13-Feb-09
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 T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
1
Distribution of Federal Tax Change by Cash Income Percentile, 2009
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
61.6
79.1
86.7
85.6
56.7
73.7
0.0
0.0
0.0
0.0
0.0
0.0
2.2
1.5
1.0
0.7
0.2
0.6
16.0
21.5
23.6
23.4
15.2
100.0
-230
-367
-442
-523
-384
-374
-2.1
-1.3
-0.9
-0.6
-0.1
-0.5
1.9
9.2
15.8
19.1
26.1
21.1
76.1
66.5
8.9
3.8
0.8
0.0
0.0
0.0
0.0
0.0
0.6
0.2
0.0
0.0
0.0
11.4
3.4
0.4
0.1
0.0
-571
-348
-47
-23
-5
-0.4
-0.2
0.0
0.0
0.0
22.2
24.2
26.3
29.5
31.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of
the provisions until filing their 2009 tax returns in April of 2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference
Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
Number of AMT Taxpayers (millions). Baseline: 30.3
Proposal: 30.3
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or
veterans benefits. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf.
Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400 ($800 for joint filers) phased out at a rate of 2 percent
of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $18,981, 40% $37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918, 99% $603,402, 99.9% $2,871,682.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile, 2009 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
61.6
79.1
86.7
85.6
56.7
73.7
0.0
0.0
0.0
0.0
0.0
0.0
2.2
1.5
1.0
0.7
0.2
0.6
16.0
21.5
23.6
23.4
15.2
100.0
-230
-367
-442
-523
-384
-374
-53.0
-12.5
-5.1
-3.0
-0.5
-2.3
-0.4
-0.4
-0.3
-0.1
1.2
0.0
0.3
3.5
10.4
17.7
67.9
100.0
-2.1
-1.3
-0.9
-0.6
-0.1
-0.5
1.9
9.2
15.8
19.1
26.1
21.1
76.1
66.5
8.9
3.8
0.8
0.0
0.0
0.0
0.0
0.0
0.6
0.2
0.0
0.0
0.0
11.4
3.4
0.4
0.1
0.0
-571
-348
-47
-23
-5
-1.9
-0.7
-0.1
0.0
0.0
0.1
0.2
0.4
0.6
0.3
14.2
10.6
16.7
26.4
13.4
-0.4
-0.2
0.0
0.0
0.0
22.2
24.2
26.3
29.5
31.3
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, 2009 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
39,102
32,942
30,075
25,152
22,287
150,241
26.0
21.9
20.0
16.7
14.8
100.0
10,744
28,057
51,924
87,992
279,244
75,289
434
2,935
8,669
17,362
73,180
16,274
10,310
25,121
43,255
70,630
206,064
59,015
4.0
10.5
16.7
19.7
26.2
21.6
3.7
8.2
13.8
19.6
55.0
100.0
4.6
9.3
14.7
20.0
51.8
100.0
0.7
4.0
10.7
17.9
66.7
100.0
11,264
5,439
4,454
1,131
114
7.5
3.6
3.0
0.8
0.1
135,143
192,266
340,985
1,889,937
8,929,410
30,596
46,869
89,845
558,322
2,798,242
104,547
145,398
251,141
1,331,615
6,131,168
22.6
24.4
26.4
29.5
31.3
13.5
9.3
13.4
18.9
9.0
13.3
8.9
12.6
17.0
7.9
14.1
10.4
16.4
25.8
13.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3
Proposal: 30.3
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400 ($800
for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $18,981, 40%
$37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918, 99% $603,402, 99.9% $2,871,682.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 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
66.5
72.1
85.5
86.6
59.3
73.7
0.0
0.0
0.0
0.0
0.0
0.0
2.6
1.5
1.2
0.8
0.2
0.6
15.1
19.3
23.3
25.1
16.9
100.0
-262
-350
-449
-495
-334
-374
-445.7
-16.7
-6.2
-3.3
-0.6
-2.3
-0.4
-0.4
-0.4
-0.2
1.3
0.0
-0.3
2.3
8.3
17.2
72.5
100.0
-2.6
-1.4
-1.0
-0.7
-0.1
-0.5
-2.0
6.9
14.7
18.8
25.8
21.1
84.6
54.9
13.8
4.6
1.1
0.0
0.0
0.0
0.0
0.0
0.6
0.2
0.0
0.0
0.0
12.6
3.7
0.6
0.1
0.0
-494
-292
-55
-25
-5
-1.9
-0.7
-0.1
0.0
0.0
0.1
0.2
0.4
0.6
0.3
15.4
11.8
17.8
27.5
13.9
-0.4
-0.2
0.0
0.0
0.0
22.2
23.9
25.9
29.4
31.3
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, 2009
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
32,429
30,972
29,186
28,494
28,475
150,241
21.6
20.6
19.4
19.0
19.0
100.0
10,059
25,261
46,073
76,773
235,357
75,289
59
2,101
7,199
14,889
61,131
16,274
10,000
23,160
38,874
61,884
174,226
59,015
0.6
8.3
15.6
19.4
26.0
21.6
2.9
6.9
11.9
19.3
59.3
100.0
3.7
8.1
12.8
19.9
56.0
100.0
0.1
2.7
8.6
17.4
71.2
100.0
14,316
7,191
5,606
1,362
135
9.5
4.8
3.7
0.9
0.1
115,555
163,422
292,160
1,640,591
7,862,950
26,162
39,419
75,825
482,840
2,460,570
89,392
124,003
216,335
1,157,751
5,402,380
22.6
24.1
26.0
29.4
31.3
14.6
10.4
14.5
19.8
9.4
14.4
10.1
13.7
17.8
8.2
15.3
11.6
17.4
26.9
13.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3
Proposal: 30.3
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711,
99.9% $1,730,730.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 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
58.7
59.3
81.6
83.7
51.8
66.3
0.0
0.0
0.0
0.0
0.0
0.0
2.6
1.3
1.1
0.7
0.2
0.7
21.7
21.5
25.7
21.7
9.2
100.0
-187
-225
-316
-318
-164
-238
-41.6
-11.4
-5.4
-2.8
-0.4
-2.7
-0.6
-0.5
-0.4
0.0
1.4
0.0
0.8
4.6
12.5
20.6
61.4
100.0
-2.4
-1.2
-0.9
-0.6
-0.1
-0.6
3.4
9.2
16.7
20.1
26.2
20.7
82.2
27.6
6.9
4.1
0.3
0.0
0.0
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.0
8.3
0.7
0.2
0.0
0.0
-279
-51
-18
-13
-1
-1.5
-0.2
0.0
0.0
0.0
0.2
0.3
0.4
0.6
0.3
15.5
11.0
14.4
20.5
10.2
-0.3
0.0
0.0
0.0
0.0
23.1
24.3
25.3
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
by Cash Income Percentile Adjusted for Family Size, 2009 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
17,979
14,788
12,570
10,552
8,719
64,958
27.7
22.8
19.4
16.2
13.4
100.0
7,650
19,082
33,514
54,870
151,432
42,053
449
1,984
5,906
11,361
39,899
8,931
7,201
17,099
27,608
43,509
111,533
33,122
4,605
2,193
1,584
338
30
7.1
3.4
2.4
0.5
0.1
82,197
116,199
201,882
1,087,643
5,550,592
19,283
28,319
51,151
343,438
1,927,397
62,914
87,880
150,731
744,205
3,623,194
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
5.9
10.4
17.6
20.7
26.4
21.2
5.0
10.3
15.4
21.2
48.3
100.0
6.0
11.8
16.1
21.3
45.2
100.0
1.4
5.1
12.8
20.7
60.0
100.0
23.5
24.4
25.3
31.6
34.7
13.9
9.3
11.7
13.5
6.1
13.5
9.0
11.1
11.7
5.0
15.3
10.7
14.0
20.0
9.9
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 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400 ($800
for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711,
99.9% $1,730,730.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 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
65.1
74.2
84.7
87.6
64.6
75.5
0.0
0.0
0.0
0.0
0.0
0.0
3.1
1.8
1.3
0.9
0.2
0.6
8.4
14.7
21.9
30.2
24.5
100.0
-410
-550
-640
-656
-435
-542
-608.4
-21.6
-7.6
-3.8
-0.6
-1.9
-0.2
-0.3
-0.3
-0.3
1.0
0.0
-0.1
1.0
5.2
15.0
78.7
100.0
-3.1
-1.7
-1.1
-0.7
-0.2
-0.4
-2.6
6.2
13.1
17.9
25.7
22.2
89.0
69.7
17.2
4.9
1.4
0.0
0.0
0.0
0.0
0.0
0.6
0.3
0.0
0.0
0.0
17.5
6.1
0.9
0.1
0.0
-645
-420
-73
-30
-7
-2.2
-0.9
-0.1
0.0
0.0
0.0
0.1
0.4
0.6
0.3
15.5
12.7
19.9
30.7
15.3
-0.5
-0.2
0.0
0.0
0.0
21.8
23.8
26.1
29.0
30.6
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, 2009 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
6,621
8,578
11,027
14,829
18,163
59,479
11.1
14.4
18.5
24.9
30.5
100.0
13,343
32,397
59,438
93,284
278,505
125,155
67
2,546
8,446
17,392
71,994
28,295
13,276
29,851
50,992
75,892
206,511
96,860
8,717
4,700
3,780
965
97
14.7
7.9
6.4
1.6
0.2
134,567
186,829
332,302
1,813,978
8,464,842
29,975
44,852
86,826
525,498
2,593,673
104,592
141,976
245,475
1,288,481
5,871,168
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.5
7.9
14.2
18.6
25.9
22.6
1.2
3.7
8.8
18.6
68.0
100.0
1.5
4.4
9.8
19.5
65.1
100.0
0.0
1.3
5.5
15.3
77.7
100.0
22.3
24.0
26.1
29.0
30.6
15.8
11.8
16.9
23.5
11.1
15.8
11.6
16.1
21.6
9.9
15.5
12.5
19.5
30.1
15.0
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 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400 ($800
for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711,
99.9% $1,730,730.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 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
85.9
94.6
96.2
92.5
34.4
88.8
0.0
0.0
0.0
0.0
0.0
0.0
2.2
1.3
0.9
0.6
0.1
1.0
30.3
34.3
23.5
10.6
1.3
100.0
-310
-369
-373
-330
-90
-333
34.0
-21.3
-4.9
-2.2
-0.2
-5.9
-2.2
-1.6
0.3
1.1
2.3
0.0
-7.4
7.9
28.5
29.9
41.1
100.0
-2.4
-1.3
-0.8
-0.4
-0.1
-0.8
-9.4
4.6
14.8
19.9
25.3
13.3
47.1
18.8
2.9
1.0
0.5
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.0
0.0
1.2
0.1
0.0
0.0
0.0
-128
-32
-8
-2
-1
-0.5
-0.1
0.0
0.0
0.0
0.8
0.4
0.5
0.7
0.3
15.1
6.2
8.8
11.1
5.3
-0.1
0.0
0.0
0.0
0.0
23.4
24.5
25.0
29.2
31.0
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, 2009 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
7,558
7,198
4,877
2,482
1,128
23,292
32.5
30.9
20.9
10.7
4.8
100.0
12,952
29,592
49,284
75,584
179,427
40,351
-913
1,732
7,649
15,347
45,401
5,680
13,865
27,861
41,634
60,237
134,026
34,672
730
209
158
31
3
3.1
0.9
0.7
0.1
0.0
109,967
149,881
276,495
1,510,258
7,770,538
25,832
36,780
69,033
441,112
2,410,823
84,135
113,101
207,461
1,069,147
5,359,715
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-7.1
5.9
15.5
20.3
25.3
14.1
10.4
22.7
25.6
20.0
21.5
100.0
13.0
24.8
25.1
18.5
18.7
100.0
-5.2
9.4
28.2
28.8
38.7
100.0
23.5
24.5
25.0
29.2
31.0
8.6
3.3
4.7
5.0
2.3
7.6
2.9
4.1
4.1
1.8
14.3
5.8
8.3
10.4
5.0
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 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400 ($800
for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711,
99.9% $1,730,730.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 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
91.5
98.5
98.4
98.0
58.5
90.1
0.0
0.0
0.0
0.0
0.0
0.0
2.7
1.7
1.2
0.9
0.2
0.7
15.9
21.1
25.1
25.6
12.1
100.0
-421
-532
-614
-686
-377
-531
34.1
-26.3
-6.5
-3.3
-0.5
-2.6
-0.5
-0.5
-0.4
-0.2
1.5
0.0
-1.7
1.6
9.7
19.9
70.4
100.0
-3.0
-1.6
-1.0
-0.7
-0.1
-0.6
-11.7
4.4
14.6
19.7
26.8
20.9
88.8
46.1
5.1
1.6
0.4
0.0
0.0
0.0
0.0
0.0
0.5
0.1
0.0
0.0
0.0
10.3
1.6
0.2
0.0
0.0
-616
-206
-28
-9
-3
-1.7
-0.4
0.0
0.0
0.0
0.2
0.3
0.5
0.7
0.3
16.1
11.3
17.5
25.5
12.3
-0.4
-0.1
0.0
0.0
0.0
23.5
25.4
27.2
30.0
31.1
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, 2009
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
9,648
10,138
10,440
9,539
8,194
48,094
20.1
21.1
21.7
19.8
17.0
100.0
14,150
33,628
61,157
101,199
306,666
95,281
-1,233
2,026
9,527
20,624
82,651
20,441
15,383
31,601
51,630
80,575
224,015
74,839
4,292
1,951
1,572
379
37
8.9
4.1
3.3
0.8
0.1
153,064
218,471
392,713
2,144,629
10,295,847
36,562
55,606
106,785
644,129
3,201,819
116,502
162,866
285,929
1,500,500
7,094,028
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.7
6.0
15.6
20.4
27.0
21.5
3.0
7.4
13.9
21.1
54.8
100.0
4.1
8.9
15.0
21.4
51.0
100.0
-1.2
2.1
10.1
20.0
68.9
100.0
23.9
25.5
27.2
30.0
31.1
14.3
9.3
13.5
17.7
8.3
13.9
8.8
12.5
15.8
7.3
16.0
11.0
17.1
24.8
12.0
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 0308-07).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711,
99.9% $1,730,730.
(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.
13-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0104
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
Conference Report
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 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
12.3
16.8
28.1
39.6
29.2
24.3
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.3
0.3
0.3
0.1
0.2
9.2
17.7
17.1
30.5
25.5
100.0
-45
-66
-110
-161
-126
-98
-77.1
-9.5
-4.3
-1.9
-0.2
-0.7
-0.1
-0.1
-0.1
-0.1
0.4
0.0
0.0
1.2
2.7
10.9
85.1
100.0
-0.5
-0.3
-0.3
-0.2
-0.1
-0.1
0.1
2.9
6.0
11.7
24.1
18.3
41.3
32.2
10.4
4.6
0.4
0.0
0.0
0.0
0.0
0.0
0.2
0.1
0.0
0.0
0.0
16.0
7.2
2.0
0.3
0.0
-180
-138
-41
-21
-2
-1.0
-0.5
-0.1
0.0
0.0
0.0
0.0
0.1
0.3
0.2
11.0
10.6
20.8
42.7
21.8
-0.2
-0.1
0.0
0.0
0.0
16.6
19.3
23.4
29.9
32.3
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, 2009
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
5,675
7,562
4,371
5,321
5,689
28,639
19.8
26.4
15.3
18.6
19.9
100.0
9,958
21,260
41,175
69,880
246,281
75,721
59
691
2,560
8,324
59,552
13,971
9,899
20,570
38,614
61,557
186,729
61,750
2,500
1,471
1,329
391
40
8.7
5.1
4.6
1.4
0.1
105,353
147,862
266,234
1,451,124
6,768,885
17,686
28,685
62,366
434,209
2,183,965
87,667
119,177
203,868
1,016,915
4,584,921
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
3.3
6.2
11.9
24.2
18.5
2.6
7.4
8.3
17.2
64.6
100.0
3.2
8.8
9.6
18.5
60.1
100.0
0.1
1.3
2.8
11.1
84.7
100.0
16.8
19.4
23.4
29.9
32.3
12.1
10.0
16.3
26.1
12.4
12.4
9.9
15.3
22.5
10.3
11.1
10.5
20.7
42.4
21.6
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 0308-07).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Conference Agreement, available at http://www.taxpolicycenter.org/taxtopics/conference_stimulus.cfm.
(1) Calendar year. Baseline is current law and the Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or veterans benefits. For a description of "The American
Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal models the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $400
($800 for joint filers) phased out at a rate of 2 percent of AGI exceeding $75,000 ($150,000 for joint filers). The Making Work Pay credit is reduced by the value of any Economic Recovery Payments.
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711,
99.9% $1,730,730.
(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.