The National Academies’ Proposal: Flip the Curve to Better Support Low- to Moderate-Income Families

The National Academies propose a more progressive financing system in which families closer to federal poverty levels pay a smaller fraction of their income than families at the highest end of the income spectrum. This would be a reverse of the current system.

X-axis: Federal poverty level (FPL): In 2019, a household of four with income of $25,750 per year was at the federal poverty level. For "top-out," a maximum income eligibility level (the level above which families would receive no assistance) was estimated. This is referred to as the “top-out income level.” For more, see: https://aspe.hhs.gov/2019-poverty-guidelines.
Y-axis: Percent share of household income