9-Feb-06
Preliminary Results
http://www.taxpolicycenter.org
Table T06-0040
Make EGTRRA, JGTRRA, and WFTRA Permanent with No AMT Relief, Extend R&E Credit
Baseline is Current Law
Distribution of Federal Tax Change by Cash Income Class, 2011 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
17.3
62.1
86.9
93.6
96.2
96.8
97.2
95.7
96.3
99.8
99.9
80.5
0.2
0.7
0.2
0.1
0.1
0.4
0.2
0.1
0.1
0.1
0.1
0.3
Percent
Change in
After-Tax
4
Income
0.2
1.3
2.4
2.4
2.2
2.2
2.2
2.3
2.6
5.5
7.6
3.0
Share of
Total
Federal Tax
Change
0.1
1.9
4.8
4.9
4.5
10.2
8.6
17.9
11.5
9.2
26.1
100.0
Average Federal Tax Change
Dollars
-10
-203
-586
-780
-906
-1,214
-1,636
-2,566
-5,987
-29,889
-165,318
-1,719
Percent
-3.6
-19.7
-17.2
-12.2
-9.6
-8.3
-7.3
-6.6
-6.6
-13.1
-15.0
-9.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.1
0.0
0.2
0.3
0.8
0.5
-0.3
-1.0
0.0
Under the
Proposal
0.2
0.8
2.4
3.6
4.4
11.8
11.3
26.6
17.1
6.3
15.4
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.2
-1.2
-2.1
-2.0
-1.8
-1.7
-1.7
-1.7
-1.9
-3.9
-5.1
-2.2
Under the
Proposal
4.2
4.9
10.0
14.2
16.8
19.3
21.1
24.0
26.4
25.7
28.6
21.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Class, 2011 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)
17,076
24,604
22,025
16,710
13,168
22,575
14,102
18,722
5,166
825
423
155,984
Percent of
Total
11.0
15.8
14.1
10.7
8.4
14.5
9.0
12.0
3.3
0.5
0.3
100.0
Average
Income
(Dollars)
6,303
17,000
28,090
39,487
50,814
69,796
98,049
152,864
324,098
769,080
3,274,032
76,577
Average
Federal Tax
Burden
(Dollars)
272
1,028
3,408
6,374
9,459
14,682
22,331
39,201
91,378
227,763
1,102,484
18,250
Average
After-Tax
4
Income
(Dollars)
6,031
15,972
24,682
33,113
41,355
55,114
75,718
113,663
232,719
541,317
2,171,547
58,327
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
4.3
6.1
12.1
16.1
18.6
21.0
22.8
25.6
28.2
29.6
33.7
23.8
0.9
3.5
5.2
5.5
5.6
13.2
11.6
24.0
14.0
5.3
11.6
100.0
1.1
4.3
6.0
6.1
6.0
13.7
11.7
23.4
13.2
4.9
10.1
100.0
Share of
Federal Taxes
Percent of
Total
0.2
0.9
2.6
3.7
4.4
11.6
11.1
25.8
16.6
6.6
16.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
Number of AMT Taxpayers (millions). Baseline:
16.9
Proposal:
33.9
(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 Research & Experimentation (R&E) credit as outlined in the Administration's FY2007 Budget.
(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.