13-Feb-09 PRELIMINARY RESULTS http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
1
Cash Income Level
(thousands of 2008 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 Tax Cut
61.2
62.7
77.7
84.6
86.6
86.4
87.5
77.0
17.4
5.8
2.6
73.7
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
3.4
1.9
1.6
1.3
1.1
0.9
0.7
0.5
0.0
0.0
0.0
0.6
Share of Total
Federal Tax
Change
18.9
0.7
0.1
0.0
100.0
5.6
11.7
12.4
10.2
8.9
18.0
13.3
Average
Federal Tax
Change ($)
-182
-272
-357
-400
-428
-467
-531
-538
-68
-35
-16
-374
Average Federal Tax Rate
Change (%
Points)
-3.2
-1.8
-1.4
-1.1
-0.9
-0.7
-0.6
-0.4
0.0
0.0
0.0
-0.5
Proposal
5
Under the
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference
Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
Number of AMT Taxpayers (millions). Baseline: 30.3 Proposal: 30.3
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf.
Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400 ($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.
1.3
2.3
7.7
12.1
14.9
17.1
19.1
22.4
26.0
26.8
30.3
21.1

13-Feb-09
Cash Income Level
(thousands of 2008 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
PRELIMINARY RESULTS
Table T09-0103
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Level, 2009
1
Detail Table
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
61.2
62.7
77.7
84.6
86.6
86.4
87.5
77.0
17.4
5.8
2.6
73.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
1.1
0.9
0.7
0.5
0.0
0.0
3.4
1.9
1.6
1.3
0.0
0.6
Share of Total
Federal Tax
Change
5.6
11.7
12.4
10.2
8.9
18.0
13.3
18.9
0.7
0.1
0.0
100.0
Average Federal Tax Change
Dollars Percent
-182
-272
-357
-400
-428
-467
-531
-538
-68
-35
-16
-374
-71.2
-43.4
-15.4
-8.5
-5.9
-4.2
-3.0
-1.7
-0.1
0.0
0.0
-2.3
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.1
-0.3
-0.3
-0.2
-0.1
-0.2
-0.1
0.2
0.4
0.2
0.5
0.0
3.4
9.8
10.0
25.5
17.9
7.7
0.1
0.4
1.6
2.6
21.1
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-3.2
-1.8
-1.4
-1.1
-0.9
-0.7
-0.6
-0.4
0.0
0.0
0.0
-0.5
1.3
2.3
7.7
12.1
14.9
17.1
19.1
22.4
26.0
26.8
30.3
21.1
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009
1
Cash Income Level
(thousands of 2008 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
17,204
24,101
19,493
14,384
11,749
21,662
14,107
19,712
5,636
989
519
150,241
Tax Units
Number
(thousands)
3
Percent of
Total
11.5
16.0
13.0
9.6
7.8
14.4
9.4
13.1
3.8
0.7
0.4
100.0
Average
Income
(Dollars)
5,704
15,181
25,314
35,555
45,838
63,039
88,790
138,154
291,886
695,069
3,199,967
75,289
Average
Federal Tax
Burden
(Dollars)
256
626
2,316
4,686
7,246
11,249
17,442
31,419
75,871
186,291
970,681
16,274
Average After-
Tax Income
(Dollars)
5,448
14,555
22,999
30,868
38,591
51,789
71,348
106,735
216,014
508,778
2,229,286
59,015
4
Average
Federal Tax
Rate
5
22.7
26.0
26.8
30.3
21.6
4.5
4.1
9.2
13.2
15.8
17.9
19.6
Share of Pre-
Tax Income
Percent of
Total
0.9
3.2
4.4
4.5
4.8
12.1
11.1
24.1
14.5
6.1
14.7
100.0
Share of Post-
Tax Income
Percent of
Total
1.1
4.0
5.1
5.0
5.1
12.7
11.4
23.7
13.7
5.7
13.1
100.0
Share of
Federal Taxes
Percent of
Total
0.2
0.6
1.9
2.8
3.5
10.0
10.1
25.3
17.5
7.5
20.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3 Proposal: 30.3
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.

13-Feb-09
Cash Income Level
(thousands of 2008 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
PRELIMINARY RESULTS
Table T09-0103
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Level, 2009
1
Detail Table - Single Tax Units
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
60.4
53.2
73.8
83.9
85.7
83.8
80.9
16.7
4.6
3.9
1.3
66.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
0.9
0.7
0.4
0.0
0.0
0.0
3.4
1.5
1.3
1.1
0.0
0.7
Share of Total
Federal Tax
Change
14.4
19.4
18.0
13.8
11.5
16.8
5.2
0.7
0.1
0.0
0.0
100.0
Average Federal Tax Change
Dollars Percent
-178
-201
-282
-326
-329
-318
-245
-34
-12
-14
-3
-238
-44.3
-17.5
-7.9
-5.1
-3.7
-2.4
-1.2
-0.1
0.0
0.0
0.0
-2.7
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.4
-0.5
-0.3
-0.2
-0.1
0.1
0.2
0.4
0.3
0.1
0.4
0.0
8.2
19.0
11.9
17.2
10.1
4.6
0.5
2.5
5.8
7.1
13.1
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-3.1
-1.3
-1.1
-0.9
-0.7
-0.5
-0.3
0.0
0.0
0.0
0.0
-0.6
3.9
6.3
13.1
17.1
18.7
21.1
23.3
24.5
26.5
28.4
34.1
20.7
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009
1
Cash Income Level
(thousands of 2008 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
12,556
14,909
9,879
6,530
5,421
8,162
3,264
2,958
730
130
69
64,958
Tax Units
Number
(thousands)
3
Percent of
Total
19.3
23.0
15.2
10.1
8.4
12.6
5.0
4.6
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,704
15,017
25,243
35,566
45,797
62,150
87,974
134,418
295,280
694,203
3,156,727
42,053
Average
Federal Tax
Burden
(Dollars)
402
1,149
3,576
6,420
8,911
13,453
20,775
32,935
78,182
197,451
1,074,793
8,931
Average After-
Tax Income
(Dollars)
5,303
13,868
21,667
29,146
36,886
48,696
67,198
101,484
217,099
496,752
2,081,933
33,122
4
Average
Federal Tax
Rate
5
24.5
26.5
28.4
34.1
21.2
7.0
7.7
14.2
18.1
19.5
21.7
23.6
Share of Pre-
Tax Income
Percent of
Total
2.6
8.2
9.1
8.5
9.1
18.6
10.5
14.6
7.9
3.3
7.9
100.0
Share of Post-
Tax Income
Percent of
Total
3.1
9.6
10.0
8.9
9.3
18.5
10.2
14.0
7.4
3.0
6.7
100.0
Share of
Federal Taxes
Percent of
Total
0.9
3.0
6.1
7.2
8.3
18.9
11.7
16.8
9.8
4.4
12.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.

13-Feb-09
Cash Income Level
(thousands of 2008 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
PRELIMINARY RESULTS
Table T09-0103
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Level, 2009
1
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
48.0
64.8
69.1
73.7
81.5
85.1
88.7
91.5
19.8
6.2
2.9
75.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
1.5
1.2
0.9
0.6
0.0
0.0
3.5
2.9
2.1
1.7
0.0
0.6
Share of Total
Federal Tax
Change
7.0
19.0
19.4
32.5
1.2
0.1
1.1
5.5
7.5
6.7
0.0
100.0
Average Federal Tax Change
Dollars Percent
-164
-446
-505
-544
-613
-631
-668
-662
-79
-40
-19
-542
-71.4
-113.3
-42.5
-19.5
-12.0
-6.8
-4.2
-2.1
-0.1
0.0
0.0
-1.9
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.2
-0.1
0.4
0.2
0.5
0.0
1.0
5.1
8.7
29.2
21.6
9.2
0.0
0.0
0.2
0.5
24.4
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-3.3
-2.8
-2.0
-1.5
-1.3
-1.0
-0.8
-0.5
0.0
0.0
0.0
-0.4
1.3
-0.3
2.7
6.3
9.8
13.6
17.2
21.9
25.9
26.5
29.7
22.2
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009
1
Cash Income Level
(thousands of 2008 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
2,093
3,937
4,757
3,946
3,659
9,688
9,341
15,817
4,725
827
430
59,479
Tax Units
Number
(thousands)
3
Percent of
Total
3.5
6.6
8.0
6.6
6.2
16.3
15.7
26.6
7.9
1.4
0.7
100.0
Average
Income
(Dollars)
4,904
15,709
25,357
35,641
45,966
64,204
89,292
139,272
291,151
695,396
3,148,057
125,155
Average
Federal Tax
Burden
(Dollars)
229
394
1,189
2,787
5,111
9,347
16,031
31,089
75,511
184,457
936,352
28,295
Average After-
Tax Income
(Dollars)
4,674
15,315
24,168
32,854
40,856
54,857
73,260
108,183
215,640
510,939
2,211,704
96,860
4
Average
Federal Tax
Rate
5
22.3
25.9
26.5
29.7
22.6
4.7
2.5
4.7
7.8
11.1
14.6
18.0
Share of Pre-
Tax Income
Percent of
Total
0.1
0.8
1.6
1.9
2.3
8.4
11.2
29.6
18.5
7.7
18.2
100.0
Share of Post-
Tax Income
Percent of
Total
0.2
1.1
2.0
2.3
2.6
9.2
11.9
29.7
17.7
7.3
16.5
100.0
Share of
Federal Taxes
Percent of
Total
0.0
0.1
0.3
0.7
1.1
5.4
8.9
29.2
21.2
9.1
23.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.

13-Feb-09
Cash Income Level
(thousands of 2008 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
PRELIMINARY RESULTS
Table T09-0103
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Level, 2009
1
Detail Table - Head of Household Tax Units
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
76.4
87.9
94.2
97.1
95.9
96.6
95.1
22.5
4.7
0.3
0.7
88.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
1.0
0.7
0.4
0.1
0.0
0.0
3.2
2.1
1.5
1.2
0.0
1.0
Share of Total
Federal Tax
Change
6.9
21.8
21.4
17.4
11.2
15.9
4.9
0.5
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars Percent
-223
-340
-367
-379
-375
-375
-300
-45
-14
-1
-1
-333
44.7
39.9
-62.9
-11.1
-5.8
-3.4
-1.6
-0.1
0.0
0.0
0.0
-5.9
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.5
-1.6
-1.2
-0.5
0.0
0.7
0.8
1.1
0.5
0.2
0.5
0.0
-1.4
-4.8
0.8
8.6
11.3
28.0
18.4
19.8
7.9
3.0
8.3
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-3.5
-2.2
-1.5
-1.1
-0.8
-0.6
-0.3
0.0
0.0
0.0
0.0
-0.8
-11.2
-7.8
0.9
8.6
13.3
17.1
20.8
24.1
25.0
26.7
30.4
13.3
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009
1
Cash Income Level
(thousands of 2008 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
2,406
4,961
4,512
3,554
2,315
3,290
1,254
786
132
21
11
23,292
Tax Units
Number
(thousands)
3
Percent of
Total
10.3
21.3
19.4
15.3
9.9
14.1
5.4
3.4
0.6
0.1
0.1
100.0
Average
Income
(Dollars)
6,412
15,257
25,403
35,401
45,811
61,934
87,576
130,519
298,070
683,864
3,070,023
40,351
Average
Federal Tax
Burden
(Dollars)
-498
-853
584
3,404
6,446
10,968
18,533
31,442
74,413
182,398
932,802
5,680
Average After-
Tax Income
(Dollars)
6,910
16,111
24,820
31,996
39,365
50,965
69,043
99,077
223,657
501,466
2,137,221
34,672
4
Average
Federal Tax
Rate
5
24.1
25.0
26.7
30.4
14.1
-7.8
-5.6
2.3
9.6
14.1
17.7
21.2
Share of Pre-
Tax Income
Percent of
Total
1.6
8.1
12.2
13.4
11.3
21.7
11.7
10.9
4.2
1.5
3.6
100.0
Share of Post-
Tax Income
Percent of
Total
2.1
9.9
13.9
14.1
11.3
20.8
10.7
9.7
3.7
1.3
2.9
100.0
Share of
Federal Taxes
Percent of
Total
-0.9
-3.2
2.0
9.2
11.3
27.3
17.6
18.7
7.5
2.9
7.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.

13-Feb-09
Cash Income Level
(thousands of 2008 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
PRELIMINARY RESULTS
Table T09-0103
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Level, 2009
1
Detail Table - Tax Units with Children
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
80.2
95.4
97.9
98.8
98.5
98.0
98.7
93.0
17.7
4.0
0.8
90.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
1.4
1.2
1.0
0.6
0.0
0.0
3.7
2.6
2.0
1.6
0.0
0.7
Share of Total
Federal Tax
Change
2.6
9.6
10.9
9.6
8.3
18.0
15.8
24.3
0.7
0.1
0.0
100.0
Average Federal Tax Change
Dollars Percent
-248
-445
-499
-518
-567
-621
-692
-681
-66
-28
-4
-531
35.6
31.4
506.0
-18.5
-9.8
-6.2
-4.1
-2.2
-0.1
0.0
0.0
-2.6
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.1
-0.3
-0.3
-0.2
-0.2
-0.3
-0.2
0.1
0.5
0.2
0.6
0.0
-0.3
-1.1
-0.4
1.1
2.0
7.3
9.8
29.5
21.5
8.8
21.5
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-4.1
-2.9
-2.0
-1.5
-1.2
-1.0
-0.8
-0.5
0.0
0.0
0.0
-0.6
-15.8
-12.0
-2.4
6.4
11.4
15.0
18.1
22.4
26.5
27.4
30.5
20.9
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009
1
Cash Income Level
(thousands of 2008 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
2,701
5,494
5,603
4,726
3,756
7,394
5,839
9,103
2,690
442
212
48,094
Tax Units
Number
(thousands)
3
Percent of
Total
5.6
11.4
11.7
9.8
7.8
15.4
12.1
18.9
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
5,981
15,478
25,399
35,550
45,850
63,220
89,123
139,015
288,713
693,043
3,179,388
95,281
Average
Federal Tax
Burden
(Dollars)
-695
-1,416
-99
2,791
5,780
10,073
16,789
31,755
76,653
189,979
969,924
20,441
Average After-
Tax Income
(Dollars)
6,677
16,894
25,497
32,758
40,071
53,147
72,334
107,260
212,060
503,064
2,209,464
74,839
4
Average
Federal Tax
Rate
5
-11.6
-9.2
-0.4
7.9
12.6
15.9
18.8
22.8
26.6
27.4
30.5
21.5
Share of Pre-
Tax Income
Percent of
Total
0.4
1.9
3.1
3.7
3.8
10.2
11.4
27.6
17.0
6.7
14.7
100.0
Share of Post-
Tax Income
Percent of
Total
0.5
2.6
4.0
4.3
4.2
10.9
11.7
27.1
15.9
6.2
13.0
100.0
Share of
Federal Taxes
Percent of
Total
-0.2
-0.8
-0.1
1.3
2.2
7.6
10.0
29.4
21.0
8.6
20.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.

13-Feb-09
Cash Income Level
(thousands of 2008 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
PRELIMINARY RESULTS
Table T09-0103
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Level, 2009
1
Detail Table - Elderly Tax Units
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
11.0
11.0
21.9
22.9
27.4
38.9
42.0
40.2
11.4
5.7
2.3
24.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
0.2
0.3
0.3
0.2
0.0
0.0
0.5
0.3
0.3
0.3
0.0
0.2
Share of Total
Federal Tax
Change
3.1
9.3
11.7
6.8
5.5
21.9
17.5
22.1
1.8
0.2
0.1
100.0
Average Federal Tax Change
Dollars Percent
-90
-150
-193
-194
-46
-29
-32
-39
-81
-89
-11
-98
-99.2
-19.0
-7.3
-4.7
-2.7
-2.1
-1.5
-0.8
-0.1
0.0
0.0
-0.7
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.1
0.0
0.0
-0.1
-0.1
0.0
0.1
0.1
0.2
0.0
1.4
7.1
8.0
20.5
19.4
10.4
0.0
0.3
1.0
1.0
30.9
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-0.5
-0.3
-0.3
-0.3
-0.2
-0.2
-0.2
-0.1
0.0
0.0
0.0
-0.1
7.0
10.8
14.1
18.5
23.9
27.0
0.0
1.1
4.1
5.2
31.1
18.3
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009
1
Cash Income Level
(thousands of 2008 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
2,765
6,689
4,053
2,142
1,714
4,095
2,542
3,191
1,082
221
126
28,639
Tax Units
Number
(thousands)
3
Percent of
Total
9.7
23.4
14.2
7.5
6.0
14.3
8.9
11.1
3.8
0.8
0.4
100.0
Average
Income
(Dollars)
6,577
15,129
24,891
35,242
46,021
63,445
88,251
137,801
298,445
696,175
3,134,426
75,721
Average
Federal Tax
Burden
(Dollars)
32
204
1,103
1,912
3,306
7,012
12,612
25,695
71,261
187,808
974,196
13,971
Average After-
Tax Income
(Dollars)
6,545
14,925
23,787
33,331
42,715
56,433
75,639
112,106
227,185
508,367
2,160,230
61,750
4
Average
Federal Tax
Rate
5
18.7
23.9
27.0
31.1
18.5
0.5
1.4
4.4
5.4
7.2
11.1
14.3
Share of Pre-
Tax Income
Percent of
Total
0.8
4.7
4.7
3.5
3.6
12.0
10.3
20.3
14.9
7.1
18.2
100.0
Share of Post-
Tax Income
Percent of
Total
1.0
5.7
5.5
4.0
4.1
13.1
10.9
20.2
13.9
6.4
15.4
100.0
Share of
Federal Taxes
Percent of
Total
0.0
0.3
1.1
1.0
1.4
7.2
8.0
20.5
19.3
10.4
30.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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.