the NRST calculation on 1999 data for the purpose of comparing it to the JCT distribution of tax burden data.
One problem with the JCT data to watch out for in your comparisons, it does not account for the incidence of corporate income taxes, or estate and gift taxes on individuals. Taxes which are also repealed under the NRST.
Corporate income taxes are about 3% of overall gross family income. estate & gift taxes around another 1%. Both are considered to impact more on upper income more than lower income groups. Though that is a debatable point. Economists differ on how to look a incidence of such taxes, especially corporate income & the business remittence of FICA.