30-Jan-08
PRELIMINARY RESULTS -- UPDATED
http://www.taxpolicycenter.org
Table T08-0053
Individual Income Tax Measures in Senate Stimulus Proposal
As Reported Out of Committee
Distribution of Federal Tax Change by Cash Income Level, 2008 1
Summary Table
Cash Income Level
(thousands of 2006
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
60.9
93.7
98.3
99.0
99.5
99.8
99.8
98.5
71.4
12.1
5.0
91.8
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income 4
7.0
4.4
3.2
2.5
2.1
1.7
1.4
1.0
0.4
0.0
0.0
1.4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
6.0
14.0
13.0
10.4
8.5
16.5
11.8
16.2
3.3
0.1
0.0
100.0
-389
-649
-747
-787
-796
-895
-1,021
-1,082
-816
-122
-49
-775
Average Federal Tax Rate 5
Change (%
Points)
-6.7
-4.2
-2.9
-2.2
-1.7
-1.4
-1.1
-0.8
-0.3
0.0
0.0
-1.1
Under the
Proposal
-2.6
0.2
6.7
11.7
14.9
17.3
19.0
21.7
24.9
26.9
30.9
20.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-2).
Number of AMT Taxpayers (millions). Baseline:
4.1
Proposal:
4.1
(1) Calendar year. Baseline is 2008 current law assuming extension and indexation for inflation of the 2007 AMT patch. The proposal provides a refundable basic
credit of $500 ($1,000 for married couples filing a joint return) available to all tax filers with at least $3000 of earned income and Social Security benefits or at least $1
of income tax liability after nonrefundable credits excluding the child credit. For any tax unit with at least $1 of basic credit, the proposal provides an additional,
refundable, $300 credit for each child-tax-credit-eligible child. The combined credit phases out at a 5 percent rate above $150,000 of AGI ($300,000 for married
couples filing jointly). Our estimates are based on 2008 incomes; the proposal actually allows the rebate to be based on 2007 income if it results in a higher amount.
Our estimates assume that all potential beneficiaries claim the credit.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
30-Jan-08
PRELIMINARY RESULTS -- UPDATED
http://www.taxpolicycenter.org
Table T08-0053
Individual Income Tax Measures in Senate Stimulus Proposal
As Reported Out of Committee
Distribution of Federal Tax Change by Cash Income Level, 2008 1
Detail Table
Cash Income Level
(thousands of 2006
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
60.9
93.7
98.3
99.0
99.5
99.8
99.8
98.5
71.4
12.1
5.0
91.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
7.0
4.4
3.2
2.5
2.1
1.7
1.4
1.0
0.4
0.0
0.0
1.4
Share of Total
Federal Tax
Change
6.0
14.0
13.0
10.4
8.5
16.5
11.8
16.2
3.3
0.1
0.0
100.0
Average Federal Tax Change
Dollars
Percent
-389
-649
-747
-787
-796
-895
-1,021
-1,082
-816
-122
-49
-775
-164.5
-95.3
-30.2
-15.6
-10.3
-7.5
-5.6
-3.4
-1.1
-0.1
0.0
-5.2
Share of Federal Taxes
Change (%
Points)
-0.3
-0.7
-0.6
-0.4
-0.2
-0.3
-0.1
0.5
0.7
0.4
1.0
0.0
Under the
Proposal
-0.1
0.0
1.7
3.1
4.1
11.3
10.9
25.2
16.8
7.1
19.8
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.7
-4.2
-2.9
-2.2
-1.7
-1.4
-1.1
-0.8
-0.3
0.0
0.0
-1.1
Under the
Proposal
-2.6
0.2
6.7
11.7
14.9
17.3
19.0
21.7
24.9
26.9
30.9
20.1
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2008
Cash Income Level
(thousands of 2006
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
18,164
25,275
20,401
15,452
12,430
21,580
13,470
17,502
4,784
793
421
150,867
Percent of
Total
12.0
16.8
13.5
10.2
8.2
14.3
8.9
11.6
3.2
0.5
0.3
100.0
Average
Income
(Dollars)
5,810
15,564
25,811
36,328
46,686
64,226
90,172
140,584
299,277
707,298
3,228,212
69,872
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-2).
Number of AMT Taxpayers (millions). Baseline:
4.1
Average
Federal Tax
Burden
(Dollars)
236
681
2,474
5,046
7,758
12,011
18,154
31,563
75,288
190,695
996,442
14,831
Proposal:
Average AfterTax Income 4
(Dollars)
5,574
14,883
23,337
31,281
38,928
52,215
72,018
109,021
223,989
516,603
2,231,770
55,041
Average
Federal Tax
Rate 5
4.1
4.4
9.6
13.9
16.6
18.7
20.1
22.5
25.2
27.0
30.9
21.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.0
3.7
5.0
5.3
5.5
13.2
11.5
23.3
13.6
5.3
12.9
100.0
1.2
4.5
5.7
5.8
5.8
13.6
11.7
23.0
12.9
4.9
11.3
100.0
0.2
0.8
2.3
3.5
4.3
11.6
10.9
24.7
16.1
6.8
18.8
100.0
4.1
(1) Calendar year. Baseline is 2008 current law assuming extension and indexation for inflation of the 2007 AMT patch. The proposal provides a refundable basic credit of $500 ($1,000 for married couples filing a joint return)
available to all tax filers with at least $3000 of earned income and Social Security benefits or at least $1 of income tax liability after nonrefundable credits excluding the child credit. For any tax unit with at least $1 of basic
credit, the proposal provides an additional, refundable, $300 credit for each child-tax-credit-eligible child. The combined credit phases out at a 5 percent rate above $150,000 of AGI ($300,000 for married couples filing
jointly). Our estimates are based on 2008 incomes; the proposal actually allows the rebate to be based on 2007 income if it results in a higher amount. Our estimates assume that all potential beneficiaries claim the credit.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.