18-May-10
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 T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Summary Table
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
16.5
19.5
23.2
26.7
26.6
27.9
33.6
22.6
1.7
1.4
0.2
22.9
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income 4
2.4
1.8
1.4
0.9
0.7
0.6
0.6
0.3
0.0
0.0
0.0
0.5
Share of Total
Federal Tax
Change
6.6
15.9
15.1
10.4
7.6
14.7
15.8
13.2
0.2
0.0
0.0
100.0
Average
Federal Tax
Change ($)
-139
-257
-307
-268
-255
-298
-444
-296
-17
-14
-3
-267
Average Federal Tax Rate 5
Change (%
Points)
-2.3
-1.7
-1.2
-0.8
-0.6
-0.5
-0.5
-0.2
0.0
0.0
0.0
-0.4
Under the
Proposal
2.3
3.9
9.7
14.2
16.5
18.8
20.9
24.4
27.3
28.4
33.7
22.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 17.1
Proposal: 14.5
(1) Calendar year. Baseline is current law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit
amount to $1,000, and allowing refundability of 15% of earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.
18-May-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Detail 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 3
With Tax Cut
16.5
19.5
23.2
26.7
26.6
27.9
33.6
22.6
1.7
1.4
0.2
22.9
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
4
Income
2.4
1.8
1.4
0.9
0.7
0.6
0.6
0.3
0.0
0.0
0.0
0.5
Share of Total
Federal Tax
Change
6.6
15.9
15.1
10.4
7.6
14.7
15.8
13.2
0.2
0.0
0.0
100.0
Average Federal Tax Change
Dollars
-139
-257
-307
-268
-255
-298
-444
-296
-17
-14
-3
-267
Percent
-49.9
-30.0
-11.0
-5.0
-3.2
-2.4
-2.3
-0.8
0.0
0.0
0.0
-1.6
Share of Federal Taxes
Change (%
Points)
-0.1
-0.3
-0.2
-0.1
-0.1
-0.1
-0.1
0.2
0.3
0.1
0.3
0.0
Under the
Proposal
0.1
0.6
2.0
3.3
3.7
9.7
10.9
26.1
17.2
7.6
18.6
100.0
5
Average Federal Tax Rate
Change (%
Points)
-2.3
-1.7
-1.2
-0.8
-0.6
-0.5
-0.5
-0.2
0.0
0.0
0.0
-0.4
Under the
Proposal
2.3
3.9
9.7
14.2
16.5
18.8
20.9
24.4
27.3
28.4
33.7
22.7
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2011
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
Tax Units 3
Number
Percent of
(thousands)
Total
19,473
25,675
20,342
16,056
12,370
20,373
14,743
18,513
5,241
954
446
155,368
12.5
16.5
13.1
10.3
8.0
13.1
9.5
11.9
3.4
0.6
0.3
100.0
Average
Income
(Dollars)
5,992
15,574
25,575
35,907
46,113
64,251
89,246
145,841
304,480
711,387
3,116,878
71,667
Average
Federal Tax
Burden
279
857
2,789
5,380
7,868
12,350
19,114
35,843
83,079
202,319
1,051,048
16,515
Average AfterTax Income 4
(Dollars)
5,712
14,717
22,785
30,528
38,245
51,901
70,132
109,997
221,401
509,069
2,065,830
55,152
Average
Federal Tax
5
Rate
4.7
5.5
10.9
15.0
17.1
19.2
21.4
24.6
27.3
28.4
33.7
23.0
Share of PrePercent of
Total
Share of PostPercent of
Total
Share of
Percent of
Total
1.1
3.6
4.7
5.2
5.1
11.8
11.8
24.3
14.3
6.1
12.5
100.0
1.3
4.4
5.4
5.7
5.5
12.3
12.1
23.8
13.5
5.7
10.8
100.0
0.2
0.9
2.2
3.4
3.8
9.8
11.0
25.9
17.0
7.5
18.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 17.1
Proposal: 14.5
(1) Calendar year. Baseline is current law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit amount to $1,000, and allowing refundability of 15% of
earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.
18-May-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 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
4.7
4.2
3.0
2.7
1.9
1.5
1.5
1.0
0.0
0.0
0.1
3.1
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
0.7
0.3
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
Share of Total
Federal Tax
Change
26.5
36.8
16.0
8.3
4.4
4.6
2.3
0.9
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
-38
-46
-29
-21
-16
-12
-13
-7
0
0
-1
-29
Percent
-7.6
-3.2
-0.8
-0.3
-0.2
-0.1
-0.1
0.0
0.0
0.0
0.0
-0.3
Share of Federal Taxes
Change (%
Points)
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
Under the
Proposal
1.0
3.6
6.5
8.2
8.4
17.2
12.4
16.5
10.3
4.6
11.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.6
-0.3
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
Under the
Proposal
7.8
9.2
14.7
18.6
20.2
22.9
25.3
26.3
29.5
31.6
37.7
22.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 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
Percent of
(thousands)
Total
13,625
15,494
10,657
7,568
5,576
7,296
3,425
2,751
701
127
59
67,885
20.1
22.8
15.7
11.2
8.2
10.8
5.1
4.1
1.0
0.2
0.1
100.0
Average
Income
(Dollars)
5,910
15,417
25,474
35,938
46,070
63,429
88,382
140,736
306,169
709,117
3,064,204
40,448
Average
Federal Tax
Burden
500
1,459
3,781
6,718
9,320
14,555
22,392
37,052
90,397
223,914
1,155,378
9,109
Average AfterTax Income 4
(Dollars)
5,410
13,958
21,693
29,219
36,750
48,874
65,991
103,684
215,772
485,203
1,908,826
31,339
Average
Federal Tax
Rate 5
8.5
9.5
14.8
18.7
20.2
23.0
25.3
26.3
29.5
31.6
37.7
22.5
Share of PrePercent of
Total
Share of PostPercent of
Total
Share of
Percent of
Total
2.9
8.7
9.9
9.9
9.4
16.9
11.0
14.1
7.8
3.3
6.6
100.0
3.5
10.2
10.9
10.4
9.6
16.8
10.6
13.4
7.1
2.9
5.3
100.0
1.1
3.7
6.5
8.2
8.4
17.2
12.4
16.5
10.3
4.6
11.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit amount to $1,000, and allowing refundability of 15% of
earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.
18-May-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 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
13.9
21.2
26.7
31.7
37.4
38.8
42.6
26.8
1.9
1.4
0.2
29.1
With Tax
Increase
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
2.6
2.1
1.8
1.2
1.0
0.8
0.8
0.3
0.0
0.0
0.0
0.4
Share of Total
Federal Tax
Change
1.4
6.5
9.6
7.7
7.2
17.9
25.1
23.5
0.4
0.1
0.0
100.0
Average Federal Tax Change
Dollars
-127
-328
-438
-391
-394
-420
-578
-356
-20
-14
-4
-372
Percent
-58.0
-57.1
-24.3
-10.6
-6.7
-4.0
-3.2
-1.0
0.0
0.0
0.0
-1.3
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.1
-0.2
-0.2
0.1
0.3
0.1
0.3
0.0
Under the
Proposal
0.0
0.1
0.4
0.8
1.3
5.6
9.8
30.5
20.7
9.1
21.5
100.0
Average Federal Tax Rate 5
Change (%
Points)
-2.5
-2.1
-1.7
-1.1
-0.9
-0.6
-0.6
-0.2
0.0
0.0
0.0
-0.3
Under the
Proposal
1.8
1.5
5.3
9.1
12.0
15.5
19.2
24.0
27.0
28.0
33.1
23.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 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
Percent of
(thousands)
Total
2,449
4,462
4,928
4,438
4,139
9,641
9,818
14,926
4,378
795
368
60,792
4.0
7.3
8.1
7.3
6.8
15.9
16.2
24.6
7.2
1.3
0.6
100.0
Average
Income
(Dollars)
5,126
15,983
25,734
36,076
46,216
65,170
89,778
147,281
304,202
712,174
3,053,140
119,608
Average
Federal Tax
Burden
219
574
1,808
3,680
5,922
10,531
17,838
35,719
82,117
199,119
1,009,700
28,874
Average AfterTax Income 4
(Dollars)
4,906
15,409
23,927
32,396
40,293
54,639
71,940
111,562
222,085
513,056
2,043,440
90,734
Average
Federal Tax
Rate 5
4.3
3.6
7.0
10.2
12.8
16.2
19.9
24.3
27.0
28.0
33.1
24.1
Share of PrePercent of
Total
Share of PostPercent of
Total
Share of
Percent of
Total
0.2
1.0
1.7
2.2
2.6
8.6
12.1
30.2
18.3
7.8
15.5
100.0
0.2
1.3
2.1
2.6
3.0
9.6
12.8
30.2
17.6
7.4
13.7
100.0
0.0
0.2
0.5
0.9
1.4
5.8
10.0
30.4
20.5
9.0
21.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit amount to $1,000, and allowing refundability of 15% of
earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.
18-May-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 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
68.9
62.7
69.1
70.8
67.5
58.8
53.6
19.3
1.5
9.9
0.3
63.7
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
7.7
5.0
3.5
2.1
1.5
1.2
0.9
0.2
0.0
0.0
0.0
2.1
Share of Total
Federal Tax
Change
11.4
26.7
22.7
14.2
8.1
11.1
4.8
0.9
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
-585
-812
-846
-637
-577
-620
-618
-209
-27
-99
-2
-681
Percent
91.8
110.1
-63.4
-14.3
-7.6
-5.0
-3.2
-0.6
0.0
-0.1
0.0
-11.7
Share of Federal Taxes
Change (%
Points)
-1.7
-3.9
-2.5
-0.4
0.6
1.9
1.7
2.1
0.9
0.4
0.9
0.0
Under the
Proposal
-3.1
-6.7
1.7
11.2
13.0
27.7
19.2
18.9
7.3
3.1
7.6
100.0
Average Federal Tax Rate 5
Change (%
Points)
-8.4
-5.2
-3.3
-1.8
-1.3
-1.0
-0.7
-0.2
0.0
0.0
0.0
-1.8
Under the
Proposal
-17.5
-9.9
1.9
10.7
15.1
18.6
21.6
24.4
25.1
26.5
34.0
13.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 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
Percent of
(thousands)
Total
3,209
5,408
4,419
3,670
2,322
2,941
1,267
710
119
21
9
24,178
13.3
22.4
18.3
15.2
9.6
12.2
5.2
2.9
0.5
0.1
0.0
100.0
Average
Income
(Dollars)
6,999
15,686
25,635
35,569
46,068
63,194
87,790
135,920
304,528
686,300
3,051,458
38,406
Average
Federal Tax
Burden
-637
-738
1,334
4,454
7,550
12,352
19,545
33,381
76,500
181,598
1,037,468
5,838
Average AfterTax Income 4
(Dollars)
7,635
16,424
24,301
31,115
38,518
50,842
68,245
102,539
228,028
504,702
2,013,989
32,568
Average
Federal Tax
Rate 5
-9.1
-4.7
5.2
12.5
16.4
19.6
22.3
24.6
25.1
26.5
34.0
15.2
Share of PrePercent of
Total
Share of PostPercent of
Total
Share of
Percent of
Total
2.4
9.1
12.2
14.1
11.5
20.0
12.0
10.4
3.9
1.6
3.0
100.0
3.1
11.3
13.6
14.5
11.4
19.0
11.0
9.3
3.4
1.4
2.3
100.0
-1.5
-2.8
4.2
11.6
12.4
25.7
17.5
16.8
6.4
2.8
6.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit amount to $1,000, and allowing refundability of 15% of
earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.
18-May-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Detail Table - Tax Units with Children
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 3
With Tax Cut
69.7
72.5
80.5
84.1
82.2
81.1
80.1
48.7
3.6
3.3
0.5
68.8
With Tax
Increase
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
7.9
5.7
4.4
2.7
2.0
1.6
1.5
0.6
0.0
0.0
0.0
1.2
Share of Total
Federal Tax
Change
5.7
15.4
15.0
10.4
7.7
14.9
16.4
13.8
0.2
0.0
0.0
100.0
Average Federal Tax Change
Dollars
Percent
-591
-979
-1,081
-852
-793
-863
-1,059
-641
-37
-32
-8
-809
69.5
78.6
-123.9
-20.6
-11.1
-7.2
-5.7
-1.8
0.0
0.0
0.0
-3.9
Share of Federal Taxes
Change (%
Points)
-0.2
-0.7
-0.6
-0.3
-0.2
-0.3
-0.2
0.7
0.8
0.3
0.7
0.0
Under the
Proposal
-0.6
-1.4
-0.1
1.6
2.5
7.7
11.0
30.9
20.7
8.7
19.0
100.0
5
Average Federal Tax Rate
Change (%
Points)
-8.9
-6.2
-4.2
-2.4
-1.7
-1.3
-1.2
-0.4
0.0
0.0
0.0
-0.9
Under the
Proposal
-21.7
-14.1
-0.8
9.2
13.8
17.1
19.7
24.3
27.6
29.5
34.5
22.3
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2011
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
Tax Units 3
Number
Percent of
(thousands)
Total
3,805
6,209
5,470
4,817
3,830
6,853
6,138
8,529
2,436
405
175
48,902
7.8
12.7
11.2
9.9
7.8
14.0
12.6
17.4
5.0
0.8
0.4
100.0
Average
Income
(Dollars)
6,625
15,826
25,668
35,746
46,097
64,651
89,544
147,403
303,499
714,589
3,095,878
90,398
Average
Federal Tax
Burden
-850
-1,246
873
4,133
7,174
11,940
18,678
36,390
83,710
210,971
1,069,010
20,984
Average AfterTax Income 4
(Dollars)
7,475
17,072
24,795
31,613
38,922
52,712
70,866
111,014
219,789
503,618
2,026,868
69,414
Average
Federal Tax
5
Rate
Share of PrePercent of
Total
Share of PostPercent of
Total
Share of
Percent of
Total
-12.8
-7.9
3.4
11.6
15.6
18.5
20.9
24.7
27.6
29.5
34.5
23.2
0.6
2.2
3.2
3.9
4.0
10.0
12.4
28.4
16.7
6.6
12.3
100.0
0.8
3.1
4.0
4.5
4.4
10.6
12.8
27.9
15.8
6.0
10.5
100.0
-0.3
-0.8
0.5
1.9
2.7
8.0
11.2
30.2
19.9
8.3
18.3
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 law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit amount to $1,000, and allowing refundability of 15% of
earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.
18-May-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0110
Extend EGTRRA Child Tax Credit Changes and Reduce Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Detail Table - Elderly Tax Units
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 3
With Tax Cut
1.6
0.7
1.1
0.9
2.1
2.5
2.4
1.2
0.2
0.1
0.1
1.4
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
4
Income
0.2
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
9.6
10.8
14.0
7.4
11.6
23.6
13.2
9.3
0.4
0.1
0.0
100.0
Average Federal Tax Change
Dollars
-14
-6
-11
-9
-21
-21
-21
-12
-1
-1
-1
-13
Percent
-7.5
-1.5
-0.9
-0.4
-0.6
-0.3
-0.2
0.0
0.0
0.0
0.0
-0.1
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
0.1
0.7
1.4
1.7
1.7
7.4
7.6
21.6
20.1
10.7
27.1
100.0
5
Average Federal Tax Rate
Change (%
Points)
-0.2
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
2.7
2.6
4.9
6.8
7.2
11.6
15.3
20.9
26.5
28.0
34.4
19.5
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2011
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
Tax Units 3
Number
Percent of
(thousands)
Total
2,522
6,642
4,651
2,939
2,058
4,144
2,348
2,957
1,037
229
108
29,671
8.5
22.4
15.7
9.9
6.9
14.0
7.9
10.0
3.5
0.8
0.4
100.0
Average
Income
(Dollars)
6,528
15,553
25,360
35,780
46,183
63,809
88,288
145,786
304,965
697,487
3,055,011
72,264
Average
Federal Tax
Burden
189
417
1,246
2,435
3,362
7,431
13,538
30,503
80,733
194,957
1,049,495
14,075
Average AfterTax Income 4
(Dollars)
6,339
15,136
24,115
33,345
42,821
56,378
74,750
115,283
224,231
502,530
2,005,516
58,188
Average
Federal Tax
5
Rate
2.9
2.7
4.9
6.8
7.3
11.7
15.3
20.9
26.5
28.0
34.4
19.5
Share of PrePercent of
Total
Share of PostPercent of
Total
Share of
Percent of
Total
0.8
4.8
5.5
4.9
4.4
12.3
9.7
20.1
14.8
7.5
15.3
100.0
0.9
5.8
6.5
5.7
5.1
13.5
10.2
19.7
13.5
6.7
12.5
100.0
0.1
0.7
1.4
1.7
1.7
7.4
7.6
21.6
20.1
10.7
27.1
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 law, proposal is to extend the CTC provisions in EGTRRA including allowance of credit regardless of AMT, increasing credit amount to $1,000, and allowing refundability of 15% of
earning in excess of threshold. Proposal alse reduces the refundablily threshold to $0.
(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.