29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile, 2017
Summary Table
Cash Income
2,3
Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units 4
With Tax Cut
With Tax
Increase
Percent
Change in
After-Tax
Income 5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
65.9
72.2
84.4
83.4
55.6
71.7
0.1
0.3
0.1
0.1
15.8
2.4
3.6
1.9
1.3
0.8
-1.3
0.0
2,362.8
2,674.1
2,778.5
2,450.0
-10,206.0
100.0
-459
-560
-648
-681
3,268
-5
-3.4
-1.7
-1.1
-0.6
1.0
0.0
1.4
8.6
15.6
19.1
25.7
20.8
75.4
57.5
15.6
6.9
1.8
0.3
1.9
53.6
87.4
96.5
0.6
0.2
-0.9
-4.1
-4.6
1,217.6
250.7
-1,636.3
-10,037.9
-5,032.4
-774
-327
2,626
63,110
310,106
-0.5
-0.1
0.6
3.0
3.3
21.8
23.1
25.4
30.1
32.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 6.8
Proposal: 5.5
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold
for inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making
Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC credit value for
families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement
savings ($1,000 for couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000
child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers,
indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009; (j) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18
percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2009 dollars): 20% $20,846, 40% $39,988, 60% $71,590, 80% $124,539, 90% $180,564, 95% $252,295, 99% $660,987, 99.9% $3,049,618.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile, 2017
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
65.9
72.2
84.4
83.4
55.6
71.7
0.1
0.3
0.1
0.1
15.8
2.4
3.6
1.9
1.3
0.8
-1.3
0.0
2,362.8
2,674.1
2,778.5
2,450.0
-10,206.0
100.0
-459
-560
-648
-681
3,268
-5
-70.3
-16.5
-6.4
-3.3
4.0
0.0
-0.6
-0.7
-0.7
-0.6
2.6
0.0
0.3
3.4
10.3
18.5
67.5
100.0
-3.4
-1.7
-1.1
-0.6
1.0
0.0
1.4
8.6
15.6
19.1
25.7
20.8
75.4
57.5
15.6
6.9
1.8
0.3
1.9
53.6
87.4
96.5
0.6
0.2
-0.9
-4.1
-4.6
1,217.6
250.7
-1,636.3
-10,037.9
-5,032.4
-774
-327
2,626
63,110
310,106
-2.1
-0.6
2.6
10.9
11.2
-0.3
-0.1
0.4
2.6
1.3
14.4
10.6
16.5
26.0
12.6
-0.5
-0.1
0.6
3.0
3.3
21.8
23.1
25.4
30.1
32.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
40,705
37,758
33,915
28,437
24,688
168,027
24.2
22.5
20.2
16.9
14.7
100.0
13,512
33,137
60,464
105,717
332,349
89,404
652
3,392
10,066
20,910
81,969
18,557
12,860
29,745
50,397
84,807
250,379
70,847
4.8
10.2
16.7
19.8
24.7
20.8
3.7
8.3
13.7
20.0
54.6
100.0
4.4
9.4
14.4
20.3
51.9
100.0
0.9
4.1
11.0
19.1
64.9
100.0
12,437
6,069
4,926
1,257
128
7.4
3.6
2.9
0.8
0.1
165,657
235,719
410,513
2,141,178
9,468,938
36,890
54,659
101,811
581,907
2,761,703
128,767
181,060
308,702
1,559,271
6,707,235
22.3
23.2
24.8
27.2
29.2
13.7
9.5
13.5
17.9
8.1
13.5
9.2
12.8
16.5
7.2
14.7
10.6
16.1
23.5
11.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 6.8
Proposal: 5.5
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2009 dollars): 20% $20,846,
40% $39,988, 60% $71,590, 80% $124,539, 90% $180,564, 95% $252,295, 99% $660,987, 99.9% $3,049,618.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
72.4
67.9
78.9
87.6
56.4
71.7
0.0
0.4
0.2
0.1
12.3
2.4
4.8
1.9
1.3
0.9
-1.2
0.0
2,519.2
2,350.7
2,558.7
2,767.5
-10,136.6
100.0
-595
-530
-599
-693
2,530
-5
-237.8
-19.6
-7.6
-3.9
3.7
0.0
-0.6
-0.6
-0.7
-0.7
2.6
0.0
-0.4
2.4
7.9
17.6
72.4
100.0
-4.7
-1.8
-1.1
-0.8
0.9
0.0
-2.7
7.2
13.7
18.8
25.5
20.8
80.5
48.8
16.5
8.1
1.6
0.0
1.7
39.3
84.0
95.8
0.6
0.2
-0.8
-3.8
-4.5
1,218.1
294.2
-1,618.0
-10,030.9
-5,168.0
-605
-292
2,034
52,157
270,061
-1.9
-0.6
2.4
10.4
11.1
-0.3
-0.1
0.4
2.6
1.3
15.7
11.9
17.8
27.0
13.2
-0.4
-0.2
0.6
2.8
3.2
21.9
23.3
25.2
29.7
32.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
33,450
35,074
33,747
31,556
31,677
168,027
19.9
20.9
20.1
18.8
18.9
100.0
12,732
30,173
53,321
92,353
279,871
89,404
250
2,699
7,881
18,026
68,711
18,557
12,482
27,475
45,440
74,328
211,161
70,847
2.0
8.9
14.8
19.5
24.6
20.8
2.8
7.0
12.0
19.4
59.0
100.0
3.5
8.1
12.9
19.7
56.2
100.0
0.3
3.0
8.5
18.2
69.8
100.0
15,914
7,953
6,289
1,520
151
9.5
4.7
3.7
0.9
0.1
140,958
200,752
349,936
1,857,869
8,388,125
31,426
47,059
86,069
500,412
2,439,842
109,532
153,694
263,867
1,357,456
5,948,283
22.3
23.4
24.6
26.9
29.1
14.9
10.6
14.7
18.8
8.5
14.6
10.3
13.9
17.3
7.6
16.0
12.0
17.4
24.4
11.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 6.8
Proposal: 5.5
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
66.8
54.4
72.6
84.8
47.4
64.2
0.0
0.3
0.0
0.0
6.5
1.0
3.7
1.4
1.2
0.9
-0.7
0.5
41.6
36.9
43.9
39.6
-62.9
100.0
-335
-301
-402
-463
888
-191
-46.5
-13.4
-6.4
-3.3
1.9
-1.8
-0.7
-0.6
-0.6
-0.3
2.3
0.0
0.9
4.4
11.8
21.7
61.1
100.0
-3.4
-1.3
-1.0
-0.7
0.5
-0.4
3.9
8.4
14.7
20.7
25.7
20.1
74.9
20.5
12.7
6.4
0.5
0.0
0.0
18.7
79.7
94.7
0.4
0.1
-0.2
-3.1
-4.4
12.8
1.8
-3.8
-73.7
-42.2
-339
-105
288
27,640
180,725
-1.4
-0.3
0.5
7.7
9.3
0.1
0.2
0.3
1.7
0.9
16.4
11.3
14.4
19.0
9.2
-0.3
-0.1
0.1
2.2
3.0
23.3
24.3
24.3
30.9
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
17,946
17,740
15,791
12,368
10,255
75,772
23.7
23.4
20.8
16.3
13.5
100.0
9,849
23,350
39,855
66,353
181,320
51,323
721
2,256
6,250
14,217
45,760
10,527
9,128
21,094
33,605
52,136
135,560
40,797
5,447
2,527
1,895
386
34
7.2
3.3
2.5
0.5
0.0
101,176
143,504
245,016
1,246,622
6,069,456
23,957
34,984
59,284
357,437
1,952,452
77,219
108,520
185,732
889,186
4,117,004
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.3
9.7
15.7
21.4
25.2
20.5
4.5
10.7
16.2
21.1
47.8
100.0
5.3
12.1
17.2
20.9
45.0
100.0
1.6
5.0
12.4
22.0
58.8
100.0
23.7
24.4
24.2
28.7
32.2
14.2
9.3
11.9
12.4
5.3
13.6
8.9
11.4
11.1
4.5
16.4
11.1
14.1
17.3
8.3
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
70.1
71.5
79.1
89.5
63.1
74.0
0.0
0.2
0.4
0.2
15.3
4.9
5.3
2.5
1.4
1.0
-1.3
-0.4
-19.5
-26.3
-34.4
-48.6
229.4
100.0
-872
-872
-854
-916
3,394
463
-247.2
-25.9
-9.1
-4.4
4.2
1.4
-0.3
-0.4
-0.6
-0.9
2.1
0.0
-0.2
1.0
4.7
14.8
79.5
100.0
-5.2
-2.2
-1.2
-0.8
1.0
0.3
-3.1
6.4
12.3
17.6
25.3
21.9
87.9
64.8
18.6
9.2
2.0
0.1
2.2
47.8
85.0
96.1
0.6
0.2
-0.9
-4.0
-4.6
-26.0
-7.0
40.3
222.2
110.3
-808
-402
2,834
60,334
294,112
-2.3
-0.8
2.9
11.0
11.5
-0.6
-0.3
0.3
2.7
1.3
15.7
12.8
20.1
31.0
14.9
-0.5
-0.2
0.7
2.9
3.3
21.2
22.9
25.5
29.5
31.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,484
8,750
11,696
15,376
19,603
62,623
10.4
14.0
18.7
24.6
31.3
100.0
16,852
38,883
69,198
114,228
335,346
152,719
353
3,364
9,335
21,047
81,593
33,000
16,499
35,520
59,864
93,180
253,753
119,718
9,331
5,082
4,122
1,068
109
14.9
8.1
6.6
1.7
0.2
165,784
230,762
400,541
2,063,034
9,022,743
35,975
53,335
99,088
547,143
2,567,620
129,809
177,427
301,453
1,515,891
6,455,122
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.1
8.7
13.5
18.4
24.3
21.6
1.1
3.6
8.5
18.4
68.7
100.0
1.4
4.2
9.3
19.1
66.4
100.0
0.1
1.4
5.3
15.7
77.4
100.0
21.7
23.1
24.7
26.5
28.5
16.2
12.3
17.3
23.0
10.3
16.2
12.0
16.6
21.6
9.4
16.2
13.1
19.8
28.3
13.5
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
85.3
91.8
94.6
88.2
29.3
86.5
0.0
0.7
0.0
0.0
9.7
0.7
5.7
2.0
1.3
0.8
-0.9
1.5
47.7
31.8
21.2
10.5
-11.2
100.0
-930
-662
-642
-572
1,453
-629
113.8
-23.1
-6.9
-3.1
2.8
-8.7
-4.9
-1.9
0.5
1.8
4.4
0.0
-8.6
10.1
27.3
31.5
39.6
100.0
-5.9
-1.9
-1.1
-0.6
0.7
-1.3
-11.2
6.2
14.8
19.7
24.9
13.5
37.7
19.3
10.3
0.8
0.8
0.0
3.5
44.4
93.0
97.8
0.2
0.1
-0.8
-3.9
-4.6
1.1
0.2
-2.2
-10.3
-4.8
-212
-135
2,000
45,032
258,289
-0.7
-0.3
2.6
10.5
11.1
1.2
0.5
0.9
1.8
0.8
14.7
6.2
8.4
10.3
4.5
-0.2
-0.1
0.6
2.8
3.3
23.1
23.9
24.2
29.8
32.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
8,770
8,213
5,633
3,130
1,317
27,175
32.3
30.2
20.7
11.5
4.9
100.0
15,647
35,755
58,874
91,665
216,103
49,021
-817
2,865
9,334
18,618
52,379
7,225
16,464
32,890
49,540
73,046
163,724
41,797
845
247
187
39
3
3.1
0.9
0.7
0.1
0.0
135,186
188,332
332,770
1,587,850
7,937,589
31,447
45,045
78,368
428,331
2,320,534
103,739
143,287
254,403
1,159,520
5,617,056
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.2
8.0
15.9
20.3
24.2
14.7
10.3
22.0
24.9
21.5
21.4
100.0
12.7
23.8
24.6
20.1
19.0
100.0
-3.7
12.0
26.8
29.7
35.1
100.0
23.3
23.9
23.6
27.0
29.2
8.6
3.5
4.7
4.6
1.9
7.7
3.1
4.2
4.0
1.6
13.5
5.7
7.5
8.5
3.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Tax Units with Children
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
93.8
97.8
98.6
96.8
55.9
89.5
0.0
0.4
0.2
0.2
19.1
3.4
6.6
2.6
1.5
1.0
-1.7
0.1
272.2
222.8
211.3
222.7
-831.5
100.0
-1,207
-975
-932
-987
4,478
-91
101.8
-29.3
-8.1
-4.0
4.8
-0.4
-1.1
-0.9
-0.8
-0.8
3.5
0.0
-2.1
2.1
9.3
20.7
69.9
100.0
-7.0
-2.4
-1.3
-0.8
1.2
-0.1
-13.9
5.8
14.7
19.4
26.9
20.9
83.5
40.4
10.5
3.8
0.5
0.1
5.8
71.7
94.1
98.7
0.6
0.1
-1.6
-5.0
-5.1
78.7
8.8
-198.7
-720.4
-315.1
-802
-199
5,712
86,462
399,875
-1.8
-0.3
4.6
12.6
12.1
-0.2
0.0
0.8
2.9
1.3
16.3
11.2
17.6
24.8
11.2
-0.4
-0.1
1.2
3.6
3.6
22.8
24.2
27.4
31.9
33.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
10,432
10,570
10,488
10,438
8,587
50,838
20.5
20.8
20.6
20.5
16.9
100.0
17,171
40,353
72,386
122,710
362,965
113,062
-1,185
3,327
11,570
24,742
93,249
23,692
18,356
37,026
60,816
97,968
269,716
89,369
4,538
2,056
1,608
385
36
8.9
4.0
3.2
0.8
0.1
189,201
270,179
478,067
2,423,697
11,187,796
43,944
65,613
125,401
687,065
3,299,759
145,257
204,566
352,665
1,736,632
7,888,037
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.9
8.2
16.0
20.2
25.7
21.0
3.1
7.4
13.2
22.3
54.2
100.0
4.2
8.6
14.0
22.5
51.0
100.0
-1.0
2.9
10.1
21.4
66.5
100.0
23.2
24.3
26.2
28.4
29.5
14.9
9.7
13.4
16.3
7.1
14.5
9.3
12.5
14.7
6.3
16.6
11.2
16.8
22.0
10.0
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0293
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
16.1
16.9
26.1
43.9
31.4
25.5
0.0
0.0
0.0
0.1
12.3
2.3
0.7
0.4
0.3
0.4
-1.0
-0.5
-4.0
-7.6
-9.1
-13.0
133.8
100.0
-85
-89
-143
-283
2,419
334
-31.1
-10.8
-6.3
-3.0
3.7
2.3
-0.1
-0.2
-0.3
-0.5
1.1
0.0
0.2
1.4
3.1
9.7
85.5
100.0
-0.7
-0.3
-0.3
-0.3
0.8
0.4
1.5
2.8
4.6
10.9
22.7
16.7
43.5
32.1
14.6
7.3
1.0
0.0
0.2
29.0
78.9
95.7
0.3
0.1
-0.3
-2.8
-3.8
-6.7
-2.4
8.7
134.1
83.4
-269
-176
671
34,995
199,954
-1.3
-0.5
1.0
7.6
9.2
-0.4
-0.3
-0.3
2.1
1.4
11.4
10.4
20.1
43.5
22.7
-0.2
-0.1
0.2
2.0
2.7
15.6
18.3
21.3
28.6
32.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
5,486
9,944
7,536
5,425
6,505
35,193
15.6
28.3
21.4
15.4
18.5
100.0
12,851
26,105
46,194
84,549
297,285
87,173
275
831
2,284
9,460
65,057
14,262
12,576
25,274
43,910
75,088
232,228
72,912
2,933
1,593
1,528
451
49
8.3
4.5
4.3
1.3
0.1
127,727
183,292
318,053
1,732,517
7,447,999
20,187
33,686
67,019
461,102
2,179,691
107,540
149,607
251,035
1,271,415
5,268,308
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.1
3.2
4.9
11.2
21.9
16.4
2.3
8.5
11.4
15.0
63.0
100.0
2.7
9.8
12.9
15.9
58.9
100.0
0.3
1.7
3.4
10.2
84.3
100.0
15.8
18.4
21.1
26.6
29.3
12.2
9.5
15.8
25.5
11.9
12.3
9.3
15.0
22.3
10.1
11.8
10.7
20.4
41.4
21.3
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b)
extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for
couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) reinstate the 39.6 percent bracket; (h)
change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009;
(i) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (j) impose a 20 percent rate on capital
gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.