12-Mar-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0103
One Percentage Point Individual Income Tax Surcharge
1
Distribution of Federal Tax Change by Cash Income Class, 2007
Cash Income Class
(thousands of 2006
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 Units3
With Tax
Cut
With Tax
Increase
0.0
2.8
2.8
2.0
0.9
0.4
0.9
0.4
0.3
0.1
0.1
1.3
2.0
29.2
62.5
79.6
89.8
96.7
98.0
98.9
99.1
99.1
99.5
66.4
Percent
Change in
After-Tax
Income4
0.0
-0.1
-0.3
-0.4
-0.6
-0.7
-0.7
-0.7
-1.0
-1.1
-1.2
-0.7
Share of
Total
Federal Tax
Change
0.0
0.7
2.4
3.7
4.7
12.8
11.0
22.9
16.7
7.6
17.6
100.0
Average Federal Tax Change
Dollars
0
14
65
135
212
333
465
761
2,061
5,575
24,560
371
Percent
0.0
2.1
2.7
2.7
2.8
2.9
2.6
2.4
2.6
2.9
2.5
2.6
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
Under the
Proposal
0.2
0.8
2.3
3.5
4.3
11.6
11.0
24.9
16.3
6.7
18.3
100.0
Average Federal Tax
Rate5
Change (% Under the
Points)
Proposal
0.0
0.1
0.3
0.4
0.5
0.5
0.5
0.6
0.7
0.8
0.8
0.6
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Class, 2007
Cash Income Class
(thousands of 2006
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 Units3
Number
(thousands)
18,608
25,761
20,224
15,244
12,157
21,294
13,139
16,685
4,475
756
396
149,332
Percent of
Total
12.5
17.3
13.5
10.2
8.1
14.3
8.8
11.2
3.0
0.5
0.3
100.0
Average
Income
(Dollars)
5,699
15,189
25,240
35,555
45,638
62,764
88,142
137,212
293,234
692,259
3,113,319
66,439
Average
Federal Tax
Burden
(Dollars)
231
660
2,429
4,952
7,529
11,703
17,963
32,136
78,133
189,965
995,145
14,401
Average
After-Tax
Income4
(Dollars)
5,468
14,529
22,812
30,603
38,109
51,062
70,179
105,076
215,101
502,294
2,118,173
52,039
Average
Federal Tax
Rate5
Share of PreTax Income
Percent of
Total
4.1
4.4
9.6
13.9
16.5
18.7
20.4
23.4
26.7
27.4
32.0
21.7
1.1
3.9
5.1
5.5
5.6
13.5
11.7
23.1
13.2
5.3
12.4
100.0
Share of
Share of PostFederal Taxes
Tax Income
Percent of
Percent of
Total
Total
1.3
4.8
5.9
6.0
6.0
14.0
11.9
22.6
12.4
4.9
10.8
100.0
0.2
0.8
2.3
3.5
4.3
11.6
11.0
24.9
16.3
6.7
18.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
Number of AMT Taxpayers (millions). Baseline:
23.4
Proposal:
21.6
(1) Calendar year. Baseline is current law. Proposal would increase individual income tax rates from 10, 15, 25, 28, 33, and 35 percent to 11, 16, 26, 29, 34, and 36 percent. Alternative
minimum tax rates would increase from 26 and 28 percent to 27 and 29 percent. Rates on long-term capital gains and qualifying dividends would increase from 15 to 16 percent (from 5
percent to 6 percent for lower-income taxpayers).
(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.
4.1
4.4
9.9
14.3
17.0
19.2
20.9
24.0
27.4
28.3
32.8
22.2