The Gerontologist, Vol 32, Issue 4 472-477, Copyright © 1992 by The Gerontological Society of America
Did tax reform hurt the elderly?
Economics, Public Policy Institute, American Association of Retired Persons, Washington, DC 20049.
Federal and state income tax reform increased aggregate federal tax
payments of elderly taxpayers by just over 5% and their aggregate state
taxes by about 6%. However, the entire increase is accounted for by the
elderly in the top income decile. The mean change in total income taxes
paid by the elderly was $135, but the median increase was zero because most
older persons paid no federal or state income tax before or after tax
reform. The overall effect of tax reform was a slight shift in income tax
burdens from the nonelderly to the elderly reversing a trend dating from
the late 1970s.