9-Aug-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 T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
5.8
24.3
28.5
35.2
22.0
21.8
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.0
0.6
0.4
0.1
0.3
3.3
29.9
27.4
26.3
12.7
100.0
-25
-249
-250
-287
-159
-185
-0.2
-0.9
-0.5
-0.3
-0.1
-0.2
4.6
10.3
16.6
19.6
26.6
21.8
35.9
11.6
4.5
2.9
1.3
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.0
0.0
0.0
11.4
1.0
0.2
0.0
0.0
-283
-51
-15
-9
-4
-0.2
0.0
0.0
0.0
0.0
22.1
23.4
25.8
32.3
35.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 4.0
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal
would extend the EGTRRA increases in the child tax credit ($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for
inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of $3,000 per dependent up to $6,000
total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income
phaseout range and repeal of limit on number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2009 dollars): 20% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail Table
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
5.8
24.3
28.5
35.2
22.0
21.8
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.0
0.6
0.4
0.1
0.3
3.3
29.9
27.4
26.3
12.7
100.0
-25
-249
-250
-287
-159
-185
-4.5
-7.7
-2.8
-1.6
-0.2
-1.1
0.0
-0.3
-0.2
-0.1
0.6
0.0
0.8
4.0
10.6
17.8
66.7
100.0
-0.2
-0.9
-0.5
-0.3
-0.1
-0.2
4.6
10.3
16.6
19.6
26.6
21.8
35.9
11.6
4.5
2.9
1.3
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.0
0.0
0.0
11.4
1.0
0.2
0.0
0.0
-283
-51
-15
-9
-4
-0.9
-0.1
0.0
0.0
0.0
0.0
0.1
0.2
0.3
0.2
13.8
10.1
15.9
26.9
13.7
-0.2
0.0
0.0
0.0
0.0
22.1
23.4
25.8
32.3
35.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
562
3,230
8,901
17,704
74,802
16,755
11,038
25,622
43,323
71,273
205,427
59,414
4.9
11.2
17.0
19.9
26.7
22.0
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.8
20.3
51.2
100.0
0.8
4.3
10.8
17.9
66.1
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
30,883
46,022
89,264
589,580
2,972,379
107,502
150,526
256,311
1,235,608
5,394,895
22.3
23.4
25.8
32.3
35.5
13.5
9.4
13.4
18.1
8.4
13.5
9.2
12.8
15.7
6.9
13.7
10.0
15.8
26.6
13.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 4.0
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2009 dollars): 20% $19,356, 40%
$37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
12.2
28.9
28.2
29.5
11.5
21.8
0.0
0.0
0.0
0.0
0.0
0.0
0.9
1.3
0.7
0.4
0.0
0.3
10.1
34.8
27.2
23.2
4.5
100.0
-92
-313
-253
-225
-43
-185
-44.6
-12.3
-3.5
-1.5
-0.1
-1.1
-0.1
-0.4
-0.2
-0.1
0.7
0.0
0.1
2.8
8.4
17.0
71.6
100.0
-0.8
-1.2
-0.6
-0.3
0.0
-0.2
1.0
8.5
15.2
19.0
26.5
21.8
18.5
6.5
2.5
1.8
0.8
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
3.9
0.4
0.2
0.0
0.0
-76
-14
-8
-4
-2
-0.3
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.3
0.2
15.0
11.4
17.2
28.0
14.2
-0.1
0.0
0.0
0.0
0.0
22.2
23.5
25.6
32.1
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
31,706
32,349
31,237
29,980
29,936
157,348
20.2
20.6
19.9
19.1
19.0
100.0
10,935
26,208
46,322
77,565
235,547
76,169
206
2,539
7,274
14,984
62,384
16,755
10,729
23,669
39,048
62,581
173,164
59,414
1.9
9.7
15.7
19.3
26.5
22.0
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.1
20.1
55.5
100.0
0.3
3.1
8.6
17.0
70.8
100.0
15,019
7,540
5,940
1,436
142
9.6
4.8
3.8
0.9
0.1
117,658
167,170
294,212
1,584,726
7,360,192
26,177
39,367
75,404
508,000
2,593,933
91,481
127,803
218,808
1,076,726
4,766,259
22.3
23.6
25.6
32.1
35.2
14.7
10.5
14.6
19.0
8.7
14.7
10.3
13.9
16.5
7.3
14.9
11.3
17.0
27.7
14.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 4.0
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single Tax Units
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
1.7
3.2
1.7
6.2
3.8
3.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
16.5
46.6
18.0
14.4
4.4
100.0
-8
-26
-11
-11
-4
-12
-1.4
-1.2
-0.2
-0.1
0.0
-0.1
0.0
-0.1
0.0
0.0
0.1
0.0
1.5
5.0
12.4
20.5
60.5
100.0
-0.1
-0.1
0.0
0.0
0.0
0.0
7.1
10.7
17.1
21.1
27.5
21.9
6.9
0.6
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.2
0.2
0.0
0.0
0.0
-7
-1
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.4
10.8
14.5
19.8
9.5
0.0
0.0
0.0
0.0
0.0
24.0
25.3
26.3
34.2
38.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
16,972
15,474
14,005
11,543
9,596
68,932
24.6
22.5
20.3
16.8
13.9
100.0
8,380
19,970
34,261
55,833
151,979
43,878
603
2,168
5,882
11,793
41,826
9,639
7,777
17,802
28,379
44,040
110,153
34,238
7.2
10.9
17.2
21.1
27.5
22.0
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.7
16.8
21.5
44.8
100.0
1.5
5.1
12.4
20.5
60.4
100.0
5,066
2,373
1,795
361
32
7.4
3.4
2.6
0.5
0.1
84,037
119,032
204,548
1,060,631
5,243,107
20,196
30,126
53,746
362,997
1,995,548
63,841
88,906
150,802
697,635
3,247,558
24.0
25.3
26.3
34.2
38.1
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.5
10.7
4.4
15.4
10.8
14.5
19.7
9.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
20.8
37.5
44.7
44.0
15.7
31.7
0.0
0.0
0.0
0.0
0.0
0.0
1.5
1.6
0.9
0.5
0.0
0.3
7.8
24.0
29.2
31.8
6.7
100.0
-210
-479
-455
-377
-65
-291
-64.1
-15.4
-5.3
-2.2
-0.1
-1.0
-0.1
-0.2
-0.2
-0.2
0.7
0.0
0.0
1.4
5.3
14.7
78.5
100.0
-1.5
-1.4
-0.8
-0.4
0.0
-0.2
0.8
7.9
13.6
17.9
26.2
22.6
26.0
9.5
3.4
2.3
1.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
5.9
0.5
0.2
0.0
0.0
-120
-20
-10
-6
-3
-0.4
-0.1
0.0
0.0
0.0
0.1
0.1
0.2
0.3
0.2
15.1
12.2
19.2
32.0
16.0
-0.1
0.0
0.0
0.0
0.0
21.5
23.0
25.5
31.5
34.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
6,622
8,956
11,470
15,032
18,609
61,357
10.8
14.6
18.7
24.5
30.3
100.0
14,526
33,405
59,671
95,023
281,842
126,020
328
3,110
8,557
17,408
73,757
28,765
14,198
30,295
51,114
77,615
208,086
97,255
2.3
9.3
14.3
18.3
26.2
22.8
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.8
19.6
64.9
100.0
0.1
1.6
5.6
14.8
77.8
100.0
8,860
4,843
3,890
1,015
102
14.4
7.9
6.3
1.7
0.2
138,312
192,091
337,723
1,748,464
7,890,377
29,809
44,180
86,076
551,177
2,736,571
108,503
147,911
251,646
1,197,287
5,153,806
21.6
23.0
25.5
31.5
34.7
15.9
12.0
17.0
23.0
10.5
16.1
12.0
16.4
20.4
8.8
15.0
12.1
19.0
31.7
15.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Head of Household Tax Units
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
27.8
71.8
64.4
51.3
12.9
50.7
0.0
0.0
0.0
0.0
0.0
0.0
1.2
2.5
1.1
0.5
0.0
1.2
13.7
53.0
23.9
8.8
0.6
100.0
-176
-714
-473
-319
-47
-411
22.3
-28.0
-5.8
-2.1
-0.1
-6.6
-1.3
-2.9
0.2
1.4
2.5
0.0
-5.3
9.6
27.3
29.4
39.0
100.0
-1.3
-2.3
-0.9
-0.4
0.0
-1.0
-7.2
6.0
15.3
19.7
25.2
14.0
15.8
7.1
8.9
4.6
3.9
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.5
0.0
0.1
0.0
0.0
-61
-13
-37
-8
-7
-0.2
0.0
-0.1
0.0
0.0
0.9
0.4
0.5
0.7
0.3
14.5
5.9
8.1
10.5
5.0
-0.1
0.0
0.0
0.0
0.0
22.9
23.5
24.0
32.1
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
7,840
7,497
5,095
2,777
1,242
24,547
31.9
30.5
20.8
11.3
5.1
100.0
13,490
30,617
50,275
76,881
178,521
41,760
-789
2,545
8,160
15,476
45,043
6,253
14,279
28,072
42,115
61,405
133,478
35,507
-5.9
8.3
16.2
20.1
25.2
15.0
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.2
24.6
19.6
19.0
100.0
-4.0
12.4
27.1
28.0
36.4
100.0
805
232
173
33
3
3.3
0.9
0.7
0.1
0.0
112,763
154,893
278,418
1,423,600
6,950,503
25,909
36,474
66,930
456,702
2,445,624
86,854
118,419
211,488
966,898
4,504,880
23.0
23.6
24.0
32.1
35.2
8.9
3.5
4.7
4.6
2.0
8.0
3.2
4.2
3.7
1.5
13.6
5.5
7.5
9.8
4.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0195
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Tax Units with Children
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
35.4
84.3
83.1
80.3
28.3
63.3
0.0
0.0
0.0
0.0
0.0
0.0
1.8
2.9
1.5
0.8
0.1
0.8
10.0
34.3
27.6
23.7
4.1
100.0
-276
-923
-751
-673
-137
-567
26.9
-30.5
-7.2
-3.3
-0.2
-2.7
-0.3
-0.9
-0.5
-0.1
1.8
0.0
-1.3
2.2
9.9
19.7
69.5
100.0
-1.9
-2.7
-1.2
-0.7
0.0
-0.6
-8.9
6.1
15.4
19.4
27.3
21.3
43.9
13.3
8.7
5.6
3.2
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.0
0.0
3.6
0.3
0.2
0.0
0.0
-230
-36
-29
-16
-9
-0.6
-0.1
0.0
0.0
0.0
0.3
0.3
0.5
0.7
0.3
15.8
10.7
16.9
26.2
12.7
-0.2
0.0
0.0
0.0
0.0
22.7
24.0
26.9
33.5
35.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
10,133
10,359
10,251
9,800
8,315
49,155
20.6
21.1
20.9
19.9
16.9
100.0
14,723
34,672
62,298
103,142
306,063
95,419
-1,027
3,027
10,370
20,723
83,644
20,896
15,750
31,645
51,928
82,418
222,419
74,523
-7.0
8.7
16.7
20.1
27.3
21.9
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.0
14.5
22.1
50.5
100.0
-1.0
3.1
10.4
19.8
67.7
100.0
4,398
1,976
1,567
374
36
9.0
4.0
3.2
0.8
0.1
157,496
224,546
400,356
2,088,455
9,839,694
36,016
53,993
107,638
699,762
3,513,573
121,480
170,552
292,717
1,388,693
6,326,121
22.9
24.1
26.9
33.5
35.7
14.8
9.5
13.4
16.7
7.6
14.6
9.2
12.5
14.2
6.2
15.4
10.4
16.4
25.5
12.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0192
Extend Increases in Child Tax Credit, Child and Dependent Care Credit, and Student Loan Interest Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Elderly Tax Units
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.9
0.6
2.5
1.7
0.8
1.3
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
11.7
19.2
43.8
19.8
5.3
100.0
-6
-6
-18
-9
-2
-8
-2.1
-0.7
-0.7
-0.1
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.6
3.4
10.2
84.4
100.0
-0.1
0.0
0.0
0.0
0.0
0.0
2.5
3.9
6.2
11.6
25.7
19.0
1.4
0.7
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.0
0.9
0.3
0.1
0.0
-4
-2
-1
-1
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
9.8
9.4
20.6
44.5
22.5
0.0
0.0
0.0
0.0
0.0
16.9
19.9
24.3
32.3
35.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
5,016
8,213
5,981
5,495
5,617
30,543
16.4
26.9
19.6
18.0
18.4
100.0
10,899
22,528
41,094
70,238
257,048
75,737
277
877
2,552
8,142
66,094
14,412
10,622
21,651
38,542
62,096
190,954
61,325
2.5
3.9
6.2
11.6
25.7
19.0
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.5
12.3
18.2
57.3
100.0
0.3
1.6
3.5
10.2
84.3
100.0
2,427
1,362
1,394
434
42
8.0
4.5
4.6
1.4
0.1
105,444
153,103
267,882
1,396,961
6,520,091
17,817
30,409
65,112
451,459
2,333,598
87,627
122,693
202,769
945,502
4,186,493
16.9
19.9
24.3
32.3
35.8
11.1
9.0
16.1
26.2
12.0
11.4
8.9
15.1
21.9
9.5
9.8
9.4
20.6
44.5
22.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 plus an AMT patch; extension of the 10, 25, and 28 percent tax rates; and extension of marriage penalty relief. Proposal would extend the EGTRRA increases in the child tax credit
($1,000 credit amount, 15-percent refundability based on earnings in excess of $10,000 indexed for inflation, and allowance of credit regardless of tentative AMT); the child and dependent care tax credit (allowable expenses of
$3,000 per dependent up to $6,000 total, increase in top credit rate to 35 percent, increase in credit phasedown threshold to $15,000); and the student loan interest deduction (increase in income phaseout range and repeal of limit on
number of months during which interest paid is deductible).
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.