23-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.
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
1
Distribution of Federal Tax Change by Cash Income Level, 2009
Summary Table
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 3
With Tax Cut
86.5
97.9
98.0
99.2
99.5
99.6
99.7
95.5
88.2
94.3
98.2
96.4
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
6.3
4.1
2.9
2.3
1.9
1.6
1.2
0.9
0.5
0.8
1.4
1.4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
4.6
11.2
10.1
7.9
6.8
13.7
9.7
14.5
5.0
3.0
13.1
100.0
-343
-594
-659
-697
-742
-807
-878
-939
-1,138
-3,836
-32,175
-849
Average Federal Tax Rate5
Change (%
Points)
-6.0
-3.9
-2.6
-2.0
-1.6
-1.3
-1.0
-0.7
-0.4
-0.6
-1.0
-1.1
Under the
Proposal
-0.7
0.7
6.7
11.3
14.2
16.5
18.2
20.8
24.0
26.2
29.3
19.9
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: 4.6
Proposal: 4.6
(1) Calendar year. Baseline is current law plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT
liabilty. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal
includes 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). Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or
veterans benefits. The one-time payment is a reduction to any allowable Making Work Pay credit. The Earned Income Tax Credit percentage for families with three
of more qualifying children is increased to 45 percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for
single and head of houshold tax units. The Child Tax Credit refundability earnings threshold is reduced to $3,000.
The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds
are increased to AGI $80,000 ($160,000 for joint filers), textbooks are made a qualifying expense and forty percent of the credit is made refundable. Up to $2,400 of
unemployment benefits are excluded from gross income. The AMT exemptions for 2009 are increased to $46,700 ($70,950 for joint filers) and personal credits are
made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increase in
limitation on expensing of certain depreciable business assets, and a 5 year carryback of 2008 and 2009 NOLswith exception for TARP recipients. The Home Buyers
Credit is equal to 10% of house value up to a maximum of $8,000 ($4,000 for couples filing separate) for first time homebuyers. Credit is phased out for AGI in
excess of $75,000 ($150,000 for couple filling jointly).
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table
Cash Income Level
(thousands of 2008
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Tax Cut
3
With Tax
Increase
86.5
97.9
98.0
99.2
99.5
99.6
99.7
95.5
88.2
94.3
98.2
96.4
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
4
Income
6.3
4.1
2.9
2.3
1.9
1.6
1.2
0.9
0.5
0.8
1.4
1.4
Share of Total
Federal Tax
Change
4.6
11.2
10.1
7.9
6.8
13.7
9.7
14.5
5.0
3.0
13.1
100.0
Average Federal Tax Change
Dollars
Percent
-343
-594
-659
-697
-742
-807
-878
-939
-1,138
-3,836
-32,175
-849
-113.0
-84.0
-27.9
-14.8
-10.2
-7.2
-5.2
-3.2
-1.6
-2.1
-3.3
-5.4
Share of Federal Taxes
Change (%
Points)
-0.3
-0.6
-0.5
-0.3
-0.2
-0.2
0.0
0.6
0.7
0.3
0.5
0.0
Under the
Proposal
0.0
0.1
1.5
2.6
3.4
10.0
10.1
25.1
17.6
8.0
21.6
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.0
-3.9
-2.6
-2.0
-1.6
-1.3
-1.0
-0.7
-0.4
-0.6
-1.0
-1.1
Under the
Proposal
-0.7
0.7
6.7
11.3
14.2
16.5
18.2
20.8
24.0
26.2
29.3
19.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
Cash Income Level
(thousands of 2008
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
17,204
24,101
19,493
14,384
11,749
21,662
14,107
19,712
5,636
989
519
150,241
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)
303
707
2,361
4,724
7,265
11,200
17,016
29,652
71,306
185,616
970,498
15,848
Average AfterTax Income 4
(Dollars)
5,401
14,474
22,953
30,831
38,573
51,838
71,774
108,502
220,580
509,452
2,229,468
59,441
Average
Federal Tax
Rate 5
5.3
4.7
9.3
13.3
15.9
17.8
19.2
21.5
24.4
26.7
30.3
21.1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
1.0
3.9
5.0
5.0
5.1
12.6
11.3
24.0
13.9
5.6
13.0
100.0
0.2
0.7
1.9
2.9
3.6
10.2
10.1
24.6
16.9
7.7
21.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 4.6
Proposal: 4.6
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
1
Distribution of Federal Tax Change by Cash Income Level, 2009
Detail Table - Single Tax Units
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 3
With Tax Cut
With Tax
Increase
86.7
97.8
98.0
99.0
99.4
99.5
99.7
81.2
90.4
95.1
97.9
95.2
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
4
Income
5.8
3.0
2.2
1.9
1.6
1.3
1.0
0.6
0.9
1.3
1.9
1.7
Share of Total
Federal Tax
Change
10.8
17.1
13.2
10.0
8.8
15.0
6.0
5.1
4.2
2.3
7.5
100.0
Average Federal Tax Change
Dollars
Percent
-306
-406
-472
-542
-572
-652
-647
-609
-2,031
-6,192
-38,712
-546
-67.6
-32.4
-13.0
-8.4
-6.4
-4.8
-3.1
-1.9
-2.7
-3.1
-3.6
-6.1
Share of Federal Taxes
Change (%
Points)
-0.6
-0.9
-0.5
-0.2
0.0
0.3
0.4
0.8
0.4
0.1
0.3
0.0
Under the
Proposal
0.3
2.3
5.7
7.1
8.3
19.2
12.0
17.3
10.0
4.6
13.1
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.4
-2.7
-1.9
-1.5
-1.3
-1.1
-0.7
-0.5
-0.7
-0.9
-1.2
-1.3
Under the
Proposal
2.6
5.6
12.5
16.6
18.3
20.6
22.8
23.8
25.3
27.5
32.8
20.0
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
Tax Units 3
Number
(thousands)
Percent of
Total
12,556
14,909
9,879
6,530
5,421
8,162
3,264
2,958
730
130
69
64,958
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)
452
1,251
3,629
6,456
8,953
13,477
20,737
32,607
76,691
197,336
1,074,825
8,948
Average AfterTax Income 4
(Dollars)
5,252
13,766
21,614
29,110
36,844
48,673
67,237
101,811
218,589
496,868
2,081,902
33,104
Average
Federal Tax
Rate 5
7.9
8.3
14.4
18.2
19.6
21.7
23.6
24.3
26.0
28.4
34.1
21.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
3.1
9.5
9.9
8.8
9.3
18.5
10.2
14.0
7.4
3.0
6.7
100.0
1.0
3.2
6.2
7.3
8.4
18.9
11.7
16.6
9.6
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
1
Distribution of Federal Tax Change by Cash Income Level, 2009
Detail Table - Married Tax Units Filing Jointly
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 3
With Tax Cut
With Tax
Increase
74.9
96.6
97.4
99.2
99.6
99.8
99.8
99.9
88.2
94.4
98.3
97.4
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
4
Income
6.5
5.2
3.8
3.0
2.6
1.8
1.4
0.9
0.5
0.7
1.4
1.2
Share of Total
Federal Tax
Change
0.9
4.4
6.1
5.5
5.4
13.1
13.0
22.8
6.5
4.0
18.1
100.0
Average Federal Tax Change
Dollars
Percent
-301
-796
-924
-998
-1,069
-974
-1,004
-1,041
-988
-3,450
-30,331
-1,212
-114.9
-172.2
-74.1
-34.9
-20.7
-10.4
-6.5
-3.6
-1.4
-1.9
-3.2
-4.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.3
-0.2
-0.2
-0.4
-0.2
0.3
0.7
0.3
0.3
0.0
Under the
Proposal
0.0
-0.1
0.1
0.5
1.0
5.2
8.8
28.6
21.2
9.6
25.1
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.1
-5.1
-3.6
-2.8
-2.3
-1.5
-1.1
-0.8
-0.3
-0.5
-1.0
-1.0
Under the
Proposal
-0.8
-2.1
1.3
5.2
8.9
13.1
16.3
20.1
23.8
25.9
28.8
20.8
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
Tax Units 3
Number
(thousands)
Percent of
Total
2,093
3,937
4,757
3,946
3,659
9,688
9,341
15,817
4,725
827
430
59,479
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)
262
462
1,248
2,859
5,177
9,369
15,566
29,060
70,390
183,650
936,102
27,286
Average AfterTax Income 4
(Dollars)
4,642
15,247
24,109
32,782
40,790
54,835
73,726
110,212
220,762
511,746
2,211,954
97,869
Average
Federal Tax
Rate 5
5.3
2.9
4.9
8.0
11.3
14.6
17.4
20.9
24.2
26.4
29.7
21.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
0.2
1.0
2.0
2.2
2.6
9.1
11.8
30.0
17.9
7.3
16.3
100.0
0.0
0.1
0.4
0.7
1.2
5.6
9.0
28.3
20.5
9.4
24.8
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
1
Distribution of Federal Tax Change by Cash Income Level, 2009
Detail Table - Head of Household Tax Units
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 3
With Tax Cut
With Tax
Increase
95.2
98.9
98.7
99.4
99.7
99.7
99.3
65.8
78.5
85.6
96.5
97.4
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
4
Income
8.4
6.3
3.3
2.1
1.7
1.5
0.9
0.2
0.5
0.7
1.4
2.2
Share of Total
Federal Tax
Change
7.8
27.9
20.3
13.3
8.5
13.7
4.4
1.0
0.9
0.4
1.9
100.0
Average Federal Tax Change
Dollars
Percent
-577
-1,006
-805
-670
-656
-747
-628
-226
-1,213
-3,399
-30,400
-769
126.6
122.4
-134.1
-19.6
-10.3
-7.0
-3.6
-0.8
-1.7
-1.9
-3.3
-13.9
Share of Federal Taxes
Change (%
Points)
-1.4
-5.0
-2.9
-0.6
0.5
2.2
2.1
2.8
1.1
0.4
1.0
0.0
Under the
Proposal
-2.2
-8.2
-0.8
8.8
12.0
29.5
19.2
20.9
8.5
3.3
9.0
100.0
Average Federal Tax Rate5
Change (%
Points)
-9.0
-6.6
-3.2
-1.9
-1.4
-1.2
-0.7
-0.2
-0.4
-0.5
-1.0
-1.9
Under the
Proposal
-16.1
-12.0
-0.8
7.8
12.5
16.0
19.4
22.6
23.7
26.1
29.4
11.8
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
Tax Units 3
Number
(thousands)
Percent of
Total
2,406
4,961
4,512
3,554
2,315
3,290
1,254
786
132
21
11
23,292
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)
-455
-822
600
3,414
6,393
10,662
17,570
29,659
71,978
182,182
932,783
5,521
Average AfterTax Income 4
(Dollars)
6,867
16,079
24,803
31,987
39,418
51,271
70,006
100,860
226,092
501,683
2,137,240
34,830
Average
Federal Tax
Rate 5
-7.1
-5.4
2.4
9.6
14.0
17.2
20.1
22.7
24.2
26.6
30.4
13.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
2.0
9.8
13.8
14.0
11.3
20.8
10.8
9.8
3.7
1.3
2.9
100.0
-0.9
-3.2
2.1
9.4
11.5
27.3
17.1
18.1
7.4
2.9
8.0
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2008
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
With Tax Cut
3
With Tax
Increase
87.2
99.0
99.4
99.7
99.7
99.8
99.8
97.2
83.9
91.3
97.6
97.4
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
4
Income
9.4
7.2
4.4
3.0
2.5
1.9
1.4
0.9
0.3
0.5
1.2
1.5
Share of Total
Federal Tax
Change
3.1
12.4
11.6
8.5
7.1
13.5
10.9
16.8
3.2
2.0
10.7
100.0
Average Federal Tax Change
Dollars
Percent
-623
-1,221
-1,119
-978
-1,017
-985
-1,010
-998
-648
-2,402
-27,340
-1,126
91.6
87.1
1,263.3
-35.0
-17.7
-10.0
-6.3
-3.4
-0.9
-1.3
-2.8
-5.8
Share of Federal Taxes
Change (%
Points)
-0.2
-0.8
-0.7
-0.4
-0.3
-0.4
-0.1
0.7
1.1
0.4
0.7
0.0
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.4
-1.6
-0.8
1.0
2.0
7.5
9.9
28.9
21.5
9.4
22.7
100.0
-10.4
-7.9
-4.4
-2.8
-2.2
-1.6
-1.1
-0.7
-0.2
-0.4
-0.9
-1.2
-21.8
-16.9
-4.8
5.1
10.3
14.1
16.8
20.1
24.4
27.0
29.6
19.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
Cash Income Level
(thousands of 2008
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,701
5,494
5,603
4,726
3,756
7,394
5,839
9,103
2,690
442
212
48,094
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)
-680
-1,402
-89
2,796
5,735
9,872
15,987
28,984
71,024
189,292
969,825
19,468
Average AfterTax Income 4
(Dollars)
6,662
16,880
25,487
32,753
40,115
53,348
73,136
110,031
217,689
503,751
2,209,563
75,813
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-11.4
-9.1
-0.4
7.9
12.5
15.6
17.9
20.9
24.6
27.3
30.5
20.4
0.4
1.9
3.1
3.7
3.8
10.2
11.4
27.6
17.0
6.7
14.7
100.0
0.5
2.5
3.9
4.2
4.1
10.8
11.7
27.5
16.1
6.1
12.9
100.0
-0.2
-0.8
-0.1
1.4
2.3
7.8
10.0
28.2
20.4
8.9
22.0
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0116
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2008
2
dollars)
With Tax Cut
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
86.4
96.8
96.2
98.7
99.6
100.0
99.9
99.9
99.9
100.0
100.0
97.2
Percent of Tax Units
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
4
Income
3.2
1.8
1.4
1.2
1.1
1.1
1.0
1.1
1.2
1.5
2.0
1.3
Share of Total
Federal Tax
Change
2.4
7.5
5.6
3.7
3.5
10.7
8.5
16.4
12.2
7.1
22.5
100.0
Average Federal Tax Change
Dollars
Percent
-202
-265
-329
-410
-480
-619
-788
-1,214
-2,666
-7,603
-42,200
-827
-111.9
-66.6
-26.1
-19.5
-13.6
-8.6
-6.2
-4.9
-3.9
-4.1
-4.3
-5.9
Share of Federal Taxes
Change (%
Points)
-0.1
-0.4
-0.3
-0.2
-0.1
-0.2
0.0
0.2
0.4
0.2
0.5
0.0
Under the
Proposal
0.0
0.2
1.0
1.0
1.4
7.2
8.0
20.3
18.9
10.6
31.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-3.1
-1.8
-1.3
-1.2
-1.0
-1.0
-0.9
-0.9
-0.9
-1.1
-1.4
-1.1
Under the
Proposal
-0.3
0.9
3.8
4.8
6.6
10.4
13.4
17.3
21.9
25.8
29.7
17.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
Cash Income Level
(thousands of 2008
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,765
6,689
4,053
2,142
1,714
4,095
2,542
3,191
1,082
221
126
28,639
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)
181
398
1,264
2,108
3,531
7,233
12,621
25,035
68,099
187,072
974,103
13,915
Average AfterTax Income 4
(Dollars)
6,396
14,731
23,627
33,134
42,490
56,212
75,630
112,766
230,346
509,103
2,160,323
61,806
Average
Federal Tax
Rate 5
2.8
2.6
5.1
6.0
7.7
11.4
14.3
18.2
22.8
26.9
31.1
18.4
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
1.0
5.6
5.4
4.0
4.1
13.0
10.9
20.3
14.1
6.4
15.4
100.0
0.1
0.7
1.3
1.1
1.5
7.4
8.1
20.0
18.5
10.4
30.8
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.