Since no-one else seemed to be doing it, I’ve analysed the 2005 tax cuts by household. Since inequality and poverty analysis is typically done at a household level, it is more informative to see how the benefits are distributed across households than across individuals. The main findings are:
- The share of the tax cuts going to the richest 1% of households will be 3% in 2005-06 and 4% in 2006-07.
- A greater share of the 2006-07 tax cuts will go to the richest 5% (19%) than to the poorest 50% (11%).
- Middle-income taxpayers get substantially less than an even share of the tax cuts.
To download the analysis (4 page PDF file), click here.