Retracting Some Recent Estimates
On September 21, TPC published several tables (T11-0359 through 0362) that examine how effective tax rates vary within income groups. Those tables were intended to shed light on recent claims that some high-income taxpayers face low tax rates.
Unfortunately, we made an error in our calculations. That error, which involved rollover distributions from 401(k)s and similar retirement plans, caused us to significantly overstate the income of some high-income taxpayers and thus understate the tax rates they paid. We have therefore retracted the tables while we work to fix our estimates.
We regret this error and apologize to our many users for any inconvenience. TPC is committed to providing the highest-quality information about America’s tax system. We fell short this time. But we have sharpened our pencils and look forward to releasing new estimates.