15-Sep-10
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 T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Summary Table
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.6
0.2
0.0
0.1
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
23.4
79.7
91.5
1.7
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-1.9
-4.7
-0.7
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.4
15.4
81.2
100.0
Average
Federal Tax
Change ($)
0
0
0
0
0
0
0
0
389
9,999
103,863
432
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.4
3.3
0.6
Under the
Proposal
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.6
27.0
33.0
21.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 4.3
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a
20 percent rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for
5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions (Pease) and the personal exemption phaseout
(PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top
statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and
two personal exemptions for married couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of
the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.6
0.2
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
23.4
79.7
91.5
1.7
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-1.9
-4.7
-0.7
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.4
15.4
81.2
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
389
9,999
103,863
432
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
5.6
11.3
2.7
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.3
-0.3
-0.7
-0.4
0.2
1.6
0.0
Under the
Proposal
0.2
0.7
1.9
2.9
3.6
10.0
9.8
24.8
16.9
7.8
21.3
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.4
3.3
0.6
Under the
Proposal
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.6
27.0
33.0
21.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
16,958
24,305
21,133
16,074
12,909
22,702
14,431
20,606
5,930
1,048
531
157,348
Percent of
Total
10.8
15.5
13.4
10.2
8.2
14.4
9.2
13.1
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,723
15,533
25,808
36,190
46,615
64,099
90,195
141,257
296,062
704,969
3,114,004
76,169
Average
Federal Tax
Burden
(Dollars)
304
704
2,265
4,677
7,231
11,320
17,466
30,771
72,402
180,073
922,369
15,843
Average AfterTax Income 4
(Dollars)
5,419
14,829
23,543
31,513
39,384
52,780
72,729
110,485
223,660
524,896
2,191,635
60,325
Average
Federal Tax
Rate 5
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.5
25.5
29.6
20.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.2
4.6
4.9
5.0
12.1
10.9
24.3
14.7
6.2
13.8
100.0
1.0
3.8
5.2
5.3
5.4
12.6
11.1
24.0
14.0
5.8
12.3
100.0
0.2
0.7
1.9
3.0
3.7
10.3
10.1
25.4
17.2
7.6
19.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 4.3
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
4.4
0.3
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
38.1
78.3
88.3
0.7
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-2.1
-4.6
-0.4
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.2
16.1
76.7
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
822
10,566
92,746
131
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.1
5.5
9.6
1.4
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.3
-0.2
-0.3
0.0
0.2
0.9
0.0
Under the
Proposal
0.9
3.0
6.0
7.4
8.4
18.7
11.9
17.6
9.4
4.4
12.3
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.5
3.1
0.3
Under the
Proposal
8.5
8.4
13.3
17.4
19.3
21.6
23.7
24.2
25.6
29.1
35.5
21.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
12,161
14,889
11,204
7,555
6,018
8,766
3,599
3,384
787
138
75
68,932
17.6
21.6
16.3
11.0
8.7
12.7
5.2
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,710
15,384
25,667
36,120
46,555
63,234
89,193
137,406
300,163
697,814
2,972,435
43,878
Average
Federal Tax
Burden
(Dollars)
482
1,286
3,405
6,301
8,993
13,661
21,116
33,293
75,869
192,529
963,339
9,173
Average AfterTax Income 4
(Dollars)
5,228
14,097
22,262
29,819
37,562
49,573
68,077
104,113
224,294
505,285
2,009,095
34,705
Average
Federal Tax
Rate 5
8.5
8.4
13.3
17.4
19.3
21.6
23.7
24.2
25.3
27.6
32.4
20.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
7.6
9.5
9.0
9.3
18.3
10.6
15.4
7.8
3.2
7.3
100.0
2.7
8.8
10.4
9.4
9.5
18.2
10.2
14.7
7.4
2.9
6.3
100.0
0.9
3.0
6.0
7.5
8.6
18.9
12.0
17.8
9.5
4.2
11.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.2
0.3
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
20.6
79.9
92.0
3.5
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-1.9
-4.7
-0.9
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.7
15.7
81.6
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
303
9,851
103,315
898
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
5.5
11.5
3.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.2
-0.3
-0.9
-0.6
0.2
1.9
0.0
Under the
Proposal
0.0
0.1
0.3
0.7
1.2
5.3
8.4
28.4
20.7
9.6
25.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.4
3.4
0.7
Under the
Proposal
4.8
2.7
4.5
7.6
10.4
14.2
17.5
21.2
24.4
26.6
32.5
22.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,172
4,097
4,842
4,391
4,095
9,883
9,149
16,193
4,941
876
435
61,357
3.5
6.7
7.9
7.2
6.7
16.1
14.9
26.4
8.1
1.4
0.7
100.0
Average
Income
(Dollars)
4,766
16,031
25,959
36,302
46,760
65,241
90,792
142,545
295,420
706,519
3,075,014
126,020
Average
Federal Tax
Burden
(Dollars)
226
437
1,176
2,743
4,884
9,270
15,843
30,234
71,829
178,277
895,520
27,207
Average AfterTax Income 4
(Dollars)
4,540
15,593
24,783
33,559
41,876
55,971
74,949
112,311
223,591
528,242
2,179,494
98,813
Average
Federal Tax
Rate 5
4.8
2.7
4.5
7.6
10.4
14.2
17.5
21.2
24.3
25.2
29.1
21.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.9
1.6
2.1
2.5
8.3
10.7
29.9
18.9
8.0
17.3
100.0
0.2
1.1
2.0
2.4
2.8
9.1
11.3
30.0
18.2
7.6
15.6
100.0
0.0
0.1
0.3
0.7
1.2
5.5
8.7
29.3
21.3
9.4
23.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
21.4
77.4
93.7
0.3
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-1.9
-5.0
-0.2
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.0
16.6
79.4
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
380
9,916
104,589
58
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
6.0
11.7
1.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.2
-0.2
0.0
0.1
0.7
0.0
Under the
Proposal
-0.9
-3.1
1.8
9.2
11.3
27.4
17.6
18.7
7.5
3.0
7.6
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.4
3.5
0.1
Under the
Proposal
-7.8
-5.7
2.1
9.6
14.1
17.4
20.3
22.9
24.1
25.6
33.6
13.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,483
5,029
4,757
3,767
2,449
3,559
1,389
877
150
24
11
24,547
10.1
20.5
19.4
15.4
10.0
14.5
5.7
3.6
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,647
15,579
25,971
36,157
46,569
63,082
89,214
132,993
294,130
686,382
2,985,055
41,760
Average
Federal Tax
Burden
(Dollars)
-520
-891
539
3,466
6,561
10,957
18,085
30,391
70,440
165,957
897,212
5,746
Average AfterTax Income 4
(Dollars)
7,167
16,470
25,432
32,691
40,008
52,125
71,128
102,602
223,690
520,424
2,087,843
36,014
Average
Federal Tax
Rate 5
-7.8
-5.7
2.1
9.6
14.1
17.4
20.3
22.9
24.0
24.2
30.1
13.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
7.6
12.1
13.3
11.1
21.9
12.1
11.4
4.3
1.6
3.2
100.0
2.0
9.4
13.7
13.9
11.1
21.0
11.2
10.2
3.8
1.4
2.6
100.0
-0.9
-3.2
1.8
9.3
11.4
27.7
17.8
18.9
7.5
2.8
6.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
20.7
86.8
96.7
2.3
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-2.2
-5.3
-0.8
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.7
16.9
80.4
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
290
11,296
115,018
600
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
6.0
12.2
3.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.9
-0.5
0.2
1.8
0.0
Under the
Proposal
-0.2
-0.9
-0.1
1.4
2.3
7.7
9.8
28.6
20.4
8.9
22.0
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.6
3.7
0.6
Under the
Proposal
-11.6
-9.4
-0.8
7.6
12.5
15.9
18.4
21.4
25.1
28.4
34.0
21.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,968
5,639
5,683
4,891
3,849
7,425
5,841
9,319
2,750
441
206
49,155
6.0
11.5
11.6
10.0
7.8
15.1
11.9
19.0
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
6,252
15,769
25,918
36,161
46,701
64,368
90,740
142,137
293,742
705,334
3,105,769
95,419
Average
Federal Tax
Burden
(Dollars)
-726
-1,488
-196
2,763
5,858
10,216
16,666
30,472
73,422
189,064
941,811
19,574
Average AfterTax Income 4
(Dollars)
6,978
17,257
26,114
33,398
40,843
54,152
74,073
111,665
220,320
516,270
2,163,957
75,845
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
-11.6
-9.4
-0.8
7.6
12.5
15.9
18.4
21.4
25.0
26.8
30.3
20.5
0.4
1.9
3.1
3.8
3.8
10.2
11.3
28.2
17.2
6.6
13.7
100.0
0.6
2.6
4.0
4.4
4.2
10.8
11.6
27.9
16.3
6.1
12.0
100.0
-0.2
-0.9
-0.1
1.4
2.3
7.9
10.1
29.5
21.0
8.7
20.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0233
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.2
0.4
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
26.4
71.9
90.5
2.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-1.5
-4.0
-0.7
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.6
14.1
81.3
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
1
579
8,157
87,470
465
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
4.7
9.4
3.6
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.3
-0.3
-0.7
-0.5
0.1
1.7
0.0
Under the
Proposal
0.1
0.6
1.4
1.5
1.7
6.9
7.2
18.2
18.8
10.9
32.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.2
2.8
0.6
Under the
Proposal
3.1
2.5
4.4
5.9
6.6
10.0
13.2
17.8
22.5
25.7
32.9
17.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,305
6,471
5,084
2,999
2,259
4,405
2,504
2,986
1,128
245
132
30,543
7.6
21.2
16.7
9.8
7.4
14.4
8.2
9.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,366
15,655
25,560
36,054
46,537
64,489
89,136
141,589
304,121
709,954
3,095,895
75,737
Average
Federal Tax
Burden
(Dollars)
196
389
1,111
2,118
3,088
6,472
11,780
25,146
67,973
174,194
932,047
13,025
Average AfterTax Income 4
(Dollars)
6,170
15,265
24,449
33,937
43,449
58,017
77,356
116,443
236,148
535,760
2,163,847
62,713
Average
Federal Tax
Rate 5
3.1
2.5
4.4
5.9
6.6
10.0
13.2
17.8
22.4
24.5
30.1
17.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.6
4.7
4.5
12.3
9.7
18.3
14.8
7.5
17.7
100.0
0.7
5.2
6.5
5.3
5.1
13.3
10.1
18.2
13.9
6.9
14.9
100.0
0.1
0.6
1.4
1.6
1.8
7.2
7.4
18.9
19.3
10.8
30.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.