By contrast, the large market income losses of the second and third quintiles were reduced substantially with before-tax income
losses reduced to 4 and 5 percent respectively.
One North Carolina server volunteered: "I made $60,000 in tips last year, reported $40,000--and had a before-tax income
The official CE definition of before-tax income
does not include lump-sum income, and the CE imputes only the components of before-tax income
3) The CBO definition of before-tax income
is composed of labor income, business income, capital gains, capita income (excluding capital gains), income received in retirement for past services and other sources of income.
A family is poor if its before-tax income
is less than the threshold.
If we become obsessed with tax breaks for the rich and ignore everything else, the skewing of before-tax income
will become so large that even the most redistributive taxes will still leave gross inequities.
Nearly one in five Americans under age 65 lived in families that spent more than 10% of before-tax income
on insurance premiums and medical care in 2006 (the last year for which figures are available), up from one in seven Americans in 2001, the report says.
The think tank defines a high out-of-pocket burden for healthcare as spending more than 10% of before-tax income
on insurance premiums and medical care.
If the business could be sold for $400,000, and the funds invested at 8 percent, the resulting before-tax income
would be $32,000 per year, over three times that provided if the business were retained.
It also would increase GDP by nearly 10 percent and ultimately raise the before-tax income
of average Americans by 10 percent.
13) These numbers are meant to be realistic: in 1998, a single taxpayer with before-tax income
of $30,000 would have paid $6,124 in income tax if she had had only the basic personal amount credit and had paid provincial tax equal to half of basic federal tax.
So, as an example, a family of four living in a large Canadian city with a before-tax income
of less than $37,253 in 2003 would have been living below the poverty line.