21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
1
Distribution of Federal Tax Change by Cash Income Level, 2012
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
1.1
4.5
12.5
29.6
38.5
60.3
22.1
14.5
12.5
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.6
-0.7
-0.9
-0.1
0.0
-0.4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
0.0
0.0
0.2
1.2
7.4
16.6
40.7
32.1
1.4
0.3
100.0
0
0
0
5
35
123
433
741
2,035
498
235
239
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.1
0.2
0.5
0.5
0.7
0.1
0.0
0.3
Under the
Proposal
5.4
5.3
10.8
15.0
17.5
19.6
21.7
24.6
27.3
28.5
33.8
23.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 1.2
Proposal: 19.7
** 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; removal of low- and middleincome tax cuts (eliminate the 10 percent bracket and increase the 25 and
28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination
of the AMT patch.
(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 T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
With Tax Cut
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
0.0
0.0
0.0
1.1
4.5
12.5
29.6
38.5
60.3
22.1
14.5
12.5
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.6
-0.7
-0.9
-0.1
0.0
-0.4
0.0
0.0
0.0
0.2
1.2
7.4
16.6
40.7
32.1
1.4
0.3
100.0
Average Federal Tax Change
Dollars
0
0
0
5
35
123
433
741
2,035
498
235
239
Percent
0.0
0.0
0.0
0.1
0.4
1.0
2.3
2.2
2.6
0.3
0.0
1.4
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.2
-0.1
-0.3
0.0
Under the
Proposal
0.2
0.7
2.1
3.1
3.7
10.2
10.1
25.5
17.0
7.5
19.9
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.1
0.2
0.5
0.5
0.7
0.1
0.0
0.3
Under the
Proposal
5.4
5.3
10.8
15.0
17.5
19.6
21.7
24.6
27.3
28.5
33.8
23.5
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2012
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)
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)
309
827
2,781
5,415
8,116
12,461
19,163
34,059
78,845
200,326
1,053,615
17,653
Average AfterTax Income 4
(Dollars)
5,414
14,706
23,026
30,774
38,499
51,639
71,032
107,198
217,218
504,643
2,060,389
58,516
Average
Federal Tax
Rate 5
5.4
5.3
10.8
15.0
17.4
19.4
21.3
24.1
26.6
28.4
33.8
23.2
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
3.9
5.3
5.4
5.4
12.7
11.1
24.0
14.0
5.7
11.9
100.0
0.2
0.7
2.1
3.1
3.8
10.2
10.0
25.3
16.8
7.6
20.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 1.2
Proposal: 19.7
(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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination of the AMT patch.
(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 T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
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
0.0
0.0
0.0
0.1
0.5
2.1
4.1
9.6
30.3
17.6
13.9
1.4
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.3
0.0
0.0
-0.1
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.0
0.7
13.3
14.3
36.6
32.8
1.7
0.6
100.0
Average Federal Tax Change
Dollars
0
0
0
0
2
24
64
174
669
203
123
23
Percent
0.0
0.0
0.0
0.0
0.0
0.2
0.3
0.5
0.8
0.1
0.0
0.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
Under the
Proposal
0.9
3.0
6.0
7.3
8.3
18.4
11.9
18.1
9.9
4.4
11.7
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.0
0.0
0.1
Under the
Proposal
8.5
9.1
14.6
18.6
20.7
23.1
25.7
27.0
29.0
31.7
36.7
23.0
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
1,400
3,748
6,727
9,623
14,596
22,897
36,982
86,447
220,775
1,090,704
10,064
Average AfterTax Income 4
(Dollars)
5,227
13,984
21,919
29,392
36,932
48,638
66,296
100,424
213,716
477,039
1,881,731
33,814
Average
Federal Tax
Rate 5
8.5
9.1
14.6
18.6
20.7
23.1
25.7
26.9
28.8
31.6
36.7
22.9
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
10.2
14.6
7.2
2.8
6.0
100.0
0.9
3.0
6.1
7.3
8.4
18.4
11.9
18.0
9.8
4.4
11.8
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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination of the AMT patch.
(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 T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
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
0.0
0.0
0.0
0.1
1.6
9.3
33.6
43.0
64.7
23.0
14.7
23.6
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
-0.1
-0.7
-0.8
-1.0
-0.1
0.0
-0.5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.1
2.4
15.1
44.2
36.3
1.6
0.4
100.0
Average Federal Tax Change
Dollars
0
0
0
0
5
75
506
836
2,253
557
256
500
Percent
0.0
0.0
0.0
0.0
0.1
0.7
2.9
2.5
2.9
0.3
0.0
1.6
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
0.1
0.2
0.3
-0.1
-0.4
0.0
Under the
Proposal
0.0
0.1
0.5
0.9
1.3
5.6
8.7
29.3
20.8
9.1
23.5
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.6
0.6
0.8
0.1
0.0
0.4
Under the
Proposal
5.3
3.4
7.0
10.3
12.9
16.4
19.9
24.1
27.1
28.0
33.3
24.5
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)
251
551
1,817
3,720
6,015
10,600
17,560
33,529
77,696
197,349
1,025,038
30,417
Average AfterTax Income 4
(Dollars)
4,516
15,480
24,142
32,583
40,745
54,641
73,232
109,016
217,724
509,170
2,049,976
95,603
Average
Federal Tax
Rate 5
5.3
3.4
7.0
10.3
12.9
16.3
19.3
23.5
26.3
27.9
33.3
24.1
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
15.2
100.0
0.0
0.1
0.5
0.9
1.3
5.6
8.6
29.1
20.6
9.3
23.9
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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination of the AMT patch.
(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 T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
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
0.0
0.0
0.0
3.5
17.1
43.1
68.5
64.1
74.1
18.2
16.3
15.1
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
-0.3
-0.9
-1.3
-1.1
-1.0
0.0
0.0
-0.5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
1.0
7.0
35.0
28.2
21.6
7.0
0.1
0.0
100.0
Average Federal Tax Change
Dollars
0
0
0
13
132
450
929
1,127
2,132
167
184
186
Percent
0.0
0.0
0.0
0.3
1.7
3.7
4.8
3.5
2.9
0.1
0.0
2.8
Share of Federal Taxes
Change (%
Points)
0.0
0.1
-0.1
-0.3
-0.1
0.2
0.3
0.1
0.0
-0.1
-0.2
0.0
Under the
Proposal
-0.8
-2.2
3.8
10.4
11.5
26.7
17.0
17.5
6.9
2.6
6.6
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.3
0.7
1.0
0.9
0.7
0.0
0.0
0.5
Under the
Proposal
-7.7
-4.8
5.1
12.7
16.7
19.8
22.8
25.0
25.9
26.7
34.2
16.2
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
2,483
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
-740
1,333
4,563
7,662
12,035
19,393
32,097
74,049
183,209
1,020,067
6,594
Average AfterTax Income 4
(Dollars)
7,161
16,319
24,639
31,594
38,908
51,047
69,820
100,896
220,081
503,173
1,964,988
35,166
Average
Federal Tax
Rate 5
-7.7
-4.8
5.1
12.6
16.5
19.1
21.7
24.1
25.2
26.7
34.2
15.8
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
2.1
9.5
13.6
13.8
11.0
21.1
11.2
10.3
3.8
1.4
2.5
100.0
-0.8
-2.3
3.9
10.6
11.6
26.5
16.6
17.4
6.9
2.7
6.8
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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination of the AMT patch.
(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 T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
With Tax Cut
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
0.0
0.0
0.1
3.4
13.8
32.0
64.3
71.2
78.2
19.8
10.8
32.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
-0.3
-0.6
-1.3
-1.3
-1.4
-0.1
0.0
-0.8
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.2
1.4
7.9
19.0
43.8
26.9
0.7
0.1
100.0
Average Federal Tax Change
Dollars
0
0
0
14
107
316
962
1,391
2,902
459
123
603
Percent
0.0
0.0
0.0
0.3
1.5
2.7
5.2
4.1
3.7
0.2
0.0
2.7
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.4
0.2
-0.2
-0.5
0.0
Under the
Proposal
-0.2
-0.7
0.4
1.8
2.6
8.1
10.2
29.3
20.1
8.3
19.9
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.2
0.5
1.1
1.0
1.0
0.1
0.0
0.6
Under the
Proposal
-11.3
-8.2
3.3
11.6
16.0
18.8
21.4
24.6
27.7
29.7
34.7
23.8
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2012
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)
-706
-1,288
847
4,187
7,354
11,770
18,473
33,633
78,458
209,179
1,077,910
22,061
Average AfterTax Income 4
(Dollars)
6,958
17,057
25,071
31,974
39,346
52,598
72,267
108,505
215,284
496,155
2,027,859
73,359
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
-8.2
3.3
11.6
15.8
18.3
20.4
23.7
26.7
29.7
34.7
23.1
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
2.7
4.0
4.3
4.2
10.8
11.7
28.0
16.4
6.1
11.6
100.0
-0.2
-0.7
0.4
1.9
2.6
8.1
10.0
28.9
19.9
8.5
20.5
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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination of the AMT patch.
(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 T10-0172
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
With Tax Cut
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
0.0
0.0
0.0
0.1
0.2
1.3
4.4
9.4
41.7
31.3
21.0
3.4
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.5
-0.2
0.0
-0.1
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.1
0.1
2.1
5.4
22.3
60.1
8.1
2.0
100.0
Average Federal Tax Change
Dollars
0
0
0
0
1
11
50
171
1,224
754
339
75
Percent
0.0
0.0
0.0
0.0
0.0
0.1
0.4
0.6
1.6
0.4
0.0
0.5
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
-0.1
0.0
Under the
Proposal
0.1
0.6
1.4
1.6
1.9
7.3
7.6
19.3
19.4
10.5
30.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.4
0.1
0.0
0.1
Under the
Proposal
3.2
2.8
5.1
6.8
8.3
12.0
15.7
21.2
26.3
27.9
34.3
20.1
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2012
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)
201
432
1,313
2,440
3,880
7,699
13,944
29,909
78,835
197,391
1,062,418
15,130
Average AfterTax Income 4
(Dollars)
6,166
15,222
24,247
33,614
42,657
56,791
75,191
111,681
225,286
512,563
2,033,477
60,607
Average
Federal Tax
Rate 5
3.2
2.8
5.1
6.8
8.3
11.9
15.6
21.1
25.9
27.8
34.3
20.0
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
6.7
5.5
5.2
13.5
10.2
18.0
13.7
6.8
14.5
100.0
0.1
0.6
1.4
1.6
1.9
7.3
7.6
19.3
19.2
10.5
30.4
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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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 elimination of the AMT patch.
(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.