How Much Does the Health Care Reform Law Redistribute Income?

April 15, 2010

TF Staff

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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