1-Mar-10
REVISED 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 T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Summary Table
Cash Income Level
(thousands of 2009
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
Percent of Tax Units
With Tax Cut
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
44.2
85.7
92.5
2.7
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-0.8
-1.7
-0.3
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
10.1
16.3
73.5
100.0
0
0
0
0
0
0
0
1
467
4,235
36,310
180
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.6
1.2
0.2
5
Under the
Proposal
5.7
5.2
10.5
14.6
17.3
19.5
21.5
24.6
27.6
29.1
34.4
23.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 21.0
Proposal: 21.0
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married
couples filing a joint return) as defined for purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment
income would include taxable interest, dividends, net positive capital gains, net positive income from rents, net positive income from royalties, and net positive
passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's adjusted gross income in excess of
$200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
1-Mar-10
REVISED PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
44.2
85.7
92.5
2.7
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-0.8
-1.7
-0.3
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
10.1
16.3
73.5
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
1
467
4,235
36,310
180
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.6
2.1
3.5
1.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.1
0.1
0.5
0.0
Under the
Proposal
0.2
0.7
2.0
2.9
3.6
9.7
9.6
25.5
17.1
7.7
21.0
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.6
1.2
0.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 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)
16,502
24,782
21,396
16,376
13,031
22,841
14,549
21,632
6,214
1,106
582
159,683
Percent of
Total
10.3
15.5
13.4
10.3
8.2
14.3
9.1
13.6
3.9
0.7
0.4
100.0
Average
Income
(Dollars)
5,707
15,704
26,108
36,546
47,119
64,835
91,193
142,825
298,823
714,908
3,132,936
78,831
Average
Federal Tax
Burden
(Dollars)
323
819
2,746
5,349
8,168
12,651
19,591
35,139
81,891
203,500
1,042,101
18,515
Average AfterTax Income 4
(Dollars)
5,384
14,886
23,361
31,196
38,951
52,184
71,602
107,686
216,932
511,408
2,090,835
60,316
Average
Federal Tax
Rate 5
5.7
5.2
10.5
14.6
17.3
19.5
21.5
24.6
27.4
28.5
33.3
23.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.1
4.4
4.8
4.9
11.8
10.5
24.5
14.8
6.3
14.5
100.0
0.9
3.8
5.2
5.3
5.3
12.4
10.8
24.2
14.0
5.9
12.6
100.0
0.2
0.7
2.0
3.0
3.6
9.8
9.6
25.7
17.2
7.6
20.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 21.0
Proposal: 21.0
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
Under the
Proposal
5.7
5.2
10.5
14.6
17.3
19.5
21.5
24.6
27.6
29.1
34.4
23.7
1-Mar-10
REVISED PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 1
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
64.7
83.2
89.4
1.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-1.0
-1.9
-0.2
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.1
16.5
68.4
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
818
5,057
36,758
63
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
2.3
3.4
0.6
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
0.0
0.1
0.3
0.0
Under the
Proposal
0.8
2.9
5.7
7.0
8.0
18.2
11.6
18.9
9.9
4.4
12.4
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.7
1.2
0.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 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
11,828
15,407
11,555
7,794
6,086
9,075
3,687
3,717
813
144
82
70,516
16.8
21.9
16.4
11.1
8.6
12.9
5.2
5.3
1.2
0.2
0.1
100.0
Average
Income
(Dollars)
5,698
15,564
25,975
36,476
47,085
63,999
89,906
138,527
304,431
705,182
2,967,927
45,222
Average
Federal Tax
Burden
(Dollars)
496
1,371
3,649
6,595
9,655
14,755
23,167
37,361
88,842
218,505
1,069,744
10,352
Average AfterTax Income 4
(Dollars)
5,203
14,193
22,326
29,881
37,429
49,244
66,739
101,165
215,589
486,677
1,898,183
34,870
Average
Federal Tax
Rate 5
8.7
8.8
14.1
18.1
20.5
23.1
25.8
27.0
29.2
31.0
36.0
22.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.1
7.5
9.4
8.9
9.0
18.2
10.4
16.2
7.8
3.2
7.7
100.0
2.5
8.9
10.5
9.5
9.3
18.2
10.0
15.3
7.1
2.9
6.4
100.0
0.8
2.9
5.8
7.0
8.1
18.3
11.7
19.0
9.9
4.3
12.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
Under the
Proposal
8.7
8.8
14.1
18.1
20.5
23.1
25.8
27.0
29.5
31.7
37.3
23.0
1-Mar-10
REVISED PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 1
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
39.5
86.0
92.8
5.4
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-0.8
-1.7
-0.4
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
9.0
16.7
74.2
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
392
4,081
35,172
367
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
2.0
3.5
1.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.1
0.1
0.6
0.0
Under the
Proposal
0.0
0.1
0.4
0.8
1.2
5.0
8.1
29.0
21.0
9.5
24.9
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.6
1.1
0.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 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
2,146
3,927
4,789
4,393
4,045
9,552
9,065
16,793
5,188
925
476
61,567
3.5
6.4
7.8
7.1
6.6
15.5
14.7
27.3
8.4
1.5
0.8
100.0
Average
Income
(Dollars)
4,820
16,283
26,261
36,653
47,276
65,950
91,849
144,302
298,013
717,165
3,098,035
131,596
Average
Federal Tax
Burden
(Dollars)
271
551
1,850
3,667
6,016
10,504
17,861
34,686
80,901
201,629
1,015,333
32,310
Average AfterTax Income 4
(Dollars)
4,549
15,732
24,411
32,986
41,260
55,446
73,987
109,617
217,112
515,536
2,082,702
99,285
Average
Federal Tax
Rate 5
5.6
3.4
7.1
10.0
12.7
15.9
19.5
24.0
27.2
28.1
32.8
24.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.8
1.6
2.0
2.4
7.8
10.3
29.9
19.1
8.2
18.2
100.0
0.2
1.0
1.9
2.4
2.7
8.7
11.0
30.1
18.4
7.8
16.2
100.0
0.0
0.1
0.5
0.8
1.2
5.0
8.1
29.3
21.1
9.4
24.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
Under the
Proposal
5.6
3.4
7.1
10.0
12.7
15.9
19.5
24.0
27.3
28.7
33.9
24.8
1-Mar-10
REVISED PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 1
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
79.2
83.2
95.8
0.6
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-0.8
-1.7
-0.1
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
17.7
17.4
64.9
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
697
4,107
34,155
25
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
2.3
3.4
0.4
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.0
0.1
0.2
0.0
Under the
Proposal
-0.7
-2.1
3.5
9.8
11.1
26.2
17.2
18.3
7.0
2.8
7.0
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.6
1.2
0.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 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
2,384
5,169
4,739
3,847
2,550
3,705
1,493
962
161
27
12
25,098
9.5
20.6
18.9
15.3
10.2
14.8
6.0
3.8
0.6
0.1
0.1
100.0
Average
Income
(Dollars)
6,553
15,681
26,253
36,526
46,982
63,981
90,488
134,401
295,681
691,245
2,963,152
43,145
Average
Federal Tax
Burden
(Dollars)
-508
-722
1,302
4,543
7,728
12,614
20,535
33,897
76,748
182,247
997,637
7,081
Average AfterTax Income 4
(Dollars)
7,061
16,402
24,951
31,983
39,253
51,368
69,953
100,504
218,933
508,999
1,965,515
36,064
Average
Federal Tax
Rate 5
-7.8
-4.6
5.0
12.4
16.5
19.7
22.7
25.2
26.0
26.4
33.7
16.4
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.4
7.5
11.5
13.0
11.1
21.9
12.5
11.9
4.4
1.7
3.3
100.0
1.9
9.4
13.1
13.6
11.1
21.0
11.5
10.7
3.9
1.5
2.6
100.0
-0.7
-2.1
3.5
9.8
11.1
26.3
17.3
18.4
6.9
2.7
6.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
Under the
Proposal
-7.8
-4.6
5.0
12.4
16.5
19.7
22.7
25.2
26.2
27.0
34.8
16.5
1-Mar-10
REVISED PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
44.4
93.6
97.9
4.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
-0.8
-1.7
-0.3
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
10.8
17.3
71.8
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
405
3,932
34,611
219
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
1.9
3.2
0.9
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.1
0.1
0.5
0.0
Under the
Proposal
-0.2
-0.6
0.4
1.8
2.5
7.6
9.4
28.7
20.4
8.8
21.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.6
1.1
0.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 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
2,857
5,609
5,655
4,911
3,915
7,394
5,702
9,573
2,895
477
224
49,348
5.8
11.4
11.5
10.0
7.9
15.0
11.6
19.4
5.9
1.0
0.5
100.0
Average
Income
(Dollars)
6,247
15,929
26,192
36,543
47,207
65,203
91,892
143,664
297,024
715,114
3,119,255
99,072
Average
Federal Tax
Burden
(Dollars)
-693
-1,298
844
4,177
7,404
12,113
19,395
35,273
82,458
213,067
1,069,109
23,595
Average AfterTax Income 4
(Dollars)
6,941
17,227
25,347
32,366
39,803
53,090
72,497
108,391
214,566
502,047
2,050,145
75,477
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
-11.1
-8.2
3.2
11.4
15.7
18.6
21.1
24.6
27.8
29.8
34.3
23.8
0.4
1.8
3.0
3.7
3.8
9.9
10.7
28.1
17.6
7.0
14.3
100.0
0.5
2.6
3.9
4.3
4.2
10.5
11.1
27.9
16.7
6.4
12.4
100.0
-0.2
-0.6
0.4
1.8
2.5
7.7
9.5
29.0
20.5
8.7
20.6
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. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
Under the
Proposal
-11.1
-8.2
3.2
11.4
15.7
18.6
21.1
24.6
27.9
30.3
35.4
24.0
1-Mar-10
REVISED PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0084
Proposal to Broaden the Medicare Hospital Insurance Tax Base
Distribution of Federal Tax Change by Cash Income Level, 2013 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
37.3
77.9
92.2
2.3
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-1.0
-2.0
-0.4
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
7.9
15.7
76.3
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
1
574
5,220
42,305
253
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.7
2.6
4.0
1.7
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.2
0.1
0.7
0.0
Under the
Proposal
0.1
0.6
1.4
1.6
1.9
6.7
7.4
19.3
18.2
10.1
32.7
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.7
1.3
0.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 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
2,172
6,748
5,361
3,209
2,230
4,305
2,610
3,192
1,097
238
143
31,333
6.9
21.5
17.1
10.2
7.1
13.7
8.3
10.2
3.5
0.8
0.5
100.0
Average
Income
(Dollars)
6,172
15,836
25,861
36,417
47,022
65,349
90,205
143,246
306,015
718,754
3,171,919
77,032
Average
Federal Tax
Burden
(Dollars)
211
412
1,260
2,446
4,069
7,533
13,715
29,445
80,095
200,351
1,067,486
15,256
Average AfterTax Income 4
(Dollars)
5,961
15,424
24,602
33,971
42,953
57,817
76,490
113,801
225,920
518,403
2,104,433
61,775
Average
Federal Tax
Rate 5
3.4
2.6
4.9
6.7
8.7
11.5
15.2
20.6
26.2
27.9
33.7
19.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.7
4.8
4.3
11.7
9.8
18.9
13.9
7.1
18.8
100.0
0.7
5.4
6.8
5.6
5.0
12.9
10.3
18.8
12.8
6.4
15.6
100.0
0.1
0.6
1.4
1.6
1.9
6.8
7.5
19.7
18.4
10.0
32.0
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. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 2.9% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 2.9% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would be indexed for inflation.
(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.
Under the
Proposal
3.4
2.6
4.9
6.7
8.7
11.5
15.2
20.6
26.4
28.6
35.0
20.1