How Much Does the Health Care Reform Law Redistribute Income?

April 15, 2010

A new report from the Tax Foundation discusses the effect on income redistribution from the recently passed health care reform bill. Here are the summary results:

Table 1
Summary of Income Redistribution Before and After Health Care Reform
Fiscal Year 2016

Market Income

Percentile

Average Income Redistribution
(OMB Baseline)

Average Income Redistribution
(Post-HCR)

Change in Income Redistribution

0 – 10%

+ 20,309

+ 21,236

+ 927

10 – 20%

+ 12,363

+ 14,396

+ 2,033

20 – 30%

+ 9,862

+ 11,546

+ 1,685

30 – 40%

+ 7,907

+ 8,684

+ 777

40 – 50%

+ 6,917

+ 7,172

+ 255

50 – 60%

+ 4,921

+ 4,717

– 204

60 – 70%

+187

– 248

– 435

70 – 80%

– 4,862

– 5,426

– 564

80 – 90%

– 12,131

– 12,804

– 674

90 – 95%

– 18,800

– 19,776

– 976

95 – 99%

– 61,681

– 64,852

– 3,172

99 – 100%

– 484,493

– 536,697

– 52,204

ALL

0

0

0

Exhibit:

Top 20%

– 47,594

– 51,450

– 3,856

Top 10%

– 83,030

– 90,066

– 7,036

Top 5%

– 147,250

– 160,345

– 13,095

Top 1%

– 484,493

– 536,697

– 52,204

Main Sources: Tax Foundation Fiscal Incidence Microsimulation Model; CBO final score of health care bill; President's FY 2011 Budget

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