14-Dec-05
Preliminary Results
http://www.taxpolicycenter.org
Table T05-0301
Make EGTRRA, JGTRRA, and WFTRA Permanent With Extension of 2005 AMT Relief, Indexed for Inflation
Baseline is Current Law
Distribution of Federal Tax Change by Cash Income Class, 2015 1
Cash Income Class
(thousands of 2005
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
3
Percent of Tax Units
With Tax
Cut
With Tax
Increase
5.6
51.6
76.7
84.0
88.8
96.2
99.2
99.5
99.5
99.1
99.1
76.5
0.2
0.6
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.1
0.2
0.2
Percent
Change in
After-Tax
4
Income
0.1
1.2
2.2
2.3
2.2
2.7
3.6
4.4
4.4
5.3
7.2
4.0
Share of
Total
Federal Tax
Change
0.0
1.2
3.2
3.4
3.3
9.0
10.5
27.2
15.9
7.0
19.1
100.0
Average Federal Tax Change
Dollars
-9
-212
-599
-827
-1,010
-1,642
-2,989
-5,502
-11,148
-31,655
-169,677
-2,644
Percent
-2.9
-19.2
-16.3
-12.2
-9.8
-10.1
-12.0
-12.5
-10.9
-12.9
-14.4
-12.3
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
0.0
0.1
0.3
0.0
-0.1
0.3
-0.1
-0.4
0.0
Under the
Proposal
0.2
0.7
2.3
3.4
4.2
11.2
10.8
26.6
18.0
6.6
15.9
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.1
-1.1
-2.0
-1.9
-1.8
-2.2
-2.8
-3.3
-3.2
-3.8
-4.8
-3.0
Under the
Proposal
4.6
4.8
10.0
13.8
16.7
19.1
20.5
23.0
25.7
25.5
28.5
21.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Class, 2015 1
Cash Income Class
(thousands of 2005
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 Units3
Number
(thousands)
15,853
24,587
22,795
17,610
13,922
23,689
15,212
21,328
6,135
948
486
163,160
Percent of
Total
9.7
15.1
14.0
10.8
8.5
14.5
9.3
13.1
3.8
0.6
0.3
100.0
Average
Income
(Dollars)
6,645
18,558
30,772
43,040
55,387
76,043
107,254
168,033
353,439
839,707
3,555,482
88,578
Average
Federal Tax
Burden
(Dollars)
316
1,102
3,680
6,767
10,270
16,190
24,983
44,077
101,883
246,065
1,181,729
21,570
Average
After-Tax
4
Income
(Dollars)
6,328
17,456
27,092
36,273
45,117
59,853
82,271
123,955
251,556
593,642
2,373,753
67,007
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
4.8
5.9
12.0
15.7
18.5
21.3
23.3
26.2
28.8
29.3
33.2
24.4
0.7
3.2
4.9
5.2
5.3
12.5
11.3
24.8
15.0
5.5
12.0
100.0
0.9
3.9
5.7
5.8
5.8
13.0
11.5
24.2
14.1
5.2
10.6
100.0
Share of
Federal Taxes
Percent of
Total
0.1
0.8
2.4
3.4
4.1
10.9
10.8
26.7
17.8
6.6
16.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
Number of AMT Taxpayers (millions). Baseline:
28.5
Proposal:
8.7
(1) Calendar year. Baseline is current law. Provisions include extending provisions in EGTRRA, JGTRRA, and WFTRA affecting the following: marginal tax rates; the 10-percent bracket; the child
tax credit; the child and dependent care credit; the standard deduction, 15-percent bracket, and EITC for married couples; tax rates on long-term capital gains and dividends; pension and IRA
provisions (excludes the saver's credit); expansion of student loan interest deduction (excludes other education provisions); and estate tax exemption, rates, and state death tax credit. Provisions also
include extending the 2005 AMT exemption levels, indexed for inflation after 2005; and allowance of personal non-refundable credits regardless of tentative AMT.
(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. Tax units that are dependents of other taxpayers are excluded from the analysis.
(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.