4-Nov-08
http://www.taxpolicycenter.org
PRELIMINARY RESULTS
T08-0253
Income Subject to Tax and Effective Marginal Tax Rates
in the Regular Income Tax and the AMT Among AMT Taxpayers, Current Law 1
2008
Cash Income Class
(thousands of
2008$) 2
Less than 30
30-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Regular Tax
AMT
Average
Adjustments
and
Preferences4
0.0
0.0
87.5
94.4
94.4
65.6
6.5
5.8
58.4
100.0
100.0
12.5
5.7
5.6
34.4
93.5
94.2
41.7
1,017,530
861,977
36,676
35,370
35,710
35,154
52,208
204,415
46,641
Percent With More Income
Subject to Tax In3
Percent With a Higher
Marginal Tax Rate In 5
Regular Tax
AMT
0.0
0.0
0.0
5.8
1.8
14.4
65.6
62.4
22.6
100.0
100.0
100.0
93.8
95.6
85.2
33.7
33.9
76.5
Average Effective Marginal
Tax Rate (percent)6
Before AMT
-19.2
0.0
16.0
25.1
26.8
30.7
31.7
27.9
29.9
After AMT
17.0
26.0
26.5
31.9
31.5
34.0
29.9
27.5
32.6
2009
Cash Income Class
(thousands of
2008$) 2
Less than 30
30-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Regular Tax
AMT
Average
Adjustments
and
Preferences4
99.7
93.9
97.3
98.9
97.8
52.0
9.3
8.7
87.2
0.3
6.1
2.8
1.1
2.3
48.1
90.7
91.3
12.8
20,023
15,231
18,416
18,795
21,101
28,732
51,137
202,724
23,684
Percent With More Income
Subject to Tax In3
Percent With a Higher
Marginal Tax Rate In 5
Regular Tax
AMT
0.0
1.0
2.8
1.3
5.2
15.8
69.9
61.3
7.9
100.0
96.1
94.8
95.7
92.8
83.8
28.9
34.9
90.1
Average Effective Marginal
Tax Rate (percent)6
Before AMT
15.2
15.4
18.2
18.1
25.0
29.2
31.2
27.9
23.8
After AMT
26.0
23.6
24.9
25.0
28.1
32.8
28.8
27.5
28.0
2010
Cash Income Class
(thousands of
2008$) 2
Less than 30
30-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Regular Tax
AMT
Average
Adjustments
and
Preferences4
99.6
95.6
97.0
99.0
97.4
48.1
9.0
6.5
86.4
0.4
4.4
3.0
1.0
2.6
51.9
91.0
93.6
13.6
20,786
15,525
18,451
18,328
20,919
29,562
54,091
201,963
23,755
Percent With More Income
Subject to Tax In3
Percent With a Higher
Marginal Tax Rate In 5
Regular Tax
AMT
0.0
0.0
4.1
1.3
7.4
12.8
66.5
52.8
8.5
100.0
98.6
93.5
94.9
90.7
86.2
27.9
34.3
89.2
Average Effective Marginal
Tax Rate (percent)6
Before AMT
14.1
16.0
18.2
18.6
25.0
28.7
31.0
27.8
23.7
After AMT
24.3
25.7
24.6
25.6
28.1
32.7
28.7
27.6
28.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) AMT taxpayers include those with AMT liability from Form 6251, with lost credits, and with reduced deductions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. Includes both filing and nonfiling units but excludes those that are dependents of other taxpayers. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Income subject to tax for the regular income tax is taxable income; for the AMT it is AMTI net of the AMT exemption.
(4) Amounts are in nominal dollars to facilitate comparison with AMT exemption amounts. For 2007, the AMT exemption is $66,250 for
married couples filing jointly and surviving spouses; $44,350 for unmarried individuals other than surviving spouses; and $33,125 for married
individuals filing separately. For 2008 and 2010, the exemption amounts are $45,000, $33,750, and $22,500.
(5) The marginal tax rate for each return is calculated by adding $1,000 to wages, recomputing income tax net of refundable credits, and
dividing the resulting change in tax liability by 1,000.
(6) Marginal tax rates represent a simple average across individuals.