21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 1 Summary 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 With Tax Increase 0.0 0.0 0.0 0.0 0.0 0.0 0.2 4.4 44.6 58.7 73.8 2.9 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 -1.0 -0.2 Share of Total Federal Tax Change Average Federal Tax Change ($) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 14.4 25.1 60.1 100.0 0 0 0 0 0 0 0 4 440 4,349 20,526 115 Average Federal Tax Rate5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.6 0.7 0.2 Under the Proposal 5.3 4.6 8.8 12.9 15.7 17.8 19.5 22.0 24.9 27.0 32.0 21.4 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Number of AMT Taxpayers (millions). Baseline: 4.6 Proposal: 3.8 ** This table is part of a series of tables showing the distributional effects of moving incrementally from current policy to current law. For definitions and further information, see “Related Tables: Moving Incrementally from Current Policy to Current Law” at http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=367 (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 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 0.2 4.4 44.6 58.7 73.8 2.9 Percent Change in After-Tax Income 4 Share of Total Federal Tax Change 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.8 -1.0 -0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 14.4 25.1 60.1 100.0 Average Federal Tax Change Dollars 0 0 0 0 0 0 0 4 440 4,349 20,526 115 Percent 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 2.3 2.1 0.7 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 -0.1 -0.1 -0.2 0.0 0.1 0.3 0.0 Under the Proposal 0.2 0.7 1.9 2.9 3.7 10.1 9.9 25.0 17.1 7.8 20.7 100.0 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 0.6 0.7 0.2 Under the Proposal 5.3 4.6 8.8 12.9 15.7 17.8 19.5 22.0 24.9 27.0 32.0 21.4 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2012 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) 16,958 24,305 21,133 16,074 12,909 22,702 14,431 20,606 5,930 1,048 531 157,348 Percent of Total 10.8 15.5 13.4 10.2 8.2 14.4 9.2 13.1 3.8 0.7 0.3 100.0 Average Income (Dollars) Average Federal Tax Burden (Dollars) 5,723 15,533 25,808 36,190 46,615 64,099 90,195 141,257 296,062 704,969 3,114,004 76,169 305 708 2,275 4,683 7,304 11,396 17,592 30,997 73,286 186,116 975,237 16,156 Average AfterTax Income 4 (Dollars) 5,418 14,825 23,533 31,506 39,311 52,703 72,603 110,260 222,777 518,854 2,138,767 60,012 Average Federal Tax Rate 5 5.3 4.6 8.8 12.9 15.7 17.8 19.5 21.9 24.8 26.4 31.3 21.2 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 0.8 3.2 4.6 4.9 5.0 12.1 10.9 24.3 14.7 6.2 13.8 100.0 1.0 3.8 5.3 5.4 5.4 12.7 11.1 24.1 14.0 5.8 12.0 100.0 0.2 0.7 1.9 3.0 3.7 10.2 10.0 25.1 17.1 7.7 20.4 100.0 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Number of AMT Taxpayers (millions). Baseline: 4.6 Proposal: 3.8 (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 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 2.5 41.0 53.5 64.7 0.8 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 -0.6 -0.8 -0.1 Share of Total Federal Tax Change 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.7 20.3 19.7 59.4 100.0 Average Federal Tax Change Dollars 0 0 0 0 0 0 0 4 491 2,725 15,148 28 Percent 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 1.3 1.5 0.3 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 -0.1 0.0 -0.1 0.0 0.0 0.1 0.0 Under the Proposal 0.9 2.9 5.9 7.3 8.4 18.6 11.9 17.9 9.8 4.4 11.8 100.0 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 0.4 0.5 0.1 Under the Proposal 8.5 8.4 13.3 17.5 19.6 21.9 24.2 25.2 27.2 30.0 34.6 21.6 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2012 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 12,161 14,889 11,204 7,555 6,018 8,766 3,599 3,384 787 138 75 68,932 17.6 21.6 16.3 11.0 8.7 12.7 5.2 4.9 1.1 0.2 0.1 100.0 Average Income (Dollars) 5,710 15,384 25,667 36,120 46,555 63,234 89,193 137,406 300,163 697,814 2,972,435 43,878 Average Federal Tax Burden (Dollars) 483 1,291 3,420 6,309 9,146 13,851 21,590 34,564 81,033 206,664 1,013,931 9,444 Average AfterTax Income 4 (Dollars) 5,227 14,093 22,247 29,810 37,409 49,383 67,604 102,842 219,130 491,150 1,958,504 34,433 Average Federal Tax Rate 5 8.5 8.4 13.3 17.5 19.6 21.9 24.2 25.2 27.0 29.6 34.1 21.5 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 2.3 7.6 9.5 9.0 9.3 18.3 10.6 15.4 7.8 3.2 7.3 100.0 2.7 8.8 10.5 9.5 9.5 18.2 10.3 14.7 7.3 2.9 6.2 100.0 0.9 3.0 5.9 7.3 8.5 18.7 11.9 18.0 9.8 4.4 11.6 100.0 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 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 4.7 46.1 59.4 75.5 6.3 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.9 -1.0 -0.3 Share of Total Federal Tax Change 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 13.9 26.2 59.6 100.0 Average Federal Tax Change Dollars 0 0 0 0 0 0 0 4 433 4,621 21,168 252 Percent 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 2.5 2.2 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 0.2 0.3 0.0 Under the Proposal 0.0 0.1 0.3 0.7 1.2 5.4 8.5 28.6 20.9 9.6 24.6 100.0 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 0.7 0.2 Under the Proposal 4.8 2.8 4.6 7.6 10.5 14.2 17.5 21.2 24.5 26.6 31.5 22.2 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2012 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 4,097 4,842 4,391 4,095 9,883 9,149 16,193 4,941 876 435 61,357 3.5 6.7 7.9 7.2 6.7 16.1 14.9 26.4 8.1 1.4 0.7 100.0 Average Income (Dollars) 4,766 16,031 25,959 36,302 46,760 65,241 90,792 142,545 295,420 706,519 3,075,014 126,020 Average Federal Tax Burden (Dollars) 228 441 1,186 2,752 4,890 9,275 15,852 30,250 72,041 183,041 947,672 27,671 Average AfterTax Income 4 (Dollars) 4,538 15,590 24,773 33,550 41,870 55,967 74,940 112,295 223,380 523,478 2,127,342 98,349 Average Federal Tax Rate 5 4.8 2.8 4.6 7.6 10.5 14.2 17.5 21.2 24.4 25.9 30.8 22.0 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 0.1 0.9 1.6 2.1 2.5 8.3 10.7 29.9 18.9 8.0 17.3 100.0 0.2 1.1 2.0 2.4 2.8 9.2 11.4 30.1 18.3 7.6 15.3 100.0 0.0 0.1 0.3 0.7 1.2 5.4 8.5 28.9 21.0 9.4 24.3 100.0 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 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 0.8 16.0 57.9 75.7 0.2 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.1 -0.7 -0.9 0.0 Share of Total Federal Tax Change 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 12.6 26.8 60.5 100.0 Average Federal Tax Change Dollars 0 0 0 0 0 0 0 1 280 3,742 18,669 14 Percent 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 2.2 2.0 0.2 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 -0.1 0.0 0.0 0.0 0.1 0.1 0.0 Under the Proposal -0.9 -3.1 1.8 9.2 11.3 27.4 17.7 18.8 7.5 2.9 7.4 100.0 Average Federal Tax Rate 5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.6 0.6 0.0 Under the Proposal -7.8 -5.7 2.1 9.6 14.1 17.4 20.3 22.9 24.2 25.5 32.6 13.9 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2012 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 2,483 5,029 4,757 3,767 2,449 3,559 1,389 877 150 24 11 24,547 10.1 20.5 19.4 15.4 10.0 14.5 5.7 3.6 0.6 0.1 0.0 100.0 Average Income (Dollars) 6,647 15,579 25,971 36,157 46,569 63,082 89,214 132,993 294,130 686,382 2,985,055 41,760 Average Federal Tax Burden (Dollars) -520 -890 539 3,468 6,564 10,964 18,114 30,472 71,028 171,415 952,978 5,786 Average AfterTax Income 4 (Dollars) 7,167 16,470 25,432 32,689 40,006 52,118 71,100 102,521 223,101 514,967 2,032,077 35,974 Average Federal Tax Rate 5 -7.8 -5.7 2.1 9.6 14.1 17.4 20.3 22.9 24.2 25.0 31.9 13.9 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 1.6 7.6 12.1 13.3 11.1 21.9 12.1 11.4 4.3 1.6 3.2 100.0 2.0 9.4 13.7 14.0 11.1 21.0 11.2 10.2 3.8 1.4 2.5 100.0 -0.9 -3.2 1.8 9.2 11.3 27.5 17.7 18.8 7.5 2.9 7.3 100.0 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 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 0.1 4.9 39.9 68.3 84.0 4.1 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 -1.2 -1.2 -0.3 Share of Total Federal Tax Change 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 13.2 29.4 56.9 100.0 Average Federal Tax Change Dollars 0 0 0 0 0 0 0 4 447 6,205 25,676 189 Percent 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 3.2 2.6 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 0.2 0.3 0.0 Under the Proposal -0.2 -0.9 -0.1 1.4 2.3 7.7 9.9 28.8 20.6 9.0 21.5 100.0 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 0.9 0.8 0.2 Under the Proposal -11.6 -9.4 -0.8 7.6 12.6 15.9 18.4 21.5 25.2 28.4 33.1 21.0 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2012 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 2,968 5,639 5,683 4,891 3,849 7,425 5,841 9,319 2,750 441 206 49,155 6.0 11.5 11.6 10.0 7.8 15.1 11.9 19.0 5.6 0.9 0.4 100.0 Average Income (Dollars) 6,252 15,769 25,918 36,161 46,701 64,368 90,740 142,137 293,742 705,334 3,105,769 95,419 Average Federal Tax Burden (Dollars) -725 -1,488 -196 2,764 5,859 10,220 16,678 30,481 73,525 194,308 1,002,880 19,886 Average AfterTax Income 4 (Dollars) 6,978 17,257 26,114 33,397 40,842 54,148 74,062 111,656 220,217 511,025 2,102,889 75,533 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 -11.6 -9.4 -0.8 7.6 12.6 15.9 18.4 21.5 25.0 27.6 32.3 20.8 0.4 1.9 3.1 3.8 3.8 10.2 11.3 28.2 17.2 6.6 13.7 100.0 0.6 2.6 4.0 4.4 4.2 10.8 11.7 28.0 16.3 6.1 11.7 100.0 -0.2 -0.9 -0.1 1.4 2.3 7.8 10.0 29.1 20.7 8.8 21.1 100.0 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Note: Tax units with children are those claiming an exemption for children at home or away from home. (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0160 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Level, 2012 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 0.3 2.8 43.8 42.0 61.8 2.5 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 -0.4 -0.7 -0.2 Share of Total Federal Tax Change 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 14.5 18.0 67.2 100.0 Average Federal Tax Change Dollars 0 0 0 0 0 0 0 3 357 2,035 14,137 91 Percent 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 1.1 1.5 0.7 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 0.1 0.6 1.4 1.5 1.9 7.2 7.4 18.8 19.3 10.8 30.9 100.0 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 0.3 0.5 0.1 Under the Proposal 3.1 2.6 4.5 5.9 7.5 10.6 14.0 18.7 23.7 25.9 31.8 18.2 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2012 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 2,305 6,471 5,084 2,999 2,259 4,405 2,504 2,986 1,128 245 132 30,543 7.6 21.2 16.7 9.8 7.4 14.4 8.2 9.8 3.7 0.8 0.4 100.0 Average Income (Dollars) 6,366 15,655 25,560 36,054 46,537 64,489 89,136 141,589 304,121 709,954 3,095,895 75,737 Average Federal Tax Burden (Dollars) 200 400 1,145 2,139 3,486 6,828 12,457 26,517 71,663 182,036 971,072 13,674 Average AfterTax Income 4 (Dollars) 6,166 15,254 24,415 33,915 43,051 57,661 76,679 115,073 232,459 527,918 2,124,822 62,063 Average Federal Tax Rate 5 3.1 2.6 4.5 5.9 7.5 10.6 14.0 18.7 23.6 25.6 31.4 18.1 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 5.6 4.7 4.5 12.3 9.7 18.3 14.8 7.5 17.7 100.0 0.8 5.2 6.6 5.4 5.1 13.4 10.1 18.1 13.8 6.8 14.8 100.0 0.1 0.6 1.4 1.5 1.9 7.2 7.5 19.0 19.4 10.7 30.7 100.0 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older. (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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.