16‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0190
Exempt All Capital Income from Taxation
Baseline: Current Law
Distribution by Cash Income Level, 2011 1
Cash Income Level (thousands of 2011 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
Cash Income Level (thousands of 2011 dollars) Total Returns 3
Number (thousands)
Returns with Zero Income Tax Liability 3
Percent
24,457
28,266
20,763
17,188
13,691
19,752
13,684
18,322
5,366
907
433
163,869
14.9
17.2
12.7
10.5
8.4
12.1
8.4
11.2
3.3
0.6
0.3
100.0
24,282
22,802
12,623
7,088
4,186
2,857
723
381
81
22
7
76,077
13.4
38.4
31.8
22.6
31.1
22.8
16.2
21.5
23.8
24.1
10.4
26.1
Retuns with Zero Income Tax Liability Only Under Proposal 3
Proposal
All Returns Elderly (thousands)
(Percent)
24,269
22,866
12,817
7,526
4,497
3,397
1,015
721
276
87
57
78,544
13.4
38.4
32.4
26.1
34.7
32.5
36.1
49.4
44.2
46.7
37.8
27.7
Tax Units with Tax Increase or Cut 3
With Tax Cut
2
Pct of Tax Units
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
Baseline
All Returns Elderly (thousands)
(Percent)
0.1
2.9
10.2
22.1
29.0
46.0
57.3
71.2
78.3
83.7
91.9
28.1
Avg Tax Cut
15.4
68.8
117.6
147.2
216.0
407.9
557.6
1,187.7
5,494.1
18,698.0
153,913.6
2,690.1
**
82
222
462
324
560
304
346
195
65
50
2,609
Average Federal Tax Change ($)
Elderly (Percent)
***
20.4
62.5
81.1
82.1
82.6
82.0
79.2
52.5
54.4
41.5
74.4
All Returns ***
‐240
‐391
‐429
‐961
‐1,766
‐3,741
‐7,846
‐24,055
‐61,164
‐474,918
‐14,521
Elderly ***
‐201
‐310
‐413
‐938
‐1,795
‐3,930
‐8,678
‐24,354
‐62,890
‐390,671
‐9,008
Elderly Tax Units with Tax Increase or Cut 3
With Tax Increase
Avg Tax Pct of Tax Units
Increase
0.1
0.4
1.2
2.0
2.5
5.1
7.8
11.1
16.4
11.9
5.9
3.8
Returns
All Returns (thousands)
601.1
374.7
274.7
371.9
340.8
406.5
386.3
489.3
741.9
1,496.6
8,502.5
544.8
Average Federal Tax Change ($)
0
‐1
‐9
‐25
‐54
‐167
‐289
‐792
‐4,182
‐15,463
‐141,005
‐735
With Tax Cut
Pct of Elderly
Avg Tax Cut
Tax Units
*
0.3
9.1
38.5
42.3
68.2
79.9
84.0
88.5
90.6
96.2
35.5
***
169.2
235.2
242.9
437.9
855.7
1,365.1
3,289.8
10,960.0
34,282.4
196,138.7
3,996.1
With Tax Increase
Pct of Elderly Avg Tax Increase
Tax Units
*
0.1
0.7
2.2
2.4
5.4
7.0
9.3
8.1
3.9
2.8
3.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05.
** Less than 0.5.
*** Insufficent data.
(1) Calendar year. Baseline is current law. Proposal would exclude interest income, dividends, and gains from sales of capital assets from gross income and repeal the deduction for investment interest.
(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.
***
194.8
216.5
333.9
372.5
531.4
435.7
447.6
716.0
1,956.5
12,169.4
515.4
Average Federal Tax Change for Elderly ($)
0
0
‐20
‐86
‐176
‐554
‐1,060
‐2,723
‐9,643
‐30,970
‐188,386
‐1,402