15-Sep-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 T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Summary Table
Percent of Tax Units4
Cash Income Percentile
2,3
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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.5
0.1
0.0
0.0
0.0
0.0
11.7
1.7
0.0
0.0
0.0
0.0
-1.4
-0.7
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
2,916
432
0.0
0.0
0.0
0.0
1.0
0.6
4.6
10.3
16.4
19.3
26.1
21.4
0.1
0.4
1.6
0.1
0.0
0.1
0.5
35.7
86.1
97.4
0.0
0.0
-0.3
-4.1
-5.4
0.0
0.0
6.0
94.0
54.7
0
2
874
53,674
310,140
0.0
0.0
0.3
2.9
3.7
21.8
23.0
25.1
31.6
34.9
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).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 4.3
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a
20 percent rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held
for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions (Pease) and the personal exemption
phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a
top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction
and two personal exemptions for married couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint
of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 19466, 40% 37548, 60% 65519, 80% 111644, 90% 162450, 95% 229885, 99% 608848, 99.9% 2752633.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail Table
Percent of Tax Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.5
0.1
0.0
0.0
0.0
0.0
11.7
1.7
0.0
0.0
0.0
0.0
-1.4
-0.7
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
2,916
432
0.0
0.0
0.0
0.0
4.2
2.7
0.0
-0.1
-0.3
-0.5
0.9
0.0
0.8
4.0
10.7
17.9
66.5
100.0
0.0
0.0
0.0
0.0
1.0
0.6
4.6
10.3
16.4
19.3
26.1
21.4
0.1
0.4
1.6
0.1
0.0
0.1
0.5
35.7
86.1
97.4
0.0
0.0
-0.3
-4.1
-5.4
0.0
0.0
6.0
94.0
54.7
0
2
874
53,674
310,140
0.0
0.0
1.0
10.3
11.9
-0.4
-0.3
-0.3
1.8
1.1
13.8
10.1
15.8
26.8
13.7
0.0
0.0
0.3
2.9
3.7
21.8
23.0
25.1
31.6
34.9
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, 2012 1
Tax Units4
Cash Income Percentile2,3
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
533
2,962
8,560
17,195
70,153
15,843
11,067
25,890
43,664
71,783
210,076
60,325
4.6
10.3
16.4
19.3
25.0
20.8
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.5
14.7
20.2
51.6
100.0
0.8
4.2
10.9
18.4
65.6
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
30,137
45,107
85,929
523,337
2,607,385
108,248
151,441
259,645
1,301,851
5,759,889
21.8
23.0
24.9
28.7
31.2
13.5
9.4
13.4
18.1
8.4
13.4
9.2
12.7
16.3
7.3
14.2
10.4
16.0
25.0
12.5
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: 5.0
Proposal: 4.3
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 19466, 40%
37548, 60% 65519, 80% 111644, 90% 162450, 95% 229885, 99% 608848, 99.9% 2752633.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table
Percent of Tax Units
Cash Income Percentile
4
2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.0
0.0
9.1
1.7
0.0
0.0
0.0
0.0
-1.3
-0.7
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
2,269
432
0.0
0.0
0.0
0.0
3.9
2.7
0.0
-0.1
-0.2
-0.5
0.8
0.0
0.1
2.8
8.5
17.1
71.3
100.0
0.0
0.0
0.0
0.0
1.0
0.6
1.0
8.5
15.1
18.9
25.9
21.4
0.0
0.1
1.6
0.2
0.0
0.0
0.2
25.7
82.2
95.2
0.0
0.0
-0.3
-3.9
-5.3
0.0
0.0
5.7
94.3
56.0
0
0
657
44,582
267,156
0.0
0.0
0.9
9.9
11.7
-0.4
-0.3
-0.3
1.8
1.1
15.1
11.4
17.0
27.8
14.1
0.0
0.0
0.2
2.8
3.6
21.9
23.2
24.9
31.3
34.6
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 Adjusted for Family Size, 2012
4
Tax Units
Cash Income Percentile2,3
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 After5
Tax Income
(Dollars)
Average
Federal Tax
6
Rate
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
112
2,216
6,970
14,640
58,708
15,843
10,823
23,991
39,352
62,925
176,839
60,325
1.0
8.5
15.1
18.9
24.9
20.8
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
19.9
55.8
100.0
0.1
2.9
8.7
17.6
70.5
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
25,783
38,695
72,481
451,133
2,276,318
91,875
128,475
221,730
1,133,593
5,083,874
21.9
23.2
24.6
28.5
30.9
14.7
10.5
14.6
19.0
8.7
14.5
10.2
13.9
17.2
7.6
15.5
11.7
17.3
26.0
13.0
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: 5.0
Proposal: 4.3
(1) Calendar year. Baseline is current policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 13311, 40% 24838, 60% 41873, 80% 68035, 90% 98420, 95% 140591, 99% 367918, 99.9%
1687910.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single Tax Units
Percent of Tax Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.0
0.0
4.9
0.7
0.0
0.0
0.0
0.0
-0.8
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
941
131
0.0
0.0
0.0
0.0
2.4
1.4
0.0
-0.1
-0.2
-0.3
0.6
0.0
1.6
5.1
12.6
20.9
59.6
100.0
0.0
0.0
0.0
0.0
0.6
0.3
7.1
10.7
16.9
20.8
26.2
21.2
0.0
0.0
2.0
0.4
0.0
0.0
0.0
11.0
76.9
95.5
0.0
0.0
-0.1
-3.3
-5.2
0.0
0.0
2.3
97.7
62.8
0
0
117
24,431
179,016
0.0
0.0
0.2
7.6
10.1
-0.2
-0.2
-0.2
1.1
0.8
15.5
10.7
14.0
19.5
9.6
0.0
0.0
0.1
2.3
3.4
23.3
24.3
24.4
32.6
37.2
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 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
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
592
2,132
5,784
11,609
38,919
9,173
7,788
17,838
28,478
44,224
113,060
34,705
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
19,610
28,948
49,724
321,696
1,772,780
64,427
90,083
154,824
738,936
3,470,327
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.1
10.7
16.9
20.8
25.6
20.9
4.7
10.2
15.9
21.3
48.2
100.0
5.5
11.5
16.7
21.3
45.4
100.0
1.6
5.2
12.8
21.2
59.1
100.0
23.3
24.3
24.3
30.3
33.8
14.1
9.3
12.1
12.7
5.5
13.6
8.9
11.6
11.2
4.6
15.7
10.9
14.1
18.4
8.9
Average
Federal Tax
Rate6
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 policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 13311, 40% 24838, 60% 41873, 80% 68035, 90% 98420, 95% 140591, 99% 367918, 99.9%
1687910.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
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 Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.3
0.1
0.0
0.0
0.0
0.0
11.4
3.5
0.0
0.0
0.0
0.0
-1.4
-0.9
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
2,960
898
0.0
0.0
0.0
0.0
4.3
3.3
0.0
0.0
-0.2
-0.5
0.7
0.0
0.0
1.4
5.4
14.8
78.3
100.0
0.0
0.0
0.0
0.0
1.1
0.7
0.8
7.8
13.5
17.8
25.8
22.3
0.0
0.0
1.5
0.2
0.0
0.0
0.3
32.2
83.7
94.9
0.0
0.0
-0.4
-4.0
-5.3
0.0
0.0
6.4
93.6
53.8
0
1
907
50,779
289,701
0.0
0.0
1.1
10.4
12.1
-0.5
-0.4
-0.4
2.0
1.3
15.2
12.3
19.1
31.8
15.9
0.0
0.0
0.3
2.9
3.7
21.3
22.8
25.0
30.9
34.0
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 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
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
115
2,616
8,074
16,935
69,621
27,207
14,411
30,789
51,597
78,088
212,221
98,813
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
29,497
43,749
83,600
489,638
2,393,662
108,815
148,341
254,123
1,258,827
5,496,716
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
7.8
13.5
17.8
24.7
21.6
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.8
19.4
65.1
100.0
0.1
1.4
5.6
15.3
77.6
100.0
21.3
22.8
24.8
28.0
30.3
15.9
12.0
17.0
23.0
10.5
15.9
11.9
16.3
21.1
9.3
15.7
12.7
19.5
29.8
14.7
Average
Federal Tax
Rate6
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 policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 13311, 40% 24838, 60% 41873, 80% 68035, 90% 98420, 95% 140591, 99% 367918, 99.9%
1687910.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
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 Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.9
0.3
0.0
0.0
0.0
0.0
-0.9
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,149
58
0.0
0.0
0.0
0.0
2.7
1.0
0.1
-0.1
-0.3
-0.3
0.6
0.0
-5.3
9.6
27.5
29.4
38.7
100.0
0.0
0.0
0.0
0.0
0.6
0.1
-7.2
6.0
15.3
19.7
24.9
13.9
0.0
0.0
0.3
0.0
0.0
0.0
0.1
18.5
86.9
98.3
0.0
0.0
-0.2
-4.0
-5.5
0.0
0.0
5.8
94.2
53.7
0
0
482
40,645
262,971
0.0
0.0
0.7
9.9
12.2
-0.2
-0.1
0.0
0.9
0.5
14.5
5.8
7.9
10.4
5.0
0.0
0.0
0.2
2.9
3.8
22.8
23.2
23.6
31.6
34.8
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 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
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
-966
1,830
7,677
15,107
43,278
5,746
14,455
28,787
42,598
61,774
135,243
36,014
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
25,698
35,894
65,092
409,158
2,157,222
87,064
118,999
213,326
1,014,441
4,793,281
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-7.2
6.0
15.3
19.7
24.2
13.8
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.4
24.6
19.4
19.0
100.0
-5.4
9.7
27.7
29.7
38.1
100.0
22.8
23.2
23.4
28.7
31.0
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.8
1.6
14.7
5.9
8.0
9.6
4.5
Average
Federal Tax
Rate6
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 policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 13311, 40% 24838, 60% 41873, 80% 68035, 90% 98420, 95% 140591, 99% 367918, 99.9%
1687910.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
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
Cash Income Percentile
4
2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
13.9
2.3
0.0
0.0
0.0
0.0
-1.6
-0.8
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
3,545
600
0.0
0.0
0.0
0.0
4.5
3.1
0.0
-0.1
-0.3
-0.6
0.9
0.0
-1.3
2.2
9.9
19.8
69.3
100.0
0.0
0.0
0.0
0.0
1.2
0.6
-8.9
6.1
15.4
19.4
27.0
21.1
0.0
0.1
0.6
0.0
0.0
0.0
0.8
50.4
92.6
99.1
0.0
0.0
-0.6
-4.9
-5.8
0.0
0.0
9.4
90.5
47.6
0
3
1,775
71,366
389,236
0.0
0.0
1.7
11.5
12.6
-0.5
-0.3
-0.2
2.0
1.1
15.8
10.7
16.8
26.1
12.6
0.0
0.0
0.4
3.4
4.0
22.6
23.9
26.6
33.1
35.2
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 Adjusted for Family Size, 2012
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
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
-1,303
2,102
9,601
19,985
79,143
19,574
16,026
32,570
52,697
83,157
226,919
75,845
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
35,641
53,557
104,577
619,243
3,078,231
121,855
170,988
295,779
1,469,211
6,761,463
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.9
6.1
15.4
19.4
25.9
20.5
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.5
21.9
50.6
100.0
-1.4
2.3
10.2
20.4
68.4
100.0
22.6
23.9
26.1
29.7
31.3
14.8
9.5
13.4
16.7
7.6
14.4
9.1
12.4
14.7
6.5
16.3
11.0
17.0
24.1
11.5
Average
Federal Tax
6
Rate
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 policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 13311, 40% 24838, 60% 41873, 80% 68035, 90% 98420, 95% 140591, 99% 367918, 99.9%
1687910.
(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.
15-Sep-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0234
Administration's Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Elderly Tax Units
Percent of Tax Units
Cash Income Percentile
4
2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.5
0.1
0.0
0.0
0.0
0.0
10.6
2.0
0.0
0.0
0.0
0.0
-1.3
-0.7
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
2,529
465
0.0
0.0
0.0
0.0
4.3
3.6
0.0
-0.1
-0.1
-0.4
0.6
0.0
0.3
1.7
3.4
10.3
84.2
100.0
0.0
0.0
0.0
0.0
1.0
0.6
2.4
3.8
5.7
11.0
24.0
17.8
0.0
0.0
1.8
0.3
0.0
0.0
0.0
18.8
76.9
95.6
0.0
0.0
-0.2
-3.2
-4.6
0.0
0.0
3.6
96.5
61.1
0
0
361
31,589
204,762
0.0
0.0
0.6
7.9
10.0
-0.4
-0.3
-0.6
1.8
1.4
9.7
9.3
20.0
45.3
23.3
0.0
0.0
0.1
2.3
3.1
15.6
18.3
22.0
30.8
34.7
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 Adjusted for Family Size, 2012
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
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
262
846
2,355
7,727
59,230
13,025
10,637
21,682
38,739
62,511
197,818
62,713
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
16,426
28,074
58,678
398,360
2,055,295
89,018
125,029
209,204
998,601
4,464,796
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.4
3.8
5.7
11.0
23.0
17.2
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.3
12.1
17.9
58.0
100.0
0.3
1.8
3.5
10.7
83.6
100.0
15.6
18.3
21.9
28.5
31.5
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.2
22.6
9.9
10.0
9.6
20.6
43.4
21.9
Average
Federal Tax
6
Rate
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 policy which extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003. Proposal: retains a 20 percent rate on qualified dividends and capital gains for
taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized deductions
(Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after 2009; retains a top statutory tax rate of
39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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% 13311, 40% 24838, 60% 41873, 80% 68035, 90% 98420, 95% 140591, 99% 367918, 99.9%
1687910.
(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.