29-Jan-08 VERY PRELIMINARY
1
http://www.taxpolicycenter.org
Cash Income Level
(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 Units
With Tax Cut
60.9
93.7
98.3
99.0
99.5
99.8
99.8
99.9
99.9
99.7
99.9
93.5
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
4
7.0
4.4
3.2
2.5
2.1
1.7
1.4
1.0
0.5
0.2
0.1
1.4
Share of Total
Federal Tax
Change
5.9
13.7
12.7
10.2
8.3
16.1
11.5
16.0
4.4
0.7
0.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-2).
Number of AMT Taxpayers (millions). Baseline: 4.1
Proposal:
Average
Federal Tax
Change ($)
-389
-649
-747
-787
-796
-895
-1,021
-1,092
-1,101
-1,110
-1,100
-794
Average Federal Tax Rate
Change (%
Points)
-6.7
-4.2
-2.9
-2.2
-1.7
-1.4
-1.1
-0.8
-0.4
-0.2
0.0
-1.1
Proposal
-2.6
0.2
6.7
11.7
14.9
17.3
19.0
21.7
24.8
26.8
30.8
20.1
5
Under the
4.1
(1) Calendar year. Baseline is 2008 current law assuming extension and indexation for inflation of the 2007 AMT patch. The proposal provides a refundable basic credit of $500 ($1,000 for married couples filing a joint return) available to all tax filers with at least $3000 of earned income and Social Security benefits or at least $1 of income tax liability after nonrefundable credits excluding the child credit. For any tax unit with at least $1 of basic credit, the proposal provides an additional, refundable, $300 credit for each child-tax-credit-eligible child. Our estimates are based on 2008 incomes; the proposal actually allows the rebate to be based on 2007 income if it results in a higher amount. Our estimates assume that all potential beneficiaries claim the credit.
(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.

29-Jan-08
Cash Income Level
(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
VERY PRELIMINARY
Table T08-0038
Individual Income Tax Measures in Senate Stimulus Proposal
Distribution of Federal Tax Change by Cash Income Level, 2008
1
Detail Table
Percent of Tax Units
3
With Tax Cut
With Tax
Increase
60.9
93.7
98.3
99.0
99.5
99.8
99.8
99.9
99.9
99.7
99.9
93.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
4
Share of Total
Federal Tax
Change
7.0
4.4
3.2
2.5
2.1
1.7
1.4
1.0
0.5
0.2
0.1
1.4
16.0
4.4
0.7
0.4
100.0
5.9
13.7
12.7
10.2
8.3
16.1
11.5
Average Federal Tax Change
Dollars Percent
-389
-649
-747
-787
-796
-895
-1,021
-1,092
-1,101
-1,110
-1,100
-794
-164.5
-95.3
-30.2
-15.6
-10.3
-7.5
-5.6
-3.5
-1.5
-0.6
-0.1
-5.4
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.3
-0.7
-0.6
-0.4
-0.2
-0.3
0.0
0.5
0.7
0.3
1.0
0.0
25.2
16.8
7.1
19.8
100.0
-0.1
0.0
1.7
3.1
4.1
11.3
10.9
http://www.taxpolicycenter.org
Average Federal Tax Rate
5
Change (%
Points)
Under the
Proposal
-6.7
-4.2
-2.9
-2.2
-1.7
-1.4
-1.1
-0.8
-0.4
-0.2
0.0
-1.1
-2.6
0.2
6.7
11.7
14.9
17.3
19.0
21.7
24.8
26.8
30.8
20.1
Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2008
1
Cash Income Level
(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
18,164
25,275
20,401
15,452
12,430
21,580
13,470
17,502
4,784
793
421
150,867
Tax Units
Number
(thousands)
3
Percent of
Total
11.6
3.2
0.5
0.3
100.0
12.0
16.8
13.5
10.2
8.2
14.3
8.9
Average
Income
(Dollars)
5,810
15,564
25,811
36,328
46,686
64,226
90,172
140,584
299,277
707,298
3,228,212
69,872
Average
Federal Tax
Burden
(Dollars)
236
681
2,474
5,046
7,758
12,011
18,154
31,563
75,288
190,695
996,442
14,831
Average After-
Tax Income
(Dollars)
5,574
14,883
23,337
31,281
38,928
52,215
72,018
109,021
223,989
516,603
2,231,770
55,041
4
Average
Federal Tax
Rate
5
4.1
4.4
9.6
13.9
16.6
18.7
20.1
22.5
25.2
27.0
30.9
21.2
Share of Pre-
Tax Income
Percent of
Total
1.0
3.7
5.0
5.3
5.5
13.2
11.5
23.3
13.6
5.3
12.9
100.0
Share of Post-
Tax Income
Percent of
Total
1.2
4.5
5.7
5.8
5.8
13.6
11.7
23.0
12.9
4.9
11.3
100.0
Share of
Federal Taxes
Percent of
Total
0.2
0.8
2.3
3.5
4.3
11.6
10.9
24.7
16.1
6.8
18.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-2).
Number of AMT Taxpayers (millions). Baseline: 4.1
Proposal: 4.1
(1) Calendar year. Baseline is 2008 current law assuming extension and indexation for inflation of the 2007 AMT patch. The proposal provides a refundable basic credit of $500 ($1,000 for married couples filing a joint return) available to all tax filers with at least $3000 of earned income and Social Security benefits or at least $1 of income tax liability after nonrefundable credits excluding the child credit. For any tax unit with at least $1 of basic credit, the proposal provides an additional, refundable, $300 credit for each child-tax-credit-eligible child. Our estimates are based on 2008 incomes; the proposal actually allows the rebate to be based on 2007 income if it results in a higher amount. Our estimates assume that all potential beneficiaries claim the credit.
(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.