12-Oct-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 T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2014 1
Summary Table
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
4
With Tax
Increase
Percent
Change in
After-Tax
5
Income
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
30.1
38.8
39.7
33.7
17.2
32.4
13.2
21.0
26.3
37.7
65.8
29.5
1.9
0.9
0.5
0.2
-2.3
-0.9
-9.2
-9.2
-7.7
-4.7
130.7
100.0
-217
-236
-219
-159
5,100
576
-1.8
-0.8
-0.4
-0.2
1.7
0.7
2.9
9.4
16.0
19.2
26.5
21.4
22.9
17.1
7.1
1.6
0.0
54.2
67.3
85.4
97.8
99.9
0.1
-0.1
-1.2
-6.2
-7.8
-2.1
0.6
16.9
115.3
64.8
-160
91
3,316
88,500
491,995
-0.1
0.0
0.9
4.5
5.4
21.8
23.2
25.8
32.4
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 5.7
Proposal: 4.6
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for
inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC
credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit making it equal to 50% of the first $500 of
retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the
$3,000 child tax credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction
and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized
deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends
for taxpayers in the top two tax brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and
experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax
treatment of financial institutions.
(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% $19,925, 40% $38,371, 60% $67,991, 80% $116,859, 90% $169,290, 95% $237,098, 99% $632,966, 99.9% $2,923,051.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile, 2014
Detail Table
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
30.1
38.8
39.7
33.7
17.2
32.4
13.2
21.0
26.3
37.7
65.8
29.5
1.9
0.9
0.5
0.2
-2.3
-0.9
-9.2
-9.2
-7.7
-4.7
130.7
100.0
-217
-236
-219
-159
5,100
576
-37.7
-7.6
-2.4
-0.9
6.8
3.4
-0.3
-0.4
-0.6
-0.8
2.2
0.0
0.5
3.7
10.2
17.7
67.8
100.0
-1.8
-0.8
-0.4
-0.2
1.7
0.7
2.9
9.4
16.0
19.2
26.5
21.4
22.9
17.1
7.1
1.6
0.0
54.2
67.3
85.4
97.8
99.9
0.1
-0.1
-1.2
-6.2
-7.8
-2.1
0.6
16.9
115.3
64.8
-160
91
3,316
88,500
491,995
-0.5
0.2
3.6
15.9
18.1
-0.5
-0.3
0.0
3.0
1.7
13.8
10.2
16.1
27.7
14.0
-0.1
0.0
0.9
4.5
5.4
21.8
23.2
25.8
32.4
35.6
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, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
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
39,416
36,129
32,694
27,378
23,893
161,771
24.4
22.3
20.2
16.9
14.8
100.0
12,314
30,366
55,193
95,202
301,906
81,418
575
3,098
9,023
18,410
75,034
16,876
11,739
27,268
46,169
76,793
226,872
64,542
4.7
10.2
16.4
19.3
24.9
20.7
3.7
8.3
13.7
19.8
54.8
100.0
4.4
9.4
14.5
20.1
51.9
100.0
0.8
4.1
10.8
18.5
65.7
100.0
12,052
5,875
4,752
1,215
123
7.5
3.6
2.9
0.8
0.1
148,490
211,074
372,043
1,988,880
9,038,534
32,499
48,856
92,545
555,126
2,721,914
115,991
162,218
279,498
1,433,754
6,316,620
21.9
23.2
24.9
27.9
30.1
13.6
9.4
13.4
18.3
8.4
13.4
9.1
12.7
16.7
7.4
14.4
10.5
16.1
24.7
12.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 5.7
Proposal: 4.6
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $19,925, 40%
$38,371, 60% $67,991, 80% $116,859, 90% $169,290, 95% $237,098, 99% $632,966, 99.9% $2,923,051.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014
Detail Table
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
37.7
36.5
42.5
31.5
14.3
32.4
10.3
18.6
23.5
35.2
63.8
29.5
2.8
0.9
0.5
0.3
-2.1
-0.9
-11.2
-8.0
-7.1
-5.9
132.2
100.0
-321
-221
-206
-180
4,030
576
-198.6
-9.3
-2.8
-1.2
6.4
3.4
-0.4
-0.4
-0.5
-0.8
2.0
0.0
-0.2
2.6
8.1
16.8
72.6
100.0
-2.8
-0.8
-0.4
-0.2
1.6
0.7
-1.4
7.8
14.5
18.7
26.4
21.4
19.7
12.1
6.6
1.3
0.0
51.3
66.6
83.6
97.9
99.9
0.1
-0.1
-1.1
-5.9
-7.6
-1.9
0.9
16.7
116.5
66.7
-117
111
2,572
74,327
426,172
-0.4
0.3
3.3
15.5
17.9
-0.6
-0.4
0.0
3.0
1.8
15.1
11.5
17.4
28.7
14.5
-0.1
0.1
0.8
4.3
5.4
22.0
23.4
25.5
32.0
35.3
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, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
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
32,445
33,595
32,248
30,634
30,589
161,771
20.1
20.8
19.9
18.9
18.9
100.0
11,625
27,586
48,898
83,092
254,362
81,418
162
2,363
7,274
15,682
62,991
16,876
11,463
25,223
41,623
67,410
191,371
64,542
1.4
8.6
14.9
18.9
24.8
20.7
2.9
7.0
12.0
19.3
59.1
100.0
3.6
8.1
12.9
19.8
56.1
100.0
0.2
2.9
8.6
17.6
70.6
100.0
15,343
7,725
6,061
1,461
146
9.5
4.8
3.8
0.9
0.1
126,648
179,728
316,716
1,731,056
7,958,455
27,959
41,885
78,230
479,127
2,379,965
98,688
137,842
238,486
1,251,929
5,578,490
22.1
23.3
24.7
27.7
29.9
14.8
10.5
14.6
19.2
8.8
14.5
10.2
13.8
17.5
7.8
15.7
11.9
17.4
25.7
12.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 5.7
Proposal: 4.6
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99%
$382,124, 99.9% $1,787,588.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014
Detail Table - Single Tax Units
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
20.7
20.4
32.2
17.9
10.2
20.9
11.4
22.7
26.5
36.2
59.1
27.6
1.4
0.5
0.4
0.2
-1.5
-0.5
-17.2
-13.0
-14.4
-8.1
153.4
100.0
-118
-93
-117
-82
1,863
166
-18.5
-4.3
-2.0
-0.7
4.5
1.7
-0.3
-0.3
-0.5
-0.5
1.6
0.0
1.3
4.9
12.3
20.9
60.6
100.0
-1.3
-0.4
-0.3
-0.1
1.1
0.4
5.8
9.7
16.1
20.8
26.6
21.0
13.8
7.3
5.8
1.8
0.0
47.3
63.0
79.7
97.3
99.9
0.1
-0.2
-0.6
-5.4
-7.8
-1.5
3.2
15.7
135.9
81.4
-34
155
1,023
44,534
300,169
-0.2
0.5
1.9
13.0
16.0
-0.3
-0.1
0.0
2.0
1.2
15.5
11.0
14.2
20.0
10.0
0.0
0.1
0.5
3.8
5.3
23.5
24.4
24.8
33.2
38.2
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, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
17,338
16,635
14,693
11,840
9,787
71,749
24.2
23.2
20.5
16.5
13.6
100.0
8,939
21,188
36,403
59,738
164,155
46,638
638
2,156
5,989
12,480
41,750
9,646
8,302
19,032
30,415
47,258
122,405
36,992
5,137
2,463
1,825
363
32
7.2
3.4
2.5
0.5
0.0
90,448
128,290
220,487
1,167,870
5,717,077
21,319
31,141
53,592
343,469
1,880,713
69,129
97,149
166,895
824,400
3,836,364
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.1
10.2
16.5
20.9
25.4
20.7
4.6
10.5
16.0
21.1
48.0
100.0
5.4
11.9
16.8
21.1
45.1
100.0
1.6
5.2
12.7
21.4
59.0
100.0
23.6
24.3
24.3
29.4
32.9
13.9
9.4
12.0
12.7
5.5
13.4
9.0
11.5
11.3
4.7
15.8
11.1
14.1
18.0
8.8
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 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99%
$382,124, 99.9% $1,787,588.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014
Detail Table - Married Tax Units Filing Jointly
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
43.7
50.4
50.5
41.6
16.6
36.7
16.0
21.8
26.4
37.0
67.5
39.7
2.7
1.1
0.5
0.3
-2.3
-1.3
-3.2
-3.7
-3.6
-4.2
114.6
100.0
-415
-357
-266
-236
5,167
1,384
-200.4
-12.5
-3.2
-1.3
6.9
4.7
-0.2
-0.2
-0.4
-0.9
1.7
0.0
-0.1
1.2
4.9
14.2
79.6
100.0
-2.7
-1.0
-0.4
-0.2
1.7
1.0
-1.4
7.1
13.0
17.5
26.3
22.6
23.8
14.1
7.2
1.3
0.1
54.9
69.3
86.0
98.0
99.9
0.2
-0.1
-1.2
-6.0
-7.6
-1.8
0.5
15.4
100.6
55.9
-174
93
3,314
83,187
455,802
-0.6
0.2
3.7
16.0
18.3
-0.8
-0.6
-0.2
3.2
1.9
15.1
12.3
19.5
32.7
16.2
-0.1
0.1
0.9
4.4
5.4
21.3
23.0
25.8
31.6
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, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,636
8,855
11,532
15,214
19,015
61,925
10.7
14.3
18.6
24.6
30.7
100.0
15,449
35,411
63,113
102,030
304,240
136,599
207
2,856
8,442
18,069
74,681
29,414
15,242
32,555
54,671
83,961
229,558
107,185
9,075
4,934
3,970
1,036
105
14.7
8.0
6.4
1.7
0.2
148,661
206,766
363,199
1,904,848
8,500,613
31,899
47,507
90,240
519,102
2,489,680
116,762
159,259
272,959
1,385,746
6,010,932
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.3
8.1
13.4
17.7
24.6
21.5
1.2
3.7
8.6
18.4
68.4
100.0
1.5
4.3
9.5
19.2
65.8
100.0
0.1
1.4
5.3
15.1
78.0
100.0
21.5
23.0
24.9
27.3
29.3
16.0
12.1
17.1
23.3
10.6
16.0
11.8
16.3
21.6
9.5
15.9
12.9
19.7
29.5
14.4
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 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99%
$382,124, 99.9% $1,787,588.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014
Detail Table - Head of Household Tax Units
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
69.4
55.7
55.6
37.3
13.2
55.6
3.2
6.2
10.5
24.0
48.0
10.3
4.5
1.2
0.8
0.5
-1.3
0.9
65.3
31.3
21.3
11.1
-29.1
100.0
-682
-349
-341
-325
1,934
-335
74.9
-16.1
-4.2
-2.0
4.1
-5.3
-3.9
-1.2
0.3
1.1
3.7
0.0
-8.5
9.1
27.4
30.9
41.0
100.0
-4.8
-1.1
-0.6
-0.4
1.0
-0.8
-11.2
5.6
14.7
19.5
25.3
13.4
14.5
17.2
5.1
0.0
0.1
40.3
51.8
68.7
98.3
99.3
0.1
0.0
-0.7
-5.8
-7.6
0.6
0.1
-3.7
-26.1
-13.8
-65
-20
1,700
63,664
403,713
-0.2
-0.1
2.4
15.0
17.7
0.8
0.3
0.7
2.0
1.0
15.2
6.1
8.6
11.2
5.1
-0.1
0.0
0.6
4.2
5.3
23.0
23.6
23.9
32.2
35.4
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, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
8,213
7,711
5,352
2,936
1,291
25,605
32.1
30.1
20.9
11.5
5.0
100.0
14,265
32,535
53,424
82,768
193,413
44,717
-911
2,160
8,207
16,491
46,893
6,333
15,176
30,375
45,217
66,277
146,520
38,385
836
234
185
35
3
3.3
0.9
0.7
0.1
0.0
121,470
168,242
298,680
1,516,552
7,596,169
27,974
39,746
69,726
423,877
2,283,498
93,497
128,496
228,954
1,092,675
5,312,671
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.4
6.6
15.4
19.9
24.3
14.2
10.2
21.9
25.0
21.2
21.8
100.0
12.7
23.8
24.6
19.8
19.2
100.0
-4.6
10.3
27.1
29.9
37.3
100.0
23.0
23.6
23.3
28.0
30.1
8.9
3.4
4.8
4.7
2.0
8.0
3.1
4.3
3.9
1.6
14.4
5.7
8.0
9.2
4.1
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 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99%
$382,124, 99.9% $1,787,588.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014
Detail Table - Tax Units with Children
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
78.3
70.4
64.3
46.9
22.1
57.6
2.1
4.7
10.8
25.7
60.8
19.2
4.8
1.5
0.7
0.4
-2.4
-0.7
-31.0
-20.1
-15.7
-14.4
181.2
100.0
-819
-523
-411
-389
5,805
544
64.9
-21.1
-4.0
-1.8
6.8
2.6
-0.7
-0.6
-0.7
-0.9
2.8
0.0
-2.0
1.9
9.4
19.5
71.1
100.0
-5.2
-1.4
-0.6
-0.4
1.8
0.5
-13.3
5.3
14.8
19.1
27.6
21.2
31.1
18.8
5.9
0.9
0.0
46.6
64.1
87.6
98.4
100.0
0.3
0.0
-1.7
-6.9
-8.1
-6.4
-0.3
32.8
155.1
79.3
-389
-34
5,547
109,678
594,754
-1.0
-0.1
4.9
16.9
18.5
-0.6
-0.3
0.4
3.3
1.7
15.8
10.8
17.6
27.0
12.7
-0.2
0.0
1.3
4.9
5.6
22.6
24.1
27.5
33.9
35.9
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, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
10,239
10,393
10,382
10,009
8,454
49,780
20.6
20.9
20.9
20.1
17.0
100.0
15,665
36,734
65,963
110,334
330,139
102,631
-1,263
2,474
10,194
21,430
85,133
21,174
16,927
34,260
55,769
88,904
245,006
81,457
4,468
2,003
1,599
383
36
9.0
4.0
3.2
0.8
0.1
169,045
241,711
432,254
2,245,797
10,608,037
38,552
58,220
113,488
650,973
3,216,198
130,493
183,491
318,767
1,594,824
7,391,838
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.1
6.7
15.5
19.4
25.8
20.6
3.1
7.5
13.4
21.6
54.6
100.0
4.3
8.8
14.3
22.0
51.1
100.0
-1.2
2.4
10.0
20.4
68.3
100.0
22.8
24.1
26.3
29.0
30.3
14.8
9.5
13.5
16.8
7.5
14.4
9.1
12.6
15.1
6.6
16.3
11.1
17.2
23.7
11.0
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 0509-4).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99%
$382,124, 99.9% $1,787,588.
(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.
12-Oct-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0244
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014
Detail Table - Elderly Tax Units
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
5.7
5.7
8.6
11.9
4.4
7.1
25.1
39.6
60.9
71.0
87.8
55.3
0.1
0.0
-0.1
-0.1
-2.6
-1.5
-0.2
0.2
0.8
1.3
97.9
100.0
-14
5
41
76
5,476
996
-5.3
0.6
1.7
0.9
8.8
7.5
0.0
-0.1
-0.2
-0.7
1.0
0.0
0.3
1.7
3.4
10.1
84.4
100.0
-0.1
0.0
0.1
0.1
2.0
1.3
2.2
3.7
5.7
10.9
24.5
17.9
5.5
4.6
3.2
1.0
0.0
82.8
87.7
93.9
98.0
99.8
-0.3
-0.4
-1.0
-5.6
-7.5
2.1
2.6
9.8
83.4
51.7
270
586
2,270
64,493
369,321
1.5
2.0
3.7
14.5
17.2
-0.6
-0.5
-0.7
2.8
2.0
9.9
9.3
19.1
46.1
24.7
0.2
0.4
0.8
4.0
5.2
15.8
18.4
22.1
31.7
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 Adjusted for Family Size, 2014
Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
5,217
8,927
6,483
5,566
5,729
32,167
16.2
27.8
20.2
17.3
17.8
100.0
11,689
23,861
42,973
75,950
276,230
79,440
271
866
2,389
8,232
62,078
13,258
11,418
22,995
40,584
67,718
214,151
66,182
2,522
1,413
1,379
414
45
7.8
4.4
4.3
1.3
0.1
114,468
163,898
286,923
1,607,917
7,094,632
17,794
29,530
61,111
445,728
2,150,675
96,674
134,368
225,812
1,162,188
4,943,956
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
3.6
5.6
10.8
22.5
16.7
2.4
8.3
10.9
16.5
61.9
100.0
2.8
9.6
12.4
17.7
57.6
100.0
0.3
1.8
3.6
10.7
83.4
100.0
15.5
18.0
21.3
27.7
30.3
11.3
9.1
15.5
26.1
12.5
11.5
8.9
14.6
22.6
10.4
10.5
9.8
19.8
43.3
22.6
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 0509-4).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (b) modify the saver's credit
making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal
exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out
and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax
brackets; (j) limit value of itemized deductions to 28 percent. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99%
$382,124, 99.9% $1,787,588.
(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.