21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
0.4
4.1
14.6
18.2
21.7
28.2
37.5
71.0
58.9
61.3
70.6
25.9
Percent
Change in
After-Tax
4
Income
0.0
-0.1
-0.2
-0.2
-0.2
-0.2
-0.3
-0.7
-0.3
-0.1
0.0
-0.3
Share of Total
Federal Tax
Change
0.0
0.6
3.7
3.8
3.3
6.2
10.3
55.4
12.8
2.5
1.5
100.0
Average
Federal Tax
Change ($)
1
7
53
72
77
83
217
817
654
724
847
193
Average Federal Tax Rate5
Change (%
Points)
0.0
0.1
0.2
0.2
0.2
0.1
0.2
0.6
0.2
0.1
0.0
0.3
Under the
Proposal
5.4
4.9
9.9
14.0
16.4
18.4
20.2
22.9
25.6
27.9
33.7
22.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.7
Proposal: 2.9
** 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; restoration of the personal
exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10 percent for tax units in 15 percent
bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the
student loan interest deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is
restoration of marriage penalties by setting the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to 1.67 times those for singles and
making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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 T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
Increase
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
0.4
4.1
14.6
18.2
21.7
28.2
37.5
71.0
58.9
61.3
70.6
25.9
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.0
-0.1
-0.2
-0.2
-0.2
-0.2
-0.3
-0.7
-0.3
-0.1
0.0
-0.3
0.0
0.6
3.7
3.8
3.3
6.2
10.3
55.4
12.8
2.5
1.5
100.0
Average Federal Tax Change
Dollars
1
7
53
72
77
83
217
817
654
724
847
193
Percent
0.2
1.0
2.1
1.4
1.0
0.7
1.2
2.6
0.9
0.4
0.1
1.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
-0.1
-0.1
-0.2
0.0
Under the
Proposal
0.2
0.7
2.0
3.1
3.7
10.0
9.8
24.9
16.8
7.7
20.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.1
0.2
0.2
0.2
0.1
0.2
0.6
0.2
0.1
0.0
0.3
Under the
Proposal
5.4
4.9
9.9
14.0
16.4
18.4
20.2
22.9
25.6
27.9
33.7
22.3
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
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
3
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)
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
Average
Federal Tax
Burden
(Dollars)
308
755
2,512
4,990
7,578
11,700
17,988
31,494
74,989
196,006
1,048,648
16,773
Average AfterTax Income 4
(Dollars)
5,415
14,778
23,295
31,200
39,038
52,400
72,207
109,762
221,073
508,963
2,065,356
59,395
Average
Federal Tax
Rate 5
5.4
4.9
9.7
13.8
16.3
18.3
19.9
22.3
25.3
27.8
33.7
22.0
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
11.2
24.2
14.0
5.7
11.7
100.0
0.2
0.7
2.0
3.0
3.7
10.1
9.8
24.6
16.9
7.8
21.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.7
Proposal: 2.9
(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; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is restoration of marriage penalties by setting the standard deduction and 10 and 15
percent tax brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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 T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
1.2
-3.0
-5.3
6.5
0.3
-5.0
8.8
15.0
0.0
-1.3
2.5
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
0
0
0
0
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.9
2.9
5.8
7.2
8.3
18.4
11.8
17.9
9.9
4.5
12.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
8.5
8.5
13.5
17.6
19.8
22.1
24.4
25.6
27.9
31.2
36.6
22.0
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
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)
484
1,301
3,460
6,356
9,204
13,948
21,755
35,106
83,874
218,009
1,087,577
9,646
Average AfterTax Income 4
(Dollars)
5,227
14,083
22,208
29,764
37,351
49,286
67,439
102,300
216,289
479,804
1,884,858
34,232
Average
Federal Tax
Rate 5
8.5
8.5
13.5
17.6
19.8
22.1
24.4
25.6
27.9
31.2
36.6
22.0
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
8.9
10.5
9.5
9.5
18.3
10.3
14.7
7.2
2.8
6.0
100.0
0.9
2.9
5.8
7.2
8.3
18.4
11.8
17.9
9.9
4.5
12.2
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; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is restoration of marriage penalties by setting the standard deduction and 10 and 15
percent tax brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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 T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
2.6
19.0
57.9
60.9
62.5
60.7
56.3
89.8
70.1
72.5
84.3
63.6
Percent Change
in After-Tax
Income 4
-0.1
-0.2
-0.9
-0.8
-0.5
-0.3
-0.4
-0.9
-0.4
-0.2
-0.1
-0.5
Share of Total
Federal Tax
Change
0.0
0.5
3.6
3.8
3.1
5.5
10.0
56.5
13.0
2.5
1.5
100.0
Average Federal Tax Change
Dollars
5
38
222
255
223
164
325
1,036
782
860
1,022
484
Percent
2.0
7.4
14.9
8.0
4.2
1.7
2.0
3.4
1.1
0.5
0.1
1.7
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.5
-0.1
-0.1
-0.4
0.0
Under the
Proposal
0.0
0.1
0.5
0.8
1.3
5.4
8.5
28.6
20.4
9.4
24.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.1
0.2
0.9
0.7
0.5
0.3
0.4
0.7
0.3
0.1
0.0
0.4
Under the
Proposal
5.3
3.4
6.6
9.5
11.8
15.1
18.4
22.3
25.2
27.4
33.2
23.2
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)
246
509
1,493
3,189
5,313
9,701
16,338
30,750
73,538
192,717
1,019,650
28,804
Average AfterTax Income 4
(Dollars)
4,521
15,522
24,466
33,113
41,447
55,540
74,454
111,795
221,882
513,802
2,055,364
97,216
Average
Federal Tax
Rate 5
5.2
3.2
5.8
8.8
11.4
14.9
18.0
21.6
24.9
27.3
33.2
22.9
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
2.9
9.2
11.4
30.4
18.4
7.5
15.0
100.0
0.0
0.1
0.4
0.8
1.2
5.4
8.5
28.2
20.6
9.6
25.1
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; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is restoration of marriage penalties by setting the standard deduction and 10 and 15
percent tax brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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 T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.2
-1.1
-1.1
4.2
2.1
-22.1
7.6
-7.2
-3.8
2.2
6.0
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
0
0
0
0
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-0.8
-2.4
3.7
10.2
11.4
26.5
16.8
17.6
7.1
2.8
7.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-7.7
-4.8
4.5
11.5
15.3
18.2
20.8
23.1
24.7
26.2
34.1
15.0
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
2,483
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)
-514
-745
1,180
4,158
7,126
11,448
18,575
30,738
72,680
180,096
1,016,347
6,255
Average AfterTax Income 4
(Dollars)
7,161
16,325
24,791
31,999
39,444
51,634
70,639
102,256
221,450
506,286
1,968,708
35,505
Average
Federal Tax
Rate 5
-7.7
-4.8
4.5
11.5
15.3
18.2
20.8
23.1
24.7
26.2
34.1
15.0
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
13.5
13.8
11.1
21.1
11.3
10.3
3.8
1.4
2.5
100.0
-0.8
-2.4
3.7
10.2
11.4
26.5
16.8
17.6
7.1
2.8
7.2
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; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is restoration of marriage penalties by setting the standard deduction and 10 and 15
percent tax brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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 T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
Increase
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
0.4
5.7
24.0
30.0
36.6
35.0
36.4
79.7
58.5
72.8
84.7
38.3
Percent Change
in After-Tax
Income 4
0.0
-0.1
-0.6
-0.6
-0.4
-0.2
-0.2
-0.8
-0.3
-0.2
-0.1
-0.4
Share of Total
Federal Tax
Change
0.0
0.6
5.5
6.0
4.4
5.2
6.9
55.9
11.5
2.6
1.4
100.0
Average Federal Tax Change
Dollars
2
15
142
179
167
103
174
881
614
850
1,015
299
Percent
-0.3
-1.2
23.8
4.9
2.5
0.9
1.0
2.8
0.8
0.4
0.1
1.4
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.4
-0.1
-0.1
-0.3
0.0
Under the
Proposal
-0.2
-0.7
0.4
1.8
2.5
7.9
9.9
28.6
19.9
8.7
21.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.1
0.6
0.5
0.4
0.2
0.2
0.6
0.2
0.1
0.0
0.3
Under the
Proposal
-11.3
-8.2
2.9
10.7
14.6
17.2
19.4
22.5
25.6
29.1
34.6
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
2,968
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)
-708
-1,306
598
3,673
6,654
10,976
17,438
31,121
74,668
204,144
1,072,221
20,923
Average AfterTax Income 4
(Dollars)
6,961
17,075
25,320
32,488
40,046
53,392
73,302
111,016
219,074
501,190
2,033,547
74,496
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
-11.3
-8.3
2.3
10.2
14.3
17.1
19.2
21.9
25.4
28.9
34.5
21.9
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
3.9
4.3
4.2
10.8
11.7
28.3
16.5
6.0
11.4
100.0
-0.2
-0.7
0.3
1.8
2.5
7.9
9.9
28.2
20.0
8.8
21.5
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; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is restoration of marriage penalties by setting the standard deduction and 10 and 15
percent tax brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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 T10-0168
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Restore Marriage Penalties: Standard Deduction, Bottom Tax Brackets for Couples, and EITC Phaseout Threshold
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
Increase
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
0.2
1.4
13.5
18.0
18.9
38.9
47.7
65.6
61.2
47.2
58.3
24.5
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.3
-0.7
-0.3
-0.1
0.0
-0.3
0.0
0.2
2.8
2.3
1.9
9.1
12.9
49.0
17.0
2.9
1.9
100.0
Average Federal Tax Change
Dollars
0
2
27
37
42
101
252
806
742
574
705
161
Percent
0.1
0.4
2.3
1.7
1.2
1.5
2.0
2.9
1.0
0.3
0.1
1.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.3
0.0
-0.1
-0.3
0.0
Under the
Proposal
0.1
0.6
1.4
1.5
1.8
7.0
7.3
18.9
19.2
10.7
31.4
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.1
0.1
0.1
0.2
0.3
0.6
0.2
0.1
0.0
0.2
Under the
Proposal
3.2
2.6
4.7
6.2
7.7
11.0
14.6
19.9
25.0
27.4
34.2
19.3
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
405
1,171
2,192
3,556
6,997
12,778
27,383
75,149
194,182
1,058,280
14,429
Average AfterTax Income 4
(Dollars)
6,166
15,249
24,389
33,863
42,981
57,492
76,357
114,207
228,972
515,772
2,037,615
61,309
Average
Federal Tax
Rate 5
3.2
2.6
4.6
6.1
7.6
10.9
14.3
19.3
24.7
27.4
34.2
19.1
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
5.3
6.6
5.4
5.2
13.5
10.2
18.2
13.8
6.8
14.4
100.0
0.1
0.6
1.4
1.5
1.8
7.0
7.3
18.6
19.2
10.8
31.7
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; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income; repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC). Policy is restoration of marriage penalties by setting the standard deduction and 10 and 15
percent tax brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles.
(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.