Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at different income levels.
The way we usually have organized this is by percentile. For example, if you’re at the 60thpercentile on our income tables, that means that for every 100 taxpayers, about 40 people would have higher incomes than you, and 60 would have lower incomes than you. One thing we’ve been asked is what are the cutoffs or thresholds for the different ranges. That is, what amount of income corresponds to the 60th percentile?