14-Dec-15
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 T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2016 ¹
Summary Table
Tax Units with Tax Increase or Cut 4
Expanded Cash Income
Percentile2,3
With Tax Cut
Pct of Tax Units
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Avg Tax Cut
With Tax Increase
Avg Tax
Pct of Tax Units
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0.0
0.0
0.1
0.8
6.2
1.0
0
0
416
1,217
1,760
1,669
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.4
9.7
89.8
100.0
0
0
0
10
108
17
0.0
0.0
0.0
0.0
0.0
0.0
4.2
8.3
13.7
17.4
26.6
20.5
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
2.6
4.9
13.0
24.3
25.8
1,181
1,601
1,824
2,459
2,743
0.0
0.0
-0.1
0.0
0.0
13.0
16.4
36.8
23.6
2.9
30
79
236
598
709
0.0
0.0
0.1
0.0
0.0
20.5
22.6
26.4
34.3
35.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
Number of AMT Taxpayers (millions). Baseline: 4.9
Proposal: 4.9
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars):
20% $22,823; 40% $44,550; 60% $79,661; 80% $141,303; 90% $207,758; 95% $294,348; 99% $720,886; 99.9% $3,672,221.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2016 ¹
Detail Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.8
6.2
1.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.4
9.7
89.8
100.0
0
0
0
10
108
17
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.9
3.4
9.3
17.3
69.0
100.0
0.0
0.0
0.0
0.0
0.0
0.0
4.2
8.3
13.7
17.4
26.6
20.5
0.0
0.0
0.0
0.0
0.0
2.6
4.9
13.0
24.3
25.8
0.0
0.0
-0.1
0.0
0.0
13.0
16.4
36.8
23.6
2.9
30
79
236
598
709
0.1
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
14.1
10.8
16.0
28.1
13.4
0.0
0.0
0.1
0.0
0.0
20.5
22.6
26.4
34.3
35.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
47,691
37,422
33,984
28,418
23,750
172,532
27.6
21.7
19.7
16.5
13.8
100.0
13,336
33,359
61,542
107,903
336,456
86,987
4.2
8.3
13.9
20.4
53.2
100.0
566
2,762
8,400
18,721
89,466
17,850
0.9
3.4
9.3
17.3
69.0
100.0
12,770
30,597
53,142
89,182
246,989
69,137
5.1
9.6
15.1
21.3
49.2
100.0
4.2
8.3
13.7
17.4
26.6
20.5
12,233
5,942
4,447
1,129
115
7.1
3.4
2.6
0.7
0.1
173,085
248,145
420,979
2,239,143
10,045,915
14.1
9.8
12.5
16.8
7.7
35,505
56,063
110,717
766,488
3,582,303
14.1
10.8
16.0
28.1
13.4
137,580
192,082
310,262
1,472,654
6,463,612
14.1
9.6
11.6
13.9
6.3
20.5
22.6
26.3
34.2
35.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
6
Under the
Proposal
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
Number of AMT Taxpayers (millions). Baseline: 4.9
Proposal: 4.9
* Less than 0.05
(1) Calendar year. Baseline is a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20%
$22,823; 40% $44,550; 60% $79,661; 80% $141,303; 90% $207,758; 95% $294,348; 99% $720,886; 99.9% $3,672,221.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.8
4.8
1.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.0
9.8
89.1
100.0
0
0
1
9
85
17
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
2.3
7.4
16.5
73.4
100.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
6.8
12.3
16.8
26.3
20.5
0.0
0.0
0.0
0.0
0.0
2.1
3.4
9.7
22.2
23.6
0.0
0.0
-0.1
0.0
0.0
15.0
14.9
34.3
25.0
3.3
28
56
170
541
682
0.1
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
15.2
11.8
17.5
29.0
14.0
0.0
0.0
0.1
0.0
0.0
20.4
22.5
25.9
34.1
35.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
38,232
36,211
34,505
32,174
30,143
172,532
22.2
21.0
20.0
18.7
17.5
100.0
12,438
29,245
53,941
94,039
285,692
86,987
3.2
7.1
12.4
20.2
57.4
100.0
57
1,994
6,646
15,827
74,967
17,850
0.1
2.4
7.5
16.5
73.4
100.0
12,381
27,251
47,296
78,212
210,725
69,137
4.0
8.3
13.7
21.1
53.3
100.0
0.5
6.8
12.3
16.8
26.2
20.5
15,518
7,548
5,756
1,321
136
9.0
4.4
3.3
0.8
0.1
147,812
214,051
361,215
1,985,313
8,905,644
15.3
10.8
13.9
17.5
8.1
30,059
48,059
93,380
675,912
3,175,496
15.2
11.8
17.5
29.0
14.0
117,753
165,992
267,836
1,309,401
5,730,148
15.3
10.5
12.9
14.5
6.5
20.3
22.5
25.9
34.1
35.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
Number of AMT Taxpayers (millions). Baseline: 4.9
Proposal: 4.9
* Less than 0.05
(1) Calendar year. Baseline is a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732; 95%
$174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.8
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.7
1.9
97.4
100.0
0
0
0
0
32
3
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.1
5.9
13.6
22.1
55.9
100.0
0.0
0.0
0.0
0.0
0.0
0.0
6.2
8.6
13.6
18.3
26.3
18.6
0.0
0.0
0.0
0.0
0.0
0.8
0.9
4.5
16.2
19.0
0.0
0.0
0.0
0.0
0.0
21.1
8.3
35.2
32.9
5.7
12
12
74
400
564
0.1
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
16.2
9.4
12.2
18.2
9.7
0.0
0.0
0.0
0.0
0.0
21.5
22.9
26.2
36.5
37.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
29.5
24.8
20.2
14.7
10.1
100.0
9,700
23,067
41,046
68,044
175,035
44,584
6.4
12.8
18.6
22.5
39.6
100.0
597
1,986
5,600
12,470
46,035
8,300
2.1
5.9
13.7
22.2
55.9
100.0
9,103
21,081
35,446
55,573
129,000
36,284
7.4
14.4
19.8
22.6
35.8
100.0
6.2
8.6
13.6
18.3
26.3
18.6
5,172
2,001
1,374
237
29
5.9
2.3
1.6
0.3
0.0
105,179
148,758
244,058
1,524,021
6,406,099
14.0
7.7
8.6
9.3
4.8
22,633
34,037
63,931
555,368
2,393,318
16.2
9.4
12.1
18.2
9.7
82,547
114,721
180,127
968,653
4,012,781
13.5
7.3
7.8
7.2
3.7
21.5
22.9
26.2
36.4
37.4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
25,683
21,585
17,636
12,851
8,784
87,180
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* Less than 0.05
(1) Calendar year. Baseline is a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732; 95%
$174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Married Tax Units Filing Jointly
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.2
6.2
2.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
10.0
89.2
100.0
0
0
2
16
111
42
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.8
4.1
13.6
81.4
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-1.3
6.3
11.3
16.0
26.2
22.3
0.0
0.0
0.0
0.0
0.0
2.8
4.4
11.6
23.7
25.4
0.0
0.0
-0.1
0.0
0.0
14.1
15.8
34.9
24.3
2.9
37
75
204
579
732
0.1
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
15.0
13.0
20.2
33.2
15.3
0.0
0.0
0.1
0.0
0.0
19.9
22.4
25.8
33.6
35.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
8.4
11.4
18.7
27.0
33.7
100.0
18,801
41,196
71,227
115,487
338,411
164,217
1.0
2.9
8.1
19.0
69.4
100.0
-235
2,579
8,055
18,455
88,570
36,643
-0.1
0.8
4.1
13.6
81.4
100.0
19,035
38,616
63,172
97,032
249,842
127,573
1.3
3.5
9.3
20.5
65.9
100.0
-1.3
6.3
11.3
16.0
26.2
22.3
9,309
5,126
4,159
1,023
97
16.0
8.8
7.1
1.8
0.2
172,936
241,837
403,001
2,065,598
9,569,483
16.8
13.0
17.5
22.1
9.7
34,294
53,970
103,801
693,951
3,375,487
15.0
13.0
20.2
33.2
15.4
138,642
187,868
299,201
1,371,647
6,193,996
17.4
13.0
16.7
18.9
8.1
19.8
22.3
25.8
33.6
35.3
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
4,872
6,661
10,912
15,713
19,617
58,288
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* Less than 0.05
(1) Calendar year. Baseline is a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732; 95%
$174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Head of Household Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.1
4.2
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.8
30.0
62.2
100.0
0
0
2
11
56
4
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
-8.2
6.6
24.1
32.4
45.0
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-9.6
3.7
11.3
17.2
25.5
11.9
0.0
0.0
0.0
0.0
0.0
3.0
3.5
7.7
26.0
26.7
0.0
0.0
-0.1
0.0
0.0
14.0
12.1
20.1
16.0
2.0
20
46
162
576
677
0.1
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
14.8
8.2
7.5
14.5
8.3
0.0
0.0
0.1
0.0
0.0
21.2
22.9
26.2
34.2
35.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
7,312
7,436
5,226
2,957
1,165
24,145
30.3
30.8
21.6
12.3
4.8
100.0
17,857
36,660
62,412
97,505
231,777
53,332
10.1
21.2
25.3
22.4
21.0
100.0
-1,713
1,359
7,052
16,755
59,077
6,334
-8.2
6.6
24.1
32.4
45.0
100.0
19,570
35,301
55,359
80,750
172,700
46,998
12.6
23.1
25.5
21.0
17.7
100.0
-9.6
3.7
11.3
17.2
25.5
11.9
734
273
129
29
3
3.0
1.1
0.5
0.1
0.0
145,231
201,115
337,575
2,238,359
11,305,434
8.3
4.3
3.4
5.0
2.8
30,829
46,058
88,311
765,945
4,062,866
14.8
8.2
7.5
14.5
8.3
114,402
155,057
249,264
1,472,414
7,242,568
7.4
3.7
2.8
3.8
2.0
21.2
22.9
26.2
34.2
35.9
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Percent of
Total
Average (dollars)
Percent of
Total
After-Tax Income 5
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* Less than 0.05
(1) Calendar year. Baseline is a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732; 95%
$174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Tax Units with Children
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.9
9.0
2.1
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
1.4
13.8
84.8
100.0
0
0
3
25
162
36
0.0
0.0
0.0
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
-1.3
1.4
7.1
16.7
76.0
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-8.8
4.3
12.3
17.2
27.1
20.8
0.0
0.0
0.0
0.0
0.0
4.6
7.2
16.9
30.4
32.5
0.0
-0.1
-0.1
-0.1
0.0
15.8
16.2
33.2
19.7
2.3
60
127
316
732
901
0.2
0.2
0.3
0.1
0.0
0.0
0.0
0.0
0.0
0.0
14.9
11.4
18.6
31.2
14.2
0.0
0.1
0.1
0.0
0.0
20.8
23.3
27.0
34.2
35.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
20.4
20.7
20.0
19.7
18.6
100.0
18,852
40,647
74,066
126,678
388,066
123,886
3.1
6.8
12.0
20.1
58.4
100.0
-1,667
1,737
9,074
21,809
105,087
25,761
-1.3
1.4
7.1
16.7
76.0
100.0
20,519
38,909
64,993
104,870
282,978
98,125
4.3
8.2
13.3
21.0
53.7
100.0
-8.8
4.3
12.3
17.2
27.1
20.8
4,730
2,275
1,882
482
47
9.4
4.5
3.7
1.0
0.1
195,763
280,240
473,252
2,453,236
11,186,185
14.9
10.2
14.3
19.0
8.4
40,693
65,088
127,515
838,846
3,943,203
14.9
11.4
18.5
31.2
14.2
155,070
215,152
345,738
1,614,390
7,242,982
14.9
9.9
13.2
15.8
6.9
20.8
23.2
26.9
34.2
35.3
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
10,234
10,415
10,074
9,897
9,368
50,272
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* 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 a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732; 95%
$174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.
14-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0228
Reduce the the Maximum Amount of Debt Eligible for the 15 Percent Non-refundable Credit from $1,000,000 to $500,000
Baseline: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Elderly Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
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 Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
*
0.2
2.4
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.8
5.2
93.0
100.0
0
0
1
2
47
8
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.2
4.8
13.0
80.3
100.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
2.6
5.9
11.7
26.0
17.8
0.0
0.0
0.0
0.0
0.0
0.7
1.1
5.3
16.5
18.9
0.0
0.0
0.0
0.0
0.0
9.3
9.3
27.4
47.0
8.3
9
19
79
456
609
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
13.2
10.7
15.4
41.0
22.6
0.0
0.0
0.0
0.0
0.0
17.2
20.4
24.7
35.0
36.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
16.4
26.5
22.9
18.0
15.1
100.0
11,850
24,835
47,748
83,981
277,400
76,347
2.6
8.6
14.3
19.8
55.0
100.0
197
635
2,824
9,828
71,982
13,575
0.2
1.2
4.8
13.0
80.3
100.0
11,653
24,201
44,923
74,153
205,418
62,772
3.1
10.2
16.4
21.2
49.6
100.0
1.7
2.6
5.9
11.7
26.0
17.8
3,290
1,531
1,087
325
43
8.0
3.7
2.6
0.8
0.1
130,820
191,752
321,464
2,015,265
8,080,211
13.7
9.3
11.1
20.9
11.0
22,424
39,027
79,217
703,950
2,949,625
13.2
10.7
15.4
41.0
22.6
108,397
152,724
242,247
1,311,315
5,130,586
13.8
9.1
10.2
16.5
8.5
17.1
20.4
24.6
34.9
36.5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
6,761
10,923
9,410
7,396
6,233
41,164
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* 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 a 15 percent nonrefundable credit on the first $1,000,000 of debt. Proposal would reduce the maximum amount of debt eligible for the 15 percent nonrefundable credit to $500,000 of debt on a primary residence, second home, and/or a home equity loan. Estimates are static and do not assume that taxpayers would adjust their inves
tment portfolio and pay down their mortgage balance if their tax benefit from mortgage interest was reduced. 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) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732; 95%
$174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) 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.
(6) 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.