28-Jul-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0106
Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach)
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2015 ¹
Detail Table
Expanded Cash Income
Level (thousands of
2015 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units3
With Benefit
*
1.7
6.9
16.7
24.3
38.7
49.8
63.1
77.9
84.1
78.9
29.9
Without
Benefit
100.0
98.3
93.2
83.3
75.7
61.3
50.2
36.9
22.1
15.9
21.2
70.1
Benefit as a
Percent of AfterTax Income 4
0.0
0.0
0.0
0.0
-0.2
-0.2
-0.5
0.4
2.9
4.4
0.5
0.9
Share of
Total Benefit
0.0
-0.2
-0.1
-0.2
-1.1
-3.1
-6.1
11.4
64.7
28.0
6.8
100.0
Average Benefit
Dollars
-2
-6
-5
-13
-81
-127
-378
418
6,336
21,239
9,827
570
Share of Federal Taxes
Percent of
Federal Taxes
-0.4
-1.4
-0.4
-0.4
-1.6
-1.6
-2.7
1.6
9.7
11.2
1.0
3.4
With Provision
0.2
0.4
0.9
1.7
2.4
6.9
7.6
24.5
22.8
8.6
24.0
100.0
Average Federal Tax Rate6
Without
Provision
With
Provision
Without
Provision
0.2
0.4
0.8
1.6
2.3
6.6
7.1
24.1
24.2
9.2
23.4
100.0
6.7
2.9
4.7
8.4
11.0
13.3
15.9
18.9
23.0
28.1
34.1
19.8
6.7
2.9
4.6
8.3
10.8
13.1
15.5
19.2
25.3
31.2
34.5
20.5
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2015 1
Expanded Cash Income
Level (thousands of
2015 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units
Number
(thousands)
14,727
26,248
20,958
16,159
13,672
24,036
15,591
26,693
9,954
1,284
673
171,259
Pre-Tax Income
Federal Tax Burden
Percent of
Total
Average
(dollars)
Percent of
Total
Average
(dollars)
8.6
15.3
12.2
9.4
8.0
14.0
9.1
15.6
5.8
0.8
0.4
100.0
5,642
14,969
24,710
34,754
44,867
61,486
86,698
138,229
282,645
674,624
2,963,371
83,723
0.6
2.7
3.6
3.9
4.3
10.3
9.4
25.7
19.6
6.0
13.9
100.0
379
441
1,149
2,911
4,926
8,148
13,818
26,055
65,087
189,422
1,011,094
16,582
Percent of
Total
0.2
0.4
0.9
1.7
2.4
6.9
7.6
24.5
22.8
8.6
24.0
100.0
After-Tax Income 5
Average
(dollars)
Percent of
Total
Average
Federal Tax
Rate 6
5,264
14,529
23,562
31,844
39,942
53,338
72,879
112,174
217,558
485,202
1,952,276
67,140
0.7
3.3
4.3
4.5
4.8
11.2
9.9
26.0
18.8
5.4
11.4
100.0
6.7
2.9
4.7
8.4
11.0
13.3
15.9
18.9
23.0
28.1
34.1
19.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
Number of AMT Taxpayers (millions). Baseline: 4.1
Proposal: 4.9
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would (a) repeal the tax deferral of contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined
benefit retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal
penalty. Baseline federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. For a description of TPC's current
law baseline, see
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class
but are included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash
income.
28-Jul-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0106
Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach)
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2015 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Level (thousands of
2015 dollars)
2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Benefit
3
Without
Benefit
*
2.0
7.8
19.5
26.2
44.2
57.1
62.9
73.0
74.0
66.9
19.8
100.0
98.0
92.2
80.5
73.8
55.8
42.9
37.2
27.0
26.0
33.1
80.2
Benefit as a
Percent of AfterTax Income
4
Share of
Total Benefit
0.0
0.0
0.0
-0.1
-0.5
-0.6
0.0
0.9
1.7
0.7
-1.0
0.1
-1.0
-5.3
-5.2
-20.0
-87.7
-170.6
1.6
269.3
185.3
22.0
-88.1
100.0
Average Benefit
Dollars
Share of Federal Taxes
Percent of
Federal Taxes
-1
-5
-7
-37
-207
-277
5
921
3,373
3,460
-19,258
20
-0.3
-0.5
-0.3
-0.9
-3.2
-2.7
0.0
3.2
4.7
1.6
-1.7
0.3
With Provision
0.9
2.6
4.2
5.9
7.1
16.7
13.1
22.0
10.2
3.5
13.5
100.0
6
Average Federal Tax Rate
Without
Provision
With
Provision
0.9
2.5
4.1
5.9
6.9
16.2
13.1
22.7
10.7
3.5
13.2
100.0
8.4
5.7
8.4
12.1
14.4
17.1
20.0
22.0
26.4
30.8
36.8
18.1
Without
Provision
8.4
5.7
8.4
12.0
13.9
16.6
20.0
22.7
27.7
31.3
36.2
18.1
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2015 ¹
Tax Units
Pre-Tax Income
Federal Tax Burden
Expanded Cash Income
Level (thousands of
2
2015 dollars)
Number
(thousands)
Percent of
Total
Average
(dollars)
Percent of
Total
Average
(dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
12,823
20,274
13,499
9,553
7,482
10,875
5,173
5,169
971
112
81
86,656
14.8
23.4
15.6
11.0
8.6
12.6
6.0
6.0
1.1
0.1
0.1
100.0
5,607
14,829
24,612
34,693
44,799
60,830
85,880
130,821
269,658
683,749
3,056,287
43,186
1.9
8.0
8.9
8.9
9.0
17.7
11.9
18.1
7.0
2.1
6.6
100.0
470
849
2,078
4,196
6,429
10,388
17,157
28,800
71,273
210,749
1,126,040
7,797
Percent of
Total
0.9
2.6
4.2
5.9
7.1
16.7
13.1
22.0
10.2
3.5
13.5
100.0
5
Average
(dollars)
Percent of
Total
Average
Federal Tax
6
Rate
5,137
13,980
22,534
30,497
38,369
50,442
68,723
102,022
198,385
473,000
1,930,247
35,389
2.2
9.2
9.9
9.5
9.4
17.9
11.6
17.2
6.3
1.7
5.1
100.0
8.4
5.7
8.4
12.1
14.4
17.1
20.0
22.0
26.4
30.8
36.8
18.1
After-Tax Income
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would (a) repeal the tax deferral of contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined benefit
retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal penalty. Baseline
federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. For a description of TPC's current law baseline, see
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
28-Jul-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0106
Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach)
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2015 ¹
Detail Table - Married Tax Units Filing Jointly
Expanded Cash Income
Level (thousands of
2015 dollars)
2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Benefit
3
Without
Benefit
0.0
0.6
2.8
7.7
16.0
28.6
43.4
63.2
78.8
85.3
80.9
46.7
100.0
99.4
97.2
92.3
84.0
71.4
56.6
36.8
21.2
14.7
19.1
53.3
Benefit as a
Percent of AfterTax Income
4
Share of
Total Benefit
-0.1
-0.1
0.0
0.0
0.0
-0.3
-1.1
0.2
3.1
4.8
0.8
1.3
0.0
0.0
0.0
0.0
0.1
-1.6
-7.3
3.8
66.0
29.9
9.2
100.0
Average Benefit
Dollars
-3
-10
-6
-7
15
-171
-813
175
6,789
23,553
14,541
1,537
Share of Federal Taxes
Percent of
Federal Taxes
-3.0
-13.6
-7.2
-0.7
0.6
-2.9
-6.9
0.7
10.6
12.6
1.5
4.5
With Provision
0.0
0.0
0.0
0.2
0.4
2.4
4.8
24.9
28.4
10.8
27.9
100.0
6
Average Federal Tax Rate
Without
Provision
With
Provision
0.0
0.0
0.0
0.2
0.4
2.3
4.3
24.0
30.0
11.6
27.1
100.0
2.1
0.5
0.4
2.9
6.2
9.5
13.5
18.0
22.6
27.8
33.7
21.6
Without
Provision
2.1
0.4
0.3
2.9
6.2
9.2
12.5
18.1
25.0
31.3
34.2
22.5
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2015 ¹
Tax Units
Pre-Tax Income
Expanded Cash Income
Level (thousands of
2
2015 dollars)
Number
(thousands)
Percent of
Total
Average
(dollars)
Percent of
Total
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
839
1,960
2,937
2,955
3,032
8,113
8,040
19,326
8,681
1,133
565
58,086
1.4
3.4
5.1
5.1
5.2
14.0
13.8
33.3
14.9
2.0
1.0
100.0
4,948
15,596
24,999
34,975
45,080
62,635
87,457
141,066
284,339
673,359
2,888,972
157,102
0.1
0.3
0.8
1.1
1.5
5.6
7.7
29.9
27.1
8.4
17.9
100.0
Federal Tax Burden
Average
(dollars)
105
75
89
1,021
2,789
5,917
11,775
25,322
64,275
186,897
973,043
33,862
Percent of
Total
0.0
0.0
0.0
0.2
0.4
2.4
4.8
24.9
28.4
10.8
27.9
100.0
5
Average
(dollars)
Percent of
Total
Average
Federal Tax
6
Rate
4,843
15,521
24,910
33,954
42,291
56,718
75,682
115,744
220,064
486,462
1,915,929
123,240
0.1
0.4
1.0
1.4
1.8
6.4
8.5
31.3
26.7
7.7
15.1
100.0
2.1
0.5
0.4
2.9
6.2
9.5
13.5
18.0
22.6
27.8
33.7
21.6
After-Tax Income
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would (a) repeal the tax deferral of contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined benefit
retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal penalty. Baseline
federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. For a description of TPC's current law baseline, see
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
28-Jul-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0106
Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach)
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2015 ¹
Detail Table - Head of Household Tax Units
Expanded Cash Income
Level (thousands of
2015 dollars)
2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Benefit
3
Without
Benefit
0.0
0.2
6.1
17.3
29.1
45.2
57.5
63.6
66.5
79.1
78.7
26.3
100.0
99.8
93.9
82.7
70.9
54.8
42.5
36.4
33.5
20.9
21.3
73.7
Benefit as a
Percent of AfterTax Income
4
Share of
Total Benefit
-0.1
-0.1
0.0
0.2
0.4
0.7
0.6
1.4
1.1
0.9
0.2
0.6
-0.1
-0.4
0.3
3.6
7.4
26.1
12.9
39.6
8.2
1.5
0.9
100.0
Average Benefit
Dollars
Share of Federal Taxes
Percent of
Federal Taxes
-4
-8
5
74
174
389
416
1,463
2,324
4,509
4,285
283
0.6
0.5
-0.4
12.7
6.0
6.1
3.2
5.8
3.6
2.3
0.3
4.9
With Provision
-0.5
-4.7
-4.0
1.4
6.1
21.1
19.7
33.6
11.3
3.2
12.6
100.0
6
Average Federal Tax Rate
Without
Provision
With
Provision
Without
Provision
-0.5
-4.5
-3.8
1.5
6.2
21.3
19.3
33.9
11.2
3.2
12.0
100.0
-10.6
-11.0
-5.2
1.7
6.5
10.5
15.0
19.4
24.2
29.1
34.1
11.1
-10.7
-11.0
-5.2
1.9
6.9
11.1
15.5
20.5
25.1
29.8
34.2
11.6
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2015 ¹
Tax Units
Pre-Tax Income
Federal Tax Burden
Expanded Cash Income
Level (thousands of
2
2015 dollars)
Number
(thousands)
Percent of
Total
Average
(dollars)
Percent of
Total
Average
(dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
919
3,727
4,182
3,290
2,840
4,482
2,069
1,806
235
22
14
23,633
3.9
15.8
17.7
13.9
12.0
19.0
8.8
7.6
1.0
0.1
0.1
100.0
6,748
15,392
24,808
34,738
44,828
61,026
85,747
129,990
270,186
681,258
3,700,469
51,742
0.5
4.7
8.5
9.4
10.4
22.4
14.5
19.2
5.2
1.2
4.1
100.0
-716
-1,691
-1,300
581
2,923
6,376
12,860
25,209
65,393
198,427
1,261,437
5,728
Percent of
Total
-0.5
-4.7
-4.0
1.4
6.1
21.1
19.7
33.6
11.3
3.2
12.6
100.0
5
Average
(dollars)
Percent of
Total
Average
Federal Tax
6
Rate
7,464
17,082
26,108
34,157
41,905
54,650
72,888
104,781
204,793
482,832
2,439,032
46,014
0.6
5.9
10.0
10.3
10.9
22.5
13.9
17.4
4.4
1.0
3.0
100.0
-10.6
-11.0
-5.2
1.7
6.5
10.5
15.0
19.4
24.2
29.1
34.1
11.1
After-Tax Income
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would (a) repeal the tax deferral of contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined benefit
retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal penalty. Baseline
federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. For a description of TPC's current law baseline, see
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
28-Jul-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0106
Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach)
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2015 ¹
Detail Table - Tax Units with Children
Expanded Cash Income
Level (thousands of
2015 dollars)
2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Benefit
3
Without
Benefit
0.0
0.2
4.8
15.1
26.7
42.1
57.8
73.9
86.3
91.7
91.1
43.8
100.0
99.8
95.2
84.9
73.3
57.9
42.2
26.1
13.7
8.3
9.0
56.2
Benefit as a
Percent of AfterTax Income
-0.1
-0.1
0.0
0.2
0.4
0.6
0.5
1.7
4.2
5.3
1.6
2.2
4
Share of
Total Benefit
Average Benefit
Dollars
0.0
-0.1
0.0
0.2
0.6
2.2
2.0
21.3
46.5
17.2
10.2
100.0
Share of Federal Taxes
Percent of
Federal Taxes
-5
-10
0
57
156
306
382
1,930
9,301
25,601
30,551
2,059
0.7
0.6
0.0
36.8
6.6
5.2
3.2
7.7
14.3
13.6
3.1
8.7
With Provision
-0.1
-0.7
-0.7
0.1
0.8
3.7
5.4
24.0
28.2
10.9
28.2
100.0
6
Average Federal Tax Rate
Without
Provision
With
Provision
Without
Provision
-0.1
-0.7
-0.6
0.1
0.7
3.6
5.2
23.8
29.7
11.4
26.8
100.0
-11.8
-11.7
-6.0
0.4
5.3
9.6
13.9
17.9
22.7
28.0
33.9
19.9
-11.9
-11.8
-6.0
0.6
5.7
10.1
14.4
19.2
26.0
31.8
34.9
21.7
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2015 ¹
Tax Units
Pre-Tax Income
Expanded Cash Income
Level (thousands of
2
2015 dollars)
Number
(thousands)
Percent of
Total
Average
(dollars)
Percent of
Total
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
1,201
4,695
5,453
4,328
3,781
7,344
5,290
11,313
5,128
690
341
49,840
2.4
9.4
10.9
8.7
7.6
14.7
10.6
22.7
10.3
1.4
0.7
100.0
6,477
15,357
24,859
34,799
44,841
61,661
87,129
140,758
286,805
669,834
2,897,339
119,143
0.1
1.2
2.3
2.5
2.9
7.6
7.8
26.8
24.8
7.8
16.6
100.0
Federal Tax Burden
Average
(dollars)
-766
-1,800
-1,481
154
2,378
5,936
12,138
25,139
65,152
187,644
980,743
23,760
Percent of
Total
-0.1
-0.7
-0.7
0.1
0.8
3.7
5.4
24.0
28.2
10.9
28.2
100.0
5
Average
(dollars)
Percent of
Total
Average
Federal Tax
6
Rate
7,243
17,157
26,340
34,645
42,462
55,725
74,990
115,620
221,654
482,190
1,916,595
95,383
0.2
1.7
3.0
3.2
3.4
8.6
8.3
27.5
23.9
7.0
13.7
100.0
-11.8
-11.7
-6.0
0.4
5.3
9.6
13.9
17.9
22.7
28.0
33.9
19.9
After-Tax Income
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law. Proposal would (a) repeal the tax deferral of contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined benefit
retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal penalty. Baseline
federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. For a description of TPC's current law baseline, see
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
28-Jul-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0106
Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach)
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2015 ¹
Detail Table - Elderly Tax Units
Expanded Cash Income
Level (thousands of
2015 dollars)
2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Benefit
3
Without
Benefit
0.0
*
0.9
3.8
6.3
13.0
19.9
23.3
43.4
60.4
56.0
9.8
100.0
100.0
99.1
96.2
93.7
87.0
80.1
76.7
56.6
39.6
44.0
90.2
Benefit as a
Percent of AfterTax Income
0.0
-0.1
-0.2
-0.6
-1.6
-2.6
-4.3
-5.6
-3.6
1.1
-1.7
-2.9
4
Share of
Total Benefit
0.0
0.1
0.4
1.1
3.1
11.8
17.1
44.7
16.0
-1.6
7.3
100.0
Average Benefit
Dollars
0
-7
-42
-199
-674
-1,475
-3,250
-6,334
-7,790
5,262
-34,133
-1,777
Share of Federal Taxes
Percent of
Federal Taxes
-0.4
-2.8
-6.4
-13.7
-26.1
-29.3
-31.8
-28.3
-12.2
2.7
-3.1
-14.0
With Provision
0.1
0.4
0.8
1.2
1.7
5.6
7.5
22.1
18.4
8.5
33.4
100.0
Average Federal Tax Rate6
Without
Provision
With
Provision
0.1
0.4
0.9
1.2
1.4
4.6
6.0
18.4
18.8
10.1
37.7
100.0
2.1
1.6
2.7
4.2
5.8
8.2
11.9
16.6
22.8
28.3
35.0
17.2
Without
Provision
2.1
1.5
2.6
3.6
4.3
5.8
8.1
11.9
20.1
29.0
33.9
14.8
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2015 ¹
Expanded Cash Income
Level (thousands of
2
2015 dollars)
Number
(thousands)
Percent of
Total
Average
(dollars)
Percent of
Total
Average
(dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
1,990
7,796
6,134
4,079
3,280
5,702
3,732
5,020
1,456
218
152
40,001
5.0
19.5
15.3
10.2
8.2
14.3
9.3
12.6
3.6
0.5
0.4
100.0
5,666
15,198
24,525
34,834
44,907
61,521
86,294
134,991
281,044
701,136
3,187,567
73,992
0.4
4.0
5.1
4.8
5.0
11.9
10.9
22.9
13.8
5.2
16.4
100.0
120
241
668
1,452
2,588
5,025
10,238
22,391
64,135
198,117
1,115,275
12,713
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
0.1
0.4
0.8
1.2
1.7
5.6
7.5
22.1
18.4
8.5
33.4
100.0
5
Average
(dollars)
Percent of
Total
Average
Federal Tax
6
Rate
5,546
14,956
23,857
33,381
42,319
56,496
76,056
112,600
216,910
503,018
2,072,292
61,279
0.5
4.8
6.0
5.6
5.7
13.1
11.6
23.1
12.9
4.5
12.9
100.0
2.1
1.6
2.7
4.2
5.8
8.2
11.9
16.6
22.8
28.3
35.0
17.2
After-Tax Income
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law. Proposal would (a) repeal the tax deferral of contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined benefit
retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal penalty. Baseline
federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. For a description of TPC's current law baseline, see
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.