5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Summary Table
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units with Tax Increase or Cut 3
With Tax Cut
Pct of Tax Avg Tax Cut
Units
59.9
55.8
75.5
81.4
85.1
85.8
88.1
90.3
91.0
87.8
87.7
75.7
‐20
‐43
‐69
‐95
‐122
‐168
‐228
‐345
‐421
‐443
‐447
‐153
With Tax Increase
Avg Tax Pct of Tax Units
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.2
0.2
0.2
0.3
0.3
0.3
0.3
0.3
0.2
0.1
0.0
0.2
1.5
3.6
5.6
7.1
7.5
15.2
14.5
30.4
11.6
2.0
1.0
100.0
Average Federal Tax Change ($)
‐12
‐24
‐52
‐78
‐104
‐144
‐201
‐311
‐383
‐389
‐392
‐116
Average Federal Tax Rate5
Change (% Points)
Under the Proposal
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
‐0.1
0.0
‐0.2
2.1
1.8
6.9
11.2
14.0
16.6
18.9
22.8
25.6
25.1
29.0
20.3
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
Number of AMT Taxpayers (millions). Baseline: 31.2 Proposal: 31.2
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Increase
With Tax Cut
59.9
55.8
75.5
81.4
85.1
85.8
88.1
90.3
91.0
87.8
87.7
75.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.2
0.2
0.2
0.3
0.3
0.3
0.3
0.3
0.2
0.1
0.0
0.2
1.5
3.6
5.6
7.1
7.5
15.2
14.5
30.4
11.6
2.0
1.0
100.0
Average Federal Tax Change
Dollars
‐12
‐24
‐52
‐78
‐104
‐144
‐201
‐311
‐383
‐389
‐392
‐116
Percent
‐8.4
‐8.1
‐2.9
‐1.9
‐1.6
‐1.4
‐1.2
‐0.9
‐0.5
‐0.2
0.0
‐0.8
Share of Federal Taxes
Change (% Points)
0.0
0.0
0.0
0.0
0.0
‐0.1
0.0
0.0
0.1
0.0
0.2
0.0
Under the Proposal
0.1
0.3
1.5
3.0
3.7
9.0
9.7
26.1
19.1
7.5
19.8
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
‐0.1
0.0
‐0.2
Under the Proposal
2.1
1.8
6.9
11.2
14.0
16.6
18.9
22.8
25.6
25.1
29.0
20.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
23,654
28,341
20,820
17,491
13,844
20,187
13,838
18,707
5,808
1,003
503
165,201
Pre‐Tax Income
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
14.3
17.2
12.6
10.6
8.4
12.2
8.4
11.3
3.5
0.6
0.3
100.0
6,045
15,232
25,240
35,253
45,338
63,169
87,271
143,999
301,476
700,511
3,175,826
69,939
1.2
3.7
4.6
5.3
5.4
11.0
10.5
23.3
15.2
6.1
13.8
100.0
Average (dollars)
141
296
1,793
4,038
6,430
10,643
16,716
33,104
77,674
176,426
922,169
14,336
After‐Tax Income 4
Percent of Total
Average (dollars)
Percent of Total
0.1
0.4
1.6
3.0
3.8
9.1
9.8
26.2
19.1
7.5
19.6
100.0
5,904
14,936
23,447
31,215
38,909
52,526
70,555
110,895
223,802
524,085
2,253,657
55,604
1.5
4.6
5.3
5.9
5.9
11.5
10.6
22.6
14.2
5.7
12.4
100.0
Average Federal Tax Rate 5
2.3
1.9
7.1
11.5
14.2
16.9
19.2
23.0
25.8
25.2
29.0
20.5
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
Number of AMT Taxpayers (millions). Baseline: 31.2 Proposal: 31.2
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table ‐ Single Tax Units
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Increase
With Tax Cut
56.3
43.9
66.4
75.4
84.6
83.5
83.7
79.4
72.4
67.7
66.8
63.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.2
0.1
0.2
0.2
0.3
0.3
0.3
0.2
0.1
0.0
0.0
0.2
4.1
7.4
11.0
13.7
13.2
21.5
12.3
12.9
3.2
0.5
0.3
100.0
Average Federal Tax Change
Dollars
‐11
‐18
‐44
‐72
‐108
‐143
‐192
‐238
‐216
‐191
‐201
‐61
Share of Federal Taxes
Percent
Change (% Points)
‐3.1
‐2.1
‐1.6
‐1.4
‐1.3
‐1.1
‐1.0
‐0.7
‐0.3
‐0.1
0.0
‐0.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.0
Under the Proposal
1.2
3.0
6.2
8.8
9.2
17.3
11.3
16.0
10.3
4.4
12.3
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.2
‐0.1
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
0.0
0.0
‐0.2
Under the Proposal
5.7
5.6
11.1
14.7
18.5
20.7
22.9
23.7
25.7
25.5
32.2
18.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
18,677
19,704
12,248
9,316
6,007
7,366
3,136
2,656
714
138
67
80,620
Pre‐Tax Income
Percent of Total
Average (dollars)
23.2
24.4
15.2
11.6
7.5
9.1
3.9
3.3
0.9
0.2
0.1
100.0
5,934
15,064
25,068
35,203
45,161
62,176
86,024
139,722
307,687
678,159
3,141,069
36,344
Federal Tax Burden
Percent of Total
3.8
10.1
10.5
11.2
9.3
15.6
9.2
12.7
7.5
3.2
7.2
100.0
After‐Tax Income 4
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
350
856
2,814
5,262
8,472
13,002
19,909
33,323
79,219
172,818
1,011,418
6,859
1.2
3.1
6.2
8.9
9.2
17.3
11.3
16.0
10.2
4.3
12.2
100.0
5,584
14,208
22,254
29,940
36,689
49,173
66,115
106,399
228,467
505,341
2,129,652
29,486
4.4
11.8
11.5
11.7
9.3
15.2
8.7
11.9
6.9
2.9
6.0
100.0
Average Federal Tax Rate 5
5.9
5.7
11.2
15.0
18.8
20.9
23.1
23.9
25.8
25.5
32.2
18.9
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table ‐ Married Tax Units Filing Jointly
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Increase
With Tax Cut
62.7
77.5
80.4
80.5
79.7
84.5
88.8
92.0
93.7
91.0
91.4
86.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.3
0.2
0.2
0.2
0.2
0.3
0.3
0.3
0.2
0.1
0.0
0.2
0.2
0.9
1.6
2.5
3.7
11.4
15.9
42.1
17.1
3.0
1.5
100.0
Average Federal Tax Change
Dollars
‐16
‐38
‐57
‐75
‐89
‐138
‐201
‐325
‐411
‐426
‐429
‐207
Share of Federal Taxes
Percent
Change (% Points)
12.4
10.9
‐12.8
‐3.4
‐2.3
‐1.6
‐1.3
‐1.0
‐0.5
‐0.2
‐0.1
‐0.7
0.0
0.0
0.0
0.0
0.0
‐0.1
‐0.1
‐0.1
0.0
0.0
0.2
0.0
Under the Proposal
0.0
‐0.1
0.1
0.5
1.1
5.1
8.6
30.4
23.0
8.9
22.3
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.3
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
‐0.1
0.0
‐0.2
Under the Proposal
‐2.7
‐2.4
1.5
5.9
8.4
13.3
17.3
22.6
25.6
25.1
28.5
22.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
1,412
2,711
3,358
3,936
4,904
9,775
9,326
15,280
4,920
831
416
57,183
Pre‐Tax Income
Percent of Total
Average (dollars)
2.5
4.7
5.9
6.9
8.6
17.1
16.3
26.7
8.6
1.5
0.7
100.0
5,472
15,812
25,426
35,482
45,674
64,093
87,934
145,189
300,780
704,723
3,104,064
131,340
Federal Tax Burden
Percent of Total
0.1
0.6
1.1
1.9
3.0
8.3
10.9
29.5
19.7
7.8
17.2
100.0
Average (dollars)
‐130
‐346
449
2,181
3,929
8,663
15,415
33,083
77,525
177,210
884,696
29,038
After‐Tax Income 4
Percent of Total
Average (dollars)
Percent of Total
0.0
‐0.1
0.1
0.5
1.2
5.1
8.7
30.4
23.0
8.9
22.2
100.0
5,602
16,158
24,977
33,300
41,745
55,430
72,519
112,106
223,256
527,513
2,219,368
102,302
0.1
0.8
1.4
2.2
3.5
9.3
11.6
29.3
18.8
7.5
15.8
100.0
Average Federal Tax Rate 5
‐2.4
‐2.2
1.8
6.2
8.6
13.5
17.5
22.8
25.8
25.2
28.5
22.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table ‐ Head of Household Tax Units
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Increase
With Tax Cut
77.5
85.1
93.8
95.9
95.2
96.0
94.5
96.4
94.5
93.7
83.4
90.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.2
0.2
0.3
0.3
0.3
0.3
0.3
0.3
0.1
0.1
0.0
0.3
2.5
9.5
14.8
16.1
14.1
20.2
11.8
8.7
1.8
0.3
0.1
100.0
Average Federal Tax Change
Dollars
‐16
‐37
‐67
‐93
‐121
‐168
‐222
‐295
‐307
‐275
‐266
‐88
Share of Federal Taxes
Percent
Change (% Points)
1.7
2.5
128.9
‐3.5
‐2.0
‐1.6
‐1.2
‐0.9
‐0.4
‐0.2
0.0
‐2.0
‐0.1
‐0.4
‐0.3
‐0.1
0.0
0.1
0.2
0.2
0.2
0.1
0.2
0.0
Under the Proposal
‐3.0
‐8.1
‐0.6
9.3
14.5
26.8
19.7
19.6
9.2
3.7
8.8
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.2
‐0.2
‐0.3
‐0.3
‐0.3
‐0.3
‐0.3
‐0.2
‐0.1
0.0
0.0
‐0.2
Under the Proposal
‐13.6
‐9.7
‐0.5
7.3
13.1
17.1
20.6
23.6
25.1
24.2
29.4
11.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
3,397
5,620
4,820
3,780
2,556
2,617
1,162
643
131
24
10
24,826
Pre‐Tax Income
Percent of Total
Average (dollars)
13.7
22.6
19.4
15.2
10.3
10.5
4.7
2.6
0.5
0.1
0.0
100.0
6,878
15,507
25,513
35,084
45,194
62,439
85,840
134,826
294,742
678,200
3,014,509
36,919
Federal Tax Burden
Percent of Total
2.6
9.5
13.4
14.5
12.6
17.8
10.9
9.5
4.2
1.8
3.4
100.0
Average (dollars)
‐922
‐1,461
‐52
2,663
6,059
10,866
17,936
32,093
74,125
164,618
886,458
4,301
After‐Tax Income 4
Percent of Total
Average (dollars)
Percent of Total
‐2.9
‐7.7
‐0.2
9.4
14.5
26.6
19.5
19.3
9.1
3.7
8.7
100.0
7,799
16,968
25,565
32,421
39,135
51,573
67,904
102,733
220,617
513,582
2,128,051
32,618
3.3
11.8
15.2
15.1
12.4
16.7
9.7
8.2
3.6
1.5
2.7
100.0
Average Federal Tax Rate 5
‐13.4
‐9.4
‐0.2
7.6
13.4
17.4
20.9
23.8
25.2
24.3
29.4
11.7
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table ‐ Tax Units with Children
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Increase
With Tax Cut
77.4
95.1
98.4
98.7
98.2
98.4
98.9
99.2
99.1
98.4
96.1
96.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.2
0.2
0.3
0.3
0.3
0.3
0.4
0.3
0.2
0.1
0.0
0.3
0.7
2.8
4.5
5.5
5.8
13.2
15.0
35.1
13.9
2.3
1.1
100.0
Average Federal Tax Change
Dollars
‐17
‐42
‐72
‐98
‐126
‐180
‐247
‐376
‐464
‐489
‐489
‐185
Percent
1.4
1.8
7.8
‐5.2
‐2.6
‐1.8
‐1.5
‐1.1
‐0.6
‐0.3
‐0.1
‐1.0
Share of Federal Taxes
Change (% Points)
0.0
0.0
‐0.1
0.0
0.0
‐0.1
‐0.1
0.0
0.1
0.1
0.2
0.0
Under the Proposal
‐0.5
‐1.6
‐0.6
1.0
2.2
7.0
9.6
31.0
23.4
8.7
19.9
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.3
‐0.3
‐0.3
‐0.3
‐0.3
‐0.3
‐0.3
‐0.3
‐0.2
‐0.1
0.0
‐0.2
Under the Proposal
‐19.2
‐15.3
‐3.9
5.1
10.6
15.3
18.5
23.5
26.7
26.5
29.7
20.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
3,846
5,948
5,713
5,081
4,169
6,587
5,463
8,400
2,702
430
199
48,707
Pre‐Tax Income
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
7.9
12.2
11.7
10.4
8.6
13.5
11.2
17.3
5.6
0.9
0.4
100.0
6,428
15,742
25,506
35,137
45,275
63,896
87,562
145,248
300,076
708,894
3,113,066
91,956
0.6
2.1
3.3
4.0
4.2
9.4
10.7
27.2
18.1
6.8
13.8
100.0
Average (dollars)
‐1,218
‐2,367
‐920
1,884
4,934
9,948
16,461
34,470
80,421
188,077
925,173
19,174
After‐Tax Income 4
Percent of Total
Average (dollars)
Percent of Total
‐0.5
‐1.5
‐0.6
1.0
2.2
7.0
9.6
31.0
23.3
8.7
19.7
100.0
7,645
18,109
26,426
33,254
40,341
53,948
71,101
110,778
219,655
520,818
2,187,894
72,782
0.8
3.0
4.3
4.8
4.7
10.0
11.0
26.3
16.7
6.3
12.3
100.0
Average Federal Tax Rate 5
‐19.0
‐15.0
‐3.6
5.4
10.9
15.6
18.8
23.7
26.8
26.5
29.7
20.9
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
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 without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0005
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table ‐ Elderly Tax Units
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Increase
With Tax Cut
3.9
5.2
21.0
30.3
40.6
47.1
51.9
54.8
62.5
56.6
65.9
29.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.1
0.1
0.8
2.3
4.3
6.1
16.9
15.6
32.5
15.9
3.2
2.2
100.0
Average Federal Tax Change
Dollars
0
‐1
‐5
‐12
‐22
‐38
‐56
‐96
‐144
‐149
‐192
‐29
Percent
‐0.9
‐0.8
‐0.8
‐0.8
‐0.9
‐0.6
‐0.5
‐0.4
‐0.2
‐0.1
0.0
‐0.3
Share of Federal Taxes
Change (% Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
Under the Proposal
0.0
0.3
0.7
1.5
1.9
6.9
8.5
22.6
20.4
9.1
28.1
100.0
Average Federal Tax Rate5
Change (% Points)
0.0
0.0
0.0
0.0
‐0.1
‐0.1
‐0.1
‐0.1
‐0.1
0.0
0.0
0.0
Under the Proposal
0.8
0.8
2.4
4.6
5.6
9.5
13.1
17.8
22.9
23.4
29.3
16.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level (thousands of 2011 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
3,154
8,698
4,924
3,727
2,930
4,733
2,996
3,598
1,179
229
122
36,319
Pre‐Tax Income
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
8.7
24.0
13.6
10.3
8.1
13.0
8.3
9.9
3.3
0.6
0.3
100.0
6,651
14,806
24,706
35,197
45,938
62,567
87,118
142,540
304,739
685,254
3,174,793
69,121
0.8
5.1
4.9
5.2
5.4
11.8
10.4
20.4
14.3
6.3
15.5
100.0
Average (dollars)
51
120
600
1,619
2,577
5,954
11,489
25,516
69,957
160,228
930,613
11,159
After‐Tax Income 4
Percent of Total
Average (dollars)
Percent of Total
0.0
0.3
0.7
1.5
1.9
7.0
8.5
22.7
20.4
9.1
28.1
100.0
6,600
14,686
24,106
33,578
43,361
56,613
75,629
117,024
234,783
525,026
2,244,181
57,962
1.0
6.1
5.6
5.9
6.0
12.7
10.8
20.0
13.2
5.7
13.0
100.0
Average Federal Tax Rate 5
0.8
0.8
2.4
4.6
5.6
9.5
13.2
17.9
23.0
23.4
29.3
16.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
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 without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) After‐tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.