14-Dec-15 PRELIMINARY RESULTS
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
http://www.taxpolicycenter.org
Expanded Cash Income
Percentile
2,3
With Tax Cut
Pct of Tax Units
Tax Units with Tax Increase or Cut
4
Avg Tax Cut
With Tax Increase
Pct of Tax Units
Avg Tax
Increase
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
0.8
7.9
24.0
36.6
15.0
14.8
22.8
9.4
3.7
5.2
10.4
-208
-280
-332
-484
-528
-414
-503
-541
-590
-1,446
-1,801
0.0
0.6
5.1
16.4
58.3
11.9
47.5
66.6
76.1
62.0
42.8
0
350
451
698
1,751
1,385
917
1,466
2,813
5,157
6,176
0.0
0.1
0.1
0.1
-0.4
-0.2
-0.2
-0.5
-0.7
-0.2
0.0
-0.4
-4.2
-10.8
-9.9
125.3
100.0
22.0
30.8
52.8
19.7
1.6
-2
-20
-56
-62
942
103
321
926
2,118
3,120
2,457
0.0
-0.1
-0.1
-0.1
0.3
0.1
0.2
0.4
0.5
0.1
0.0
4.2
8.3
13.7
17.4
26.6
20.5
20.5
22.6
26.3
34.2
35.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
Number of AMT Taxpayers (millions). Baseline: 4.3 Proposal: 4.9
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2016 ¹
Detail Table
Expanded Cash Income
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.8
7.9
24.0
36.6
15.0
14.8
0.0
0.6
5.1
16.4
58.3
11.9
22.8
9.4
3.7
5.2
10.4
47.5
66.6
76.1
62.0
42.8
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.1
0.1
0.1
-0.4
-0.2
-0.4
-4.2
-10.8
-9.9
125.3
100.0
-0.2
-0.5
-0.7
-0.2
0.0
22.0
30.8
52.8
19.7
1.6
Average Federal Tax Change
Dollars Percent
321
926
2,118
3,120
2,457
-2
-20
-56
-62
942
103
-0.3
-0.7
-0.7
-0.3
1.1
0.6
0.9
1.7
2.0
0.4
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.2
0.3
0.0
0.9
3.4
9.3
17.3
69.0
100.0
0.1
0.1
0.2
-0.1
-0.1
14.1
10.8
16.0
28.1
13.4
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.1
-0.1
0.3
0.1
4.2
8.3
13.7
17.4
26.6
20.5
0.2
0.4
0.5
0.1
0.0
20.5
22.6
26.3
34.2
35.7
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
47,691
37,422
33,984
28,418
23,750
172,532
12,233
5,942
4,447
1,129
115
27.6
21.7
19.7
16.5
13.8
100.0
7.1
3.4
2.6
0.7
0.1
13,336
33,359
61,542
107,903
336,456
86,987
173,085
248,145
420,979
2,239,143
10,045,915
4.2
8.3
13.9
20.4
53.2
100.0
14.1
9.8
12.5
16.8
7.7
568
2,782
8,456
18,784
88,524
17,747
35,184
55,136
108,599
763,369
3,579,846
0.9
3.4
9.4
17.4
68.7
100.0
14.1
10.7
15.8
28.1
13.5
12,768
30,577
53,086
89,120
247,931
69,241
137,901
193,009
312,380
1,475,774
6,466,069
5.1
9.6
15.1
21.2
49.3
100.0
14.1
9.6
11.6
13.9
6.3
4.3
8.3
13.7
17.4
26.3
20.4
20.3
22.2
25.8
34.1
35.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
Number of AMT Taxpayers (millions). Baseline: 4.3 Proposal: 4.9
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table
Expanded Cash Income
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.4
3.9
22.4
35.9
15.2
14.8
*
1.3
1.7
12.7
50.9
11.9
22.2
10.8
4.7
4.9
9.5
41.3
56.2
67.8
60.7
40.9
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.2
0.1
-0.4
-0.2
-0.1
-1.2
-14.9
-13.1
129.2
100.0
-0.2
-0.4
-0.6
-0.2
0.0
24.9
30.2
53.5
20.6
1.7
Average Federal Tax Change
Dollars Percent
286
714
1,660
2,787
2,279
0
-6
-77
-72
765
103
-0.8
-0.3
-1.2
-0.5
1.0
0.6
1.0
1.5
1.8
0.4
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.2
0.3
0.0
0.1
2.4
7.5
16.5
73.4
100.0
0.1
0.1
0.2
-0.1
-0.1
15.2
11.8
17.5
29.0
14.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.1
0.3
0.1
0.5
6.8
12.3
16.8
26.2
20.5
0.2
0.3
0.5
0.1
0.0
20.3
22.5
25.9
34.1
35.7
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
38,232
36,211
34,505
32,174
30,143
172,532
15,518
7,548
5,756
1,321
136
22.2
21.0
20.0
18.7
17.5
100.0
9.0
4.4
3.3
0.8
0.1
12,438
29,245
53,941
94,039
285,692
86,987
147,812
214,051
361,215
1,985,313
8,905,644
3.2
7.1
12.4
20.2
57.4
100.0
15.3
10.8
13.9
17.5
8.1
57
2,000
6,723
15,900
74,202
17,747
29,773
47,345
91,720
673,125
3,173,218
0.1
2.4
7.6
16.7
73.1
100.0
15.1
11.7
17.2
29.1
14.1
12,381
27,245
47,219
78,139
211,490
69,241
118,039
166,706
269,496
1,312,188
5,732,427
4.0
8.3
13.6
21.0
53.4
100.0
15.3
10.5
13.0
14.5
6.5
0.5
6.8
12.5
16.9
26.0
20.4
20.1
22.1
25.4
33.9
35.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
Number of AMT Taxpayers (millions). Baseline: 4.3 Proposal: 4.9
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.5
2.9
15.6
23.2
10.1
8.4
0.0
0.1
0.2
12.2
39.0
5.8
14.1
6.1
1.8
3.2
6.8
34.1
42.0
50.9
49.9
37.6
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.0
-0.3
-0.1
-0.5
-5.4
-25.7
4.2
127.3
100.0
-0.3
-0.4
-0.5
-0.2
-0.1
38.7
27.8
45.3
15.6
2.0
Average Federal Tax Change
Dollars Percent
216
402
954
1,907
1,978
-1
-7
-42
10
420
33
-0.1
-0.4
-0.8
0.1
0.9
0.4
1.0
1.2
1.5
0.3
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.2
-0.1
0.3
0.0
2.1
5.9
13.7
22.2
55.9
100.0
0.1
0.1
0.1
0.0
0.0
16.2
9.4
12.1
18.2
9.7
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
0.0
0.2
0.1
6.2
8.6
13.6
18.3
26.3
18.6
0.2
0.3
0.4
0.1
0.0
21.5
22.9
26.2
36.4
37.4
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
25,683
21,585
17,636
12,851
8,784
87,180
5,172
2,001
1,374
237
29
29.5
24.8
20.2
14.7
10.1
100.0
5.9
2.3
1.6
0.3
0.0
9,700
23,067
41,046
68,044
175,035
44,584
105,179
148,758
244,058
1,524,021
6,406,099
6.4
12.8
18.6
22.5
39.6
100.0
14.0
7.7
8.6
9.3
4.8
598
1,993
5,642
12,461
45,615
8,266
22,416
33,635
62,976
553,461
2,391,340
2.1
6.0
13.8
22.2
55.6
100.0
16.1
9.3
12.0
18.2
9.7
9,102
21,074
35,404
55,583
129,420
36,317
82,763
115,123
181,081
970,560
4,014,758
7.4
14.4
19.7
22.6
35.9
100.0
13.5
7.3
7.9
7.3
3.7
6.2
8.6
13.8
18.3
26.1
18.5
21.3
22.6
25.8
36.3
37.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
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
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.1
4.9
32.2
47.5
17.9
25.4
*
3.4
3.0
11.2
56.3
22.9
27.5
13.1
5.7
4.9
9.9
44.6
62.4
73.2
63.8
42.7
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.2
0.2
-0.4
-0.2
0.0
0.1
-10.7
-18.2
128.9
100.0
-0.2
-0.4
-0.6
-0.2
0.0
20.7
30.2
56.0
22.0
1.7
Average Federal Tax Change
Dollars Percent
-139
-163
0
1
927
242
314
832
1,898
3,031
2,448
0.0
0.0
-1.7
-0.9
1.1
0.7
0.9
1.6
1.9
0.4
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.2
0.3
0.0
-0.1
0.8
4.1
13.6
81.4
100.0
0.0
0.1
0.2
-0.1
-0.1
15.0
13.0
20.2
33.2
15.4
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.2
-0.1
0.3
0.2
-1.3
6.3
11.3
16.0
26.2
22.3
0.2
0.3
0.5
0.2
0.0
19.8
22.3
25.8
33.6
35.3
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
4,872
6,661
10,912
15,713
19,617
58,288
9,309
5,126
4,159
1,023
97
8.4
11.4
18.7
27.0
33.7
100.0
16.0
8.8
7.1
1.8
0.2
18,801
41,196
71,227
115,487
338,411
164,217
172,936
241,837
403,001
2,065,598
9,569,483
1.0
2.9
8.1
19.0
69.4
100.0
16.8
13.0
17.5
22.1
9.7
-235
2,578
8,194
18,618
87,643
36,401
33,980
53,138
101,902
690,920
3,373,039
-0.1
0.8
4.2
13.8
81.0
100.0
14.9
12.8
20.0
33.3
15.5
19,035
38,618
63,033
96,869
250,768
127,815
138,956
188,699
301,099
1,374,678
6,196,444
1.2
3.5
9.2
20.4
66.0
100.0
17.4
13.0
16.8
18.9
8.1
-1.3
6.3
11.5
16.1
25.9
22.2
19.7
22.0
25.3
33.5
35.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
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
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.2
5.0
23.0
30.1
12.1
10.8
0.1
2.6
4.0
20.3
52.1
6.7
16.3
4.9
2.6
15.0
13.5
47.2
52.5
78.4
56.7
36.9
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.0
-0.4
-0.1
-0.4
-9.1
-64.9
16.1
158.3
100.0
-0.4
-0.5
-0.7
-0.2
0.0
59.6
40.4
43.2
15.1
1.3
Average Federal Tax Change
Dollars Percent
420
767
1,726
2,698
2,101
0
-6
-64
28
703
21
0.0
-0.5
-0.9
0.2
1.2
0.3
1.4
1.7
2.0
0.4
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.3
-0.1
0.4
0.0
-8.2
6.6
24.1
32.4
45.0
100.0
0.2
0.1
0.1
0.0
0.0
14.8
8.2
7.5
14.5
8.3
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
0.0
0.3
0.0
-9.6
3.7
11.3
17.2
25.5
11.9
0.3
0.4
0.5
0.1
0.0
21.2
22.9
26.2
34.2
35.9
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
7,312
7,436
5,226
2,957
1,165
24,145
734
273
129
29
3
30.3
30.8
21.6
12.3
4.8
100.0
3.0
1.1
0.5
0.1
0.0
17,857
36,660
62,412
97,505
231,777
53,332
145,231
201,115
337,575
2,238,359
11,305,434
10.1
21.2
25.3
22.4
21.0
100.0
8.3
4.3
3.4
5.0
2.8
-1,713
1,365
7,117
16,727
58,374
6,313
30,410
45,291
86,585
763,247
4,060,765
-8.2
6.7
24.4
32.5
44.6
100.0
14.7
8.1
7.4
14.5
8.4
19,570
35,295
55,295
80,778
173,403
47,020
114,821
155,824
250,990
1,475,112
7,244,669
12.6
23.1
25.5
21.0
17.8
100.0
7.4
3.7
2.9
3.8
2.0
-9.6
3.7
11.4
17.2
25.2
11.8
20.9
22.5
25.7
34.1
35.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-3).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
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
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
*
4.2
30.1
40.8
11.8
17.2
0.1
4.3
5.7
22.8
72.3
20.0
18.3
6.6
3.3
6.4
11.0
64.8
78.0
84.6
70.1
50.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.2
0.1
-0.5
-0.2
0.0
0.4
-10.1
-4.3
114.0
100.0
-0.4
-0.7
-0.8
-0.2
0.0
26.3
28.6
43.3
15.9
1.3
Average Federal Tax Change
Dollars Percent
-117
-51
0
4
1,427
233
652
1,471
2,699
3,857
3,145
0.0
0.2
-1.3
-0.2
1.4
0.9
1.6
2.3
2.2
0.5
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.2
-0.2
0.4
0.0
-1.3
1.4
7.1
16.7
76.0
100.0
0.1
0.2
0.2
-0.1
-0.1
14.9
11.4
18.5
31.2
14.2
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.2
0.0
0.4
0.2
-8.8
4.3
12.3
17.2
27.1
20.8
0.3
0.5
0.6
0.2
0.0
20.8
23.2
26.9
34.2
35.3
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
10,234
10,415
10,074
9,897
9,368
50,272
4,730
2,275
1,882
482
47
20.4
20.7
20.0
19.7
18.6
100.0
9.4
4.5
3.7
1.0
0.1
18,852
40,647
74,066
126,678
388,066
123,886
195,763
280,240
473,252
2,453,236
11,186,185
3.1
6.8
12.0
20.1
58.4
100.0
14.9
10.2
14.3
19.0
8.4
-1,667
1,733
9,191
21,860
103,661
25,527
40,041
63,617
124,816
834,989
3,940,058
-1.3
1.4
7.2
16.9
75.7
100.0
14.8
11.3
18.3
31.3
14.3
20,519
38,914
64,875
104,819
284,405
98,359
155,722
216,623
348,436
1,618,247
7,246,127
4.3
8.2
13.2
21.0
53.9
100.0
14.9
10.0
13.3
15.8
6.8
-8.8
4.3
12.4
17.3
26.7
20.6
20.5
22.7
26.4
34.0
35.2
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 current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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
Table T15-0226
Option 3: Replace the Mortgage Interest Deduction with a 15 Percent Non-refundable Credit
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Elderly Tax Units
Expanded Cash Income
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.5
2.6
20.3
40.7
20.8
15.9
0.0
0.1
0.1
3.9
29.1
5.2
29.1
16.4
6.6
4.0
8.4
19.0
32.7
48.0
51.8
35.6
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.2
-0.2
0.0
-1.0
-17.3
-133.9
-207.9
460.1
100.0
0.0
-0.1
-0.4
-0.2
0.0
5.8
76.8
224.1
153.5
16.7
Average Federal Tax Change
Dollars Percent
-1
-7
-61
-120
316
10
8
215
883
2,019
1,666
-0.3
-1.1
-2.1
-1.2
0.4
0.1
0.0
0.6
1.1
0.3
0.1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.2
0.3
0.0
0.2
1.2
4.8
13.0
80.3
100.0
0.0
0.1
0.2
0.1
0.0
13.2
10.7
15.4
41.0
22.6
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.1
0.1
0.0
1.7
2.6
5.9
11.7
26.0
17.8
0.0
0.1
0.3
0.1
0.0
17.1
20.4
24.6
34.9
36.5
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile
2,3
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
6,761
10,923
9,410
7,396
6,233
41,164
3,290
1,531
1,087
325
43
16.4
26.5
22.9
18.0
15.1
100.0
8.0
3.7
2.6
0.8
0.1
11,850
24,835
47,748
83,981
277,400
76,347
130,820
191,752
321,464
2,015,265
8,080,211
2.6
8.6
14.3
19.8
55.0
100.0
13.7
9.3
11.1
20.9
11.0
197
642
2,885
9,948
71,666
13,565
22,416
38,813
78,335
701,931
2,947,959
0.2
1.3
4.9
13.2
80.0
100.0
13.2
10.6
15.2
40.9
22.6
11,652
24,194
44,863
74,033
205,734
62,782
108,404
152,939
243,130
1,313,334
5,132,252
3.1
10.2
16.3
21.2
49.6
100.0
13.8
9.1
10.2
16.5
8.5
1.7
2.6
6.0
11.9
25.8
17.8
17.1
20.2
24.4
34.8
36.5
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 current law. Proposal would replace the deduction for mortgage interest with a 15 percent non-refundable credit subject to current law limits
($1,000,000 of debt on a primary residence or second home, and $100,000 in home equity loans). Estimates are static and do not assume that taxpayers would adjust their investment 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.