12-Oct-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 T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Summary Table
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
Percent of Tax Units
With Tax Cut
24.6
32.3
37.1
42.2
41.6
37.9
34.5
23.8
10.3
1.9
0.9
32.4
3
With Tax
Increase
11.1
13.8
20.3
22.6
23.5
29.3
36.9
52.6
79.0
97.2
98.8
29.5
Percent
Change in
After-Tax
4
Income
2.6
1.7
1.0
0.7
0.6
0.4
0.2
0.1
-0.7
-3.4
-6.8
-0.9
Share of Total
Federal Tax
Change
-2.4
-6.9
-5.6
-4.1
-3.3
-5.2
-2.6
-2.8
10.6
23.0
99.1
100.0
Average
Federal Tax
Change ($)
-138
-259
-241
-228
-233
-212
-163
-115
1,483
18,599
154,407
576
Average Federal Tax Rate
Change (%
Points)
-2.4
-1.6
-0.9
-0.6
-0.5
-0.3
-0.2
-0.1
0.5
2.6
4.9
0.7
5
Under the
Proposal
3.4
2.8
7.7
11.8
14.8
17.2
18.9
21.6
24.9
27.8
33.5
21.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 5.7
Proposal: 4.6
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for
inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC
credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit making it equal to 50% of the first $500 of
retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the
$3,000 child tax credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction
and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized
deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends
for taxpayers in the top two tax brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and
experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax
treatment of financial institutions.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table
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
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
24.6
32.3
37.1
42.2
41.6
37.9
34.5
23.8
10.3
1.9
0.9
32.4
11.1
13.8
20.3
22.6
23.5
29.3
36.9
52.6
79.0
97.2
98.8
29.5
Percent
Change in
After-Tax
Income 4
2.6
1.7
1.0
0.7
0.6
0.4
0.2
0.1
-0.7
-3.4
-6.8
-0.9
Share of Total
Federal Tax
Change
-2.4
-6.9
-5.6
-4.1
-3.3
-5.2
-2.6
-2.8
10.6
23.0
99.1
100.0
Average Federal Tax Change
Dollars
-138
-259
-241
-228
-233
-212
-163
-115
1,483
18,599
154,407
576
Percent
-41.7
-37.1
-10.6
-5.0
-3.2
-1.8
-0.9
-0.4
2.0
10.2
17.0
3.4
Share of Federal Taxes
Change (%
Points)
-0.1
-0.3
-0.2
-0.2
-0.2
-0.5
-0.4
-1.0
-0.2
0.5
2.6
0.0
Under the
Proposal
0.1
0.4
1.5
2.6
3.3
9.1
9.2
25.1
17.8
8.2
22.5
100.0
Average Federal Tax Rate5
Change (%
Points)
-2.4
-1.6
-0.9
-0.6
-0.5
-0.3
-0.2
-0.1
0.5
2.6
4.9
0.7
Under the
Proposal
3.4
2.8
7.7
11.8
14.8
17.2
18.9
21.6
24.9
27.8
33.5
21.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 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)
16,395
24,950
21,464
16,563
13,107
22,796
14,829
22,547
6,681
1,152
598
161,771
Percent of
Total
10.1
15.4
13.3
10.2
8.1
14.1
9.2
13.9
4.1
0.7
0.4
100.0
Average
Income
(Dollars)
5,731
15,992
26,534
37,088
47,849
65,785
92,580
145,308
302,126
725,130
3,175,497
81,418
Average
Federal Tax
Burden
(Dollars)
332
699
2,270
4,590
7,330
11,523
17,646
31,564
73,598
183,150
909,071
16,876
Average AfterTax Income 4
(Dollars)
5,399
15,293
24,264
32,498
40,519
54,262
74,933
113,745
228,527
541,980
2,266,427
64,542
Average
Federal Tax
Rate 5
5.8
4.4
8.6
12.4
15.3
17.5
19.1
21.7
24.4
25.3
28.6
20.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.7
3.0
4.3
4.7
4.8
11.4
10.4
24.9
15.3
6.3
14.4
100.0
0.9
3.7
5.0
5.2
5.1
11.9
10.6
24.6
14.6
6.0
13.0
100.0
0.2
0.6
1.8
2.8
3.5
9.6
9.6
26.1
18.0
7.7
19.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 5.7
Proposal: 4.6
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Level, 2014
Detail Table - Single Tax Units
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
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
18.2
19.1
26.4
34.2
26.3
16.3
14.4
7.1
5.4
3.3
0.0
20.9
10.9
16.6
25.7
26.3
28.7
38.6
47.5
64.9
87.4
95.3
99.9
27.6
Percent
Change in
After-Tax
Income 4
1.8
0.7
0.5
0.4
0.2
0.2
0.1
-0.2
-1.2
-3.7
-6.9
-0.5
Share of Total
Federal Tax
Change
-9.2
-13.8
-11.2
-8.6
-4.7
-6.2
-1.3
7.4
19.4
24.9
103.1
100.0
Average Federal Tax Change
Dollars
-92
-105
-113
-128
-92
-80
-39
224
2,643
19,117
143,956
166
Percent
-18.5
-8.4
-3.4
-2.1
-1.0
-0.6
-0.2
0.7
3.4
10.1
15.3
1.7
Share of Federal Taxes
Change (%
Points)
-0.2
-0.3
-0.3
-0.3
-0.2
-0.4
-0.2
-0.2
0.2
0.4
1.6
0.0
Under the
Proposal
0.7
2.6
5.3
6.7
7.8
18.1
12.0
19.1
9.8
4.6
13.1
100.0
Average Federal Tax Rate5
Change (%
Points)
-1.6
-0.7
-0.4
-0.4
-0.2
-0.1
0.0
0.2
0.9
2.7
4.8
0.4
Under the
Proposal
7.1
7.2
12.0
16.0
18.9
21.4
23.5
24.4
26.0
29.4
35.9
21.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 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
11,785
15,609
11,803
7,961
6,076
9,192
3,953
3,918
873
155
85
71,749
16.4
21.8
16.5
11.1
8.5
12.8
5.5
5.5
1.2
0.2
0.1
100.0
Average
Income
(Dollars)
5,738
15,863
26,403
37,030
47,870
65,017
91,214
140,835
305,307
710,840
3,020,093
46,638
Average
Federal Tax
Burden
(Dollars)
500
1,254
3,287
6,056
9,155
13,964
21,455
34,092
76,717
189,624
941,138
9,646
Average AfterTax Income 4
(Dollars)
5,238
14,610
23,116
30,975
38,715
51,053
69,759
106,743
228,590
521,216
2,078,955
36,992
Average
Federal Tax
Rate 5
8.7
7.9
12.5
16.4
19.1
21.5
23.5
24.2
25.1
26.7
31.2
20.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.0
7.4
9.3
8.8
8.7
17.9
10.8
16.5
8.0
3.3
7.7
100.0
2.3
8.6
10.3
9.3
8.9
17.7
10.4
15.8
7.5
3.0
6.7
100.0
0.9
2.8
5.6
7.0
8.0
18.5
12.3
19.3
9.7
4.3
11.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and
limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Level, 2014
Detail Table - Married Tax Units Filing Jointly
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
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
20.0
39.0
44.5
45.4
52.8
55.1
43.9
28.1
11.3
1.6
1.1
36.7
19.2
17.0
21.4
29.9
26.4
26.2
34.5
50.5
77.8
97.5
98.6
39.7
Percent
Change in
After-Tax
Income 4
2.4
1.9
1.4
1.0
0.9
0.5
0.2
0.2
-0.6
-3.4
-6.8
-1.3
Share of Total
Federal Tax
Change
-0.3
-1.4
-1.9
-1.7
-1.8
-3.1
-1.9
-4.0
8.3
20.7
87.0
100.0
Average Federal Tax Change
Dollars
-108
-307
-353
-327
-375
-288
-185
-197
1,269
18,498
152,387
1,384
Percent
-40.6
-66.7
-27.8
-12.0
-7.7
-3.1
-1.2
-0.6
1.7
10.1
17.2
4.7
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.1
-0.4
-0.4
-1.5
-0.6
0.5
2.8
0.0
Under the
Proposal
0.0
0.0
0.2
0.6
1.0
4.3
7.3
28.1
21.8
10.1
26.6
100.0
Average Federal Tax Rate5
Change (%
Points)
-2.2
-1.9
-1.3
-0.9
-0.8
-0.4
-0.2
-0.1
0.4
2.5
4.9
1.0
Under the
Proposal
3.3
0.9
3.4
6.5
9.3
13.3
16.6
21.0
24.7
27.6
33.0
22.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 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
2,149
3,779
4,683
4,384
4,031
9,255
8,936
17,410
5,581
957
490
61,925
3.5
6.1
7.6
7.1
6.5
15.0
14.4
28.1
9.0
1.6
0.8
100.0
Average
Income
(Dollars)
4,856
16,580
26,660
37,167
47,976
66,869
93,299
146,871
301,626
728,191
3,139,514
136,599
Average
Federal Tax
Burden
(Dollars)
267
460
1,269
2,726
4,853
9,156
15,651
30,965
73,087
182,477
884,342
29,414
Average AfterTax Income 4
(Dollars)
4,590
16,121
25,391
34,441
43,123
57,712
77,648
115,906
228,540
545,714
2,255,172
107,185
Average
Federal Tax
Rate 5
5.5
2.8
4.8
7.3
10.1
13.7
16.8
21.1
24.2
25.1
28.2
21.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.7
1.5
1.9
2.3
7.3
9.9
30.2
19.9
8.2
18.2
100.0
0.2
0.9
1.8
2.3
2.6
8.1
10.5
30.4
19.2
7.9
16.6
100.0
0.0
0.1
0.3
0.7
1.1
4.7
7.7
29.6
22.4
9.6
23.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and
limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Level, 2014
Detail Table - Head of Household Tax Units
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
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
61.7
67.0
56.9
56.3
62.2
51.3
37.3
16.5
8.7
1.7
0.0
55.6
5.1
3.0
6.0
7.4
8.5
14.8
23.8
41.9
70.3
96.6
99.0
10.3
Percent
Change in
After-Tax
Income 4
5.8
4.1
1.8
1.0
0.9
0.7
0.5
0.1
-0.6
-3.1
-6.9
0.9
Share of Total
Federal Tax
Change
11.0
42.4
25.3
15.1
11.2
16.6
7.1
1.0
-2.7
-5.6
-21.6
100.0
Average Federal Tax Change
Dollars
-405
-689
-464
-335
-364
-372
-375
-77
1,323
16,777
146,185
-335
Percent
84.5
81.3
-83.1
-9.6
-5.5
-3.4
-2.0
-0.3
1.8
10.1
16.9
-5.3
Share of Federal Taxes
Change (%
Points)
-0.7
-2.5
-1.3
-0.4
0.0
0.5
0.6
1.1
0.6
0.5
1.6
0.0
Under the
Proposal
-1.3
-5.3
0.3
7.9
10.8
26.8
19.2
21.5
8.3
3.4
8.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.2
-4.3
-1.7
-0.9
-0.8
-0.6
-0.4
-0.1
0.4
2.4
4.9
-0.8
Under the
Proposal
-13.6
-9.6
0.4
8.5
13.2
16.5
19.8
22.9
24.5
26.1
34.0
13.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 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
2,328
5,290
4,676
3,883
2,649
3,843
1,615
1,055
174
28
13
25,605
9.1
20.7
18.3
15.2
10.4
15.0
6.3
4.1
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
6,522
15,961
26,716
37,061
47,582
64,966
91,867
136,677
299,733
701,148
2,976,702
44,717
Average
Federal Tax
Burden
(Dollars)
-479
-847
559
3,473
6,624
11,079
18,581
31,428
72,065
165,968
865,789
6,333
Average AfterTax Income 4
(Dollars)
7,001
16,808
26,157
33,588
40,958
53,886
73,287
105,249
227,668
535,181
2,110,914
38,385
Average
Federal Tax
Rate 5
-7.4
-5.3
2.1
9.4
13.9
17.1
20.2
23.0
24.0
23.7
29.1
14.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.3
7.4
10.9
12.6
11.0
21.8
13.0
12.6
4.6
1.7
3.3
100.0
1.7
9.1
12.5
13.3
11.0
21.1
12.1
11.3
4.0
1.6
2.7
100.0
-0.7
-2.8
1.6
8.3
10.8
26.3
18.5
20.4
7.7
2.9
6.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and
limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Tax Units with Children
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
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
64.1
79.2
70.0
70.7
73.6
64.9
54.7
38.1
13.7
1.9
0.6
57.6
2.2
2.0
4.1
4.9
5.7
10.9
19.2
38.1
72.7
97.3
99.3
19.2
Percent
Change in
After-Tax
Income 4
6.2
4.8
2.4
1.6
1.3
0.8
0.5
0.4
-0.5
-3.8
-7.3
-0.7
Share of Total
Federal Tax
Change
-4.4
-17.5
-13.3
-9.6
-8.1
-12.5
-7.5
-15.0
12.5
36.9
138.4
100.0
Average Federal Tax Change
Dollars
-433
-847
-645
-534
-557
-455
-356
-406
1,088
20,365
162,210
544
Percent
62.9
56.5
539.2
-18.9
-9.3
-4.4
-2.1
-1.3
1.5
10.5
17.5
2.6
Share of Federal Taxes
Change (%
Points)
-0.1
-0.4
-0.3
-0.3
-0.3
-0.5
-0.4
-1.1
-0.2
0.7
3.0
0.0
Under the
Proposal
-0.3
-1.2
-0.4
1.0
2.0
6.8
8.7
28.4
22.0
9.7
23.3
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.9
-5.2
-2.4
-1.4
-1.2
-0.7
-0.4
-0.3
0.4
2.8
5.2
0.5
Under the
Proposal
-18.0
-14.5
-2.9
6.2
11.3
15.0
17.6
21.1
25.3
29.5
34.7
21.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 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
2,749
5,590
5,566
4,882
3,929
7,405
5,694
9,988
3,118
490
231
49,780
5.5
11.2
11.2
9.8
7.9
14.9
11.4
20.1
6.3
1.0
0.5
100.0
Average
Income
(Dollars)
6,253
16,191
26,627
37,104
47,874
66,154
93,283
146,051
300,423
724,847
3,138,297
102,631
Average
Federal Tax
Burden
(Dollars)
-690
-1,498
-120
2,830
5,977
10,345
16,802
31,168
75,027
193,721
925,885
21,174
Average AfterTax Income 4
(Dollars)
6,942
17,689
26,747
34,274
41,897
55,808
76,481
114,883
225,396
531,126
2,212,412
81,457
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
-11.0
-9.3
-0.5
7.6
12.5
15.6
18.0
21.3
25.0
26.7
29.5
20.6
0.3
1.8
2.9
3.6
3.7
9.6
10.4
28.6
18.3
7.0
14.2
100.0
0.5
2.4
3.7
4.1
4.1
10.2
10.7
28.3
17.3
6.4
12.6
100.0
-0.2
-0.8
-0.1
1.3
2.2
7.3
9.1
29.5
22.2
9.0
20.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0243
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Elderly Tax Units
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
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
4.4
3.8
6.8
7.4
8.5
12.0
12.0
6.0
4.8
1.3
0.5
7.1
28.2
26.6
47.5
60.1
64.8
67.9
72.7
83.9
92.2
97.5
99.1
55.3
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.4
-1.0
-3.0
-6.6
-1.5
Share of Total
Federal Tax
Change
0.0
0.0
0.2
0.5
0.4
0.9
1.1
4.6
9.0
13.2
70.1
100.0
Average Federal Tax Change
Dollars
-2
0
10
47
50
71
128
441
2,434
16,741
151,444
996
Percent
-0.9
-0.1
0.9
2.3
1.6
1.1
1.1
1.8
3.7
9.6
16.2
7.5
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.4
-0.5
-1.0
-0.7
0.2
2.6
0.0
Under the
Proposal
0.1
0.5
1.3
1.6
1.6
5.9
7.1
18.5
17.7
10.6
35.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.3
0.8
2.3
4.7
1.3
Under the
Proposal
3.3
2.3
4.2
5.6
6.6
9.6
12.7
17.4
22.2
26.3
33.6
17.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 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
2,141
6,773
5,562
3,452
2,280
4,211
2,785
3,346
1,188
253
148
32,167
6.7
21.1
17.3
10.7
7.1
13.1
8.7
10.4
3.7
0.8
0.5
100.0
Average
Income
(Dollars)
6,199
16,256
26,342
36,971
47,737
66,263
91,958
145,447
307,476
728,374
3,239,966
79,440
Average
Federal Tax
Burden
(Dollars)
208
366
1,083
2,019
3,122
6,296
11,576
24,853
65,860
175,013
935,528
13,258
Average AfterTax Income 4
(Dollars)
5,992
15,891
25,259
34,953
44,615
59,967
80,382
120,594
241,616
553,360
2,304,438
66,182
Average
Federal Tax
Rate 5
3.4
2.3
4.1
5.5
6.5
9.5
12.6
17.1
21.4
24.0
28.9
16.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.5
4.3
5.7
5.0
4.3
10.9
10.0
19.0
14.3
7.2
18.8
100.0
0.6
5.1
6.6
5.7
4.8
11.9
10.5
19.0
13.5
6.6
16.1
100.0
0.1
0.6
1.4
1.6
1.7
6.2
7.6
19.5
18.4
10.4
32.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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.