A more detailed version of this table including baseline values and additional distribution measures
is available on the second worksheet in the Excel file and second page of the pdf.
5-Nov-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0321
AMT Patch in H.R. 3996 and Include Dividends and Capital Gains Above $50,000 ($100,000 Joint) as an AMT Preference
Distribution of Federal Tax Change by Cash Income Level, 2007 1
Summary Table
Cash Income Level
(thousands of 2006 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
0.0
0.0
0.0
0.5
2.8
9.1
36.1
70.4
82.5
15.4
4.7
15.2
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.5
5.9
21.7
34.4
0.4
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.1
0.5
1.3
1.3
-1.2
-4.6
0.0
Share of Total
Federal Tax
Change
0.0
0.0
-0.2
-1.2
-9.2
-76.1
-262.7
-1,237.4
-695.9
243.5
2,139.1
100.0
Average
Federal Tax
Change ($)
0
0
0
-1
-14
-65
-364
-1,349
-2,829
5,863
98,155
12
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.4
-1.0
-1.0
0.9
3.2
0.0
Under the
Proposal
4.1
4.4
9.6
13.9
16.5
18.5
20.0
22.4
25.7
28.3
35.1
21.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
Number of AMT Taxpayers (millions). Baseline:
23.4
Proposal:
3.7
(1) Calendar year. Baseline is current law, proposal: allows personal non-refundable credits regardless of tentative AMT; increases the 2007 AMT exemption to
$44,350 for singles and $66,250 for married couples filing a joint return; for AMT purposes, qualified dividends and long-term capital gains in excess of $50,000
($100,000 for joint returns) are taxed at ordinary AMT rates.
(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) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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.
5-Nov-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0321
AMT Patch in H.R. 3996 and Include Dividends and Capital Gains Above $50,000 ($100,000 Joint) as an AMT Preference
1
Distribution of Federal Tax Change by Cash Income Level, 2007
Detail Table
Cash Income Level
(thousands of 2006
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.5
2.8
9.1
36.1
70.4
82.5
15.4
4.7
15.2
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.5
5.9
21.7
34.4
0.4
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.1
0.5
1.3
1.3
-1.2
-4.6
0.0
Share of Total
Federal Tax
Change
0.0
0.0
-0.2
-1.2
-9.2
-76.1
-262.7
-1,237.4
-695.9
243.5
2,139.1
100.0
Average Federal Tax Change
Dollars
0
0
0
-1
-14
-65
-364
-1,349
-2,829
5,863
98,155
12
Percent
0.0
0.0
0.0
0.0
-0.2
-0.6
-2.0
-4.2
-3.6
3.1
9.9
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-1.1
-0.6
0.2
1.8
0.0
Under the
Proposal
0.2
0.8
2.3
3.5
4.3
11.5
10.7
23.9
15.7
6.9
20.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.4
-1.0
-1.0
0.9
3.2
0.0
Under the
Proposal
4.1
4.4
9.6
13.9
16.5
18.5
20.0
22.4
25.7
28.3
35.1
21.7
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2007
Cash Income Level
(thousands of 2006
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 3
Number
(thousands)
18,608
25,761
20,224
15,244
12,157
21,294
13,139
16,685
4,475
756
396
149,332
Percent of
Total
12.5
17.3
13.5
10.2
8.1
14.3
8.8
11.2
3.0
0.5
0.3
100.0
Average
Income
(Dollars)
5,699
15,189
25,240
35,555
45,638
62,764
88,142
137,212
293,234
692,259
3,113,319
66,439
Average
Federal Tax
Burden
(Dollars)
231
660
2,429
4,952
7,529
11,703
17,963
32,136
78,133
189,965
995,145
14,401
Average AfterTax Income 4
(Dollars)
5,468
14,529
22,812
30,603
38,109
51,062
70,179
105,076
215,101
502,294
2,118,173
52,039
Average
Federal Tax
Rate 5
4.1
4.4
9.6
13.9
16.5
18.7
20.4
23.4
26.7
27.4
32.0
21.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.1
3.9
5.1
5.5
5.6
13.5
11.7
23.1
13.2
5.3
12.4
100.0
1.3
4.8
5.9
6.0
6.0
14.0
11.9
22.6
12.4
4.9
10.8
100.0
0.2
0.8
2.3
3.5
4.3
11.6
11.0
24.9
16.3
6.7
18.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
Number of AMT Taxpayers (millions). Baseline:
23.4
Proposal:
3.7
(1) Calendar year. Baseline is current law, proposal: allows personal non-refundable credits regardless of tentative AMT; increases the 2007 AMT exemption to $44,350 for singles and $66,250 for married
couples filing a joint return; for AMT purposes, qualified dividends and long-term capital gains in excess of $50,000 ($100,000 for joint returns) are taxed at ordinary AMT rates.
(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) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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.