23-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 T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile, 2009 1
Summary 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 ($)
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
92.8
98.4
99.6
98.9
93.7
96.4
0.0
0.0
0.0
0.0
0.0
0.0
4.7
2.7
1.8
1.2
0.9
1.4
14.8
17.2
17.9
17.2
32.6
100.0
-482
-667
-758
-874
-1,863
-849
-4.5
-2.4
-1.5
-1.0
-0.7
-1.1
0.2
8.2
15.2
18.2
24.6
19.9
95.1
94.8
88.3
96.5
99.3
0.0
0.0
0.0
0.0
0.0
0.9
0.6
0.6
1.3
1.7
8.5
3.8
5.0
15.2
9.3
-961
-899
-1,434
-17,177
-104,094
-0.7
-0.5
-0.4
-0.9
-1.2
20.7
22.3
24.6
28.6
30.2
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: 4.6
Proposal: 4.6
(1) Calendar year. Baseline is current law plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT
liabilty. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://waysandmeans.house.gov/media/pdf/111/arra.pdf. Proposal
includes 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). Economic Recovery Payments, which are a one-time payment of $250 to tax units receiving social security, SSI or
veterans benefits. The one-time payment is a reduction to any allowable Making Work Pay credit. The Earned Income Tax Credit percentage for families with three
of more qualifying children is increased to 45 percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for
single and head of houshold tax units. The Child Tax Credit refundability earnings threshold is reduced to $3,000.
The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are
increased to AGI $80,000 ($160,000 for joint filers), textbooks are made a qualifying expense and forty percent of the credit is made refundable. Up to $2,400 of
unemployment benefits are excluded from gross income. The AMT exemptions for 2009 are increased to $46,700 ($70,950 for joint filers) and personal credits are
made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increase in
limitation on expensing of certain depreciable business assets, and a 5 year carryback of 2008 and 2009 NOLswith exception for TARP recipients. The Home Buyers
Credit is equal to 10% of house value up to a maximum of $8,000 ($4,000 for couples filing separate) for first time homebuyers. Credit is phased out for AGI in
excess of $75,000 ($150,000 for couple filling jointly).
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
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
92.8
98.4
99.6
98.9
93.7
96.4
0.0
0.0
0.0
0.0
0.0
0.0
4.7
2.7
1.8
1.2
0.9
1.4
14.8
17.2
17.9
17.2
32.6
100.0
-482
-667
-758
-874
-1,863
-849
-96.2
-22.4
-8.7
-5.2
-2.6
-5.4
-0.8
-0.7
-0.4
0.0
1.9
0.0
0.0
3.4
10.6
17.9
68.0
100.0
-4.5
-2.4
-1.5
-1.0
-0.7
-1.1
0.2
8.2
15.2
18.2
24.6
19.9
95.1
94.8
88.3
96.5
99.3
0.0
0.0
0.0
0.0
0.0
0.9
0.6
0.6
1.3
1.7
8.5
3.8
5.0
15.2
9.3
-961
-899
-1,434
-17,177
-104,094
-3.3
-2.1
-1.7
-3.1
-3.7
0.3
0.4
0.6
0.6
0.2
14.0
10.3
16.6
27.1
13.6
-0.7
-0.5
-0.4
-0.9
-1.2
20.7
22.3
24.6
28.6
30.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 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
501
2,980
8,665
16,914
70,636
15,848
10,243
25,077
43,259
71,079
208,608
59,441
4.7
10.6
16.7
19.2
25.3
21.1
3.7
8.2
13.8
19.6
55.0
100.0
4.5
9.3
14.6
20.0
52.1
100.0
0.8
4.1
11.0
17.9
66.1
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
28,900
43,680
85,389
557,967
2,798,292
106,243
148,586
255,597
1,331,970
6,131,118
21.4
22.7
25.0
29.5
31.3
13.5
9.3
13.4
18.9
9.0
13.4
9.1
12.8
16.9
7.8
13.7
10.0
16.0
26.5
13.4
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: 4.6
Proposal: 4.6
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 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
92.0
98.1
99.3
99.5
94.4
96.4
0.0
0.0
0.0
0.0
0.0
0.0
6.0
2.7
1.8
1.3
0.9
1.4
15.1
15.2
16.4
17.9
35.2
100.0
-592
-624
-715
-803
-1,575
-849
-526.7
-28.9
-10.0
-5.6
-2.7
-5.4
-0.8
-0.7
-0.4
0.0
2.0
0.0
-0.7
2.1
8.3
17.2
73.0
100.0
-5.9
-2.5
-1.6
-1.1
-0.7
-1.1
-4.8
6.1
14.0
17.7
24.5
19.9
98.4
90.8
88.4
96.6
99.2
0.0
0.0
0.0
0.0
0.0
0.9
0.6
0.6
1.3
1.7
9.5
4.2
5.4
16.0
9.7
-847
-751
-1,229
-14,999
-91,930
-3.4
-2.0
-1.7
-3.1
-3.7
0.3
0.4
0.7
0.7
0.2
15.3
11.7
17.7
28.3
14.2
-0.7
-0.5
-0.4
-0.9
-1.2
20.9
22.4
24.4
28.5
30.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 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
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
112
2,156
7,144
14,373
59,335
15,848
9,946
23,105
38,929
62,399
176,022
59,441
1.1
8.5
15.5
18.7
25.2
21.1
2.9
6.9
11.9
19.3
59.3
100.0
3.6
8.0
12.7
19.9
56.1
100.0
0.2
2.8
8.8
17.2
71.0
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
24,976
37,405
72,412
482,430
2,460,625
90,578
126,017
219,748
1,158,161
5,402,325
21.6
22.9
24.8
29.4
31.3
14.6
10.4
14.5
19.8
9.4
14.5
10.2
13.8
17.7
8.2
15.0
11.3
17.1
27.6
14.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 4.6
Proposal: 4.6
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
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
90.3
97.5
99.0
99.4
92.6
95.2
0.0
0.0
0.0
0.0
0.0
0.0
4.9
2.4
1.9
1.4
1.0
1.7
17.9
17.2
18.6
17.8
28.2
100.0
-353
-414
-526
-597
-1,149
-546
-68.4
-20.0
-8.9
-5.2
-2.9
-6.1
-1.1
-0.8
-0.4
0.2
2.0
0.0
0.5
4.5
12.5
20.9
61.5
100.0
-4.6
-2.2
-1.6
-1.1
-0.8
-1.3
2.1
8.7
16.2
19.7
25.4
20.0
99.3
83.6
85.1
95.5
98.4
0.0
0.0
0.0
0.0
0.0
1.1
0.6
0.8
1.6
2.0
8.7
3.2
5.2
11.1
6.0
-673
-513
-1,170
-11,667
-71,515
-3.5
-1.8
-2.3
-3.4
-3.7
0.4
0.5
0.6
0.6
0.3
15.7
11.1
14.2
20.5
10.2
-0.8
-0.4
-0.6
-1.1
-1.3
22.6
23.8
24.3
30.5
33.4
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)
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
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
516
2,070
5,944
11,395
39,653
8,948
7,135
17,012
27,570
43,476
111,779
33,104
6.7
10.9
17.7
20.8
26.2
21.3
5.0
10.3
15.4
21.2
48.3
100.0
6.0
11.7
16.1
21.3
45.3
100.0
1.6
5.3
12.9
20.7
59.5
100.0
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
19,259
28,151
50,146
343,202
1,927,461
62,937
88,048
151,737
744,441
3,623,131
23.4
24.2
24.8
31.6
34.7
13.9
9.3
11.7
13.5
6.1
13.5
9.0
11.2
11.7
5.0
15.3
10.6
13.7
19.9
9.9
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
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
90.2
98.2
99.6
99.8
96.5
97.4
0.0
0.0
0.0
0.0
0.0
0.0
6.3
3.2
1.9
1.3
0.9
1.2
7.7
11.3
14.7
20.4
45.6
100.0
-836
-948
-963
-990
-1,810
-1,212
-731.4
-36.5
-11.5
-6.0
-2.6
-4.4
-0.4
-0.5
-0.4
-0.2
1.5
0.0
-0.3
0.9
5.3
14.9
79.2
100.0
-6.3
-2.9
-1.6
-1.1
-0.7
-1.0
-5.4
5.1
12.4
16.7
24.3
20.8
99.6
95.4
90.7
97.3
99.4
0.0
0.0
0.0
0.0
0.0
0.9
0.6
0.5
1.2
1.7
12.0
5.8
6.6
21.2
13.1
-989
-887
-1,261
-15,865
-96,882
-3.5
-2.1
-1.5
-3.0
-3.7
0.2
0.3
0.6
0.5
0.1
15.3
12.5
19.8
31.7
15.6
-0.7
-0.5
-0.4
-0.9
-1.1
20.2
22.0
24.4
28.1
29.5
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)
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
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
114
2,598
8,348
16,517
69,420
27,286
13,229
29,799
51,090
76,767
209,085
97,869
0.9
8.0
14.1
17.7
24.9
21.8
1.2
3.7
8.8
18.6
68.0
100.0
1.5
4.4
9.7
19.6
65.2
100.0
0.1
1.4
5.7
15.1
77.7
100.0
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
28,171
41,967
82,337
524,980
2,593,655
106,396
144,862
249,964
1,288,999
5,871,186
20.9
22.5
24.8
28.9
30.6
15.8
11.8
16.9
23.5
11.1
15.9
11.7
16.2
21.4
9.8
15.1
12.2
19.2
31.2
15.5
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
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
97.8
99.0
99.4
98.2
76.2
97.4
0.0
0.0
0.0
0.0
0.0
0.0
6.9
2.4
1.6
1.1
0.6
2.2
40.3
27.3
18.3
9.0
5.1
100.0
-955
-679
-673
-646
-803
-769
108.3
-39.2
-9.0
-4.4
-1.8
-13.9
-7.4
-2.9
1.6
3.1
5.4
0.0
-12.5
6.9
30.0
31.5
44.1
100.0
-7.4
-2.3
-1.4
-0.9
-0.5
-1.9
-14.2
3.6
13.8
18.6
24.1
11.8
78.1
69.5
73.2
90.0
98.9
0.0
0.0
0.0
0.0
0.0
0.4
0.3
0.5
1.2
1.6
1.5
0.4
1.0
2.2
1.3
-367
-310
-1,105
-12,760
-85,510
-1.5
-0.9
-1.7
-2.9
-3.6
2.0
0.9
1.2
1.4
0.6
16.1
6.5
9.4
12.1
5.8
-0.3
-0.2
-0.4
-0.8
-1.1
22.1
23.1
23.8
28.4
29.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile 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)
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
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
-882
1,733
7,490
14,696
44,027
5,521
13,834
27,859
41,793
60,888
135,400
34,830
-6.8
5.9
15.2
19.4
24.5
13.7
10.4
22.7
25.6
20.0
21.5
100.0
12.9
24.7
25.1
18.6
18.8
100.0
-5.2
9.7
28.4
28.4
38.6
100.0
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
24,693
34,967
66,933
440,867
2,410,860
85,274
114,914
209,562
1,069,392
5,359,677
22.5
23.3
24.2
29.2
31.0
8.6
3.3
4.7
5.0
2.3
7.7
3.0
4.1
4.1
1.8
14.0
5.7
8.2
10.7
5.2
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table - Tax Units with Children
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
95.8
99.6
99.8
99.5
91.6
97.4
0.0
0.0
0.0
0.0
0.0
0.0
7.7
3.2
1.8
1.2
0.7
1.5
21.0
18.7
18.3
17.6
24.1
100.0
-1,177
-998
-951
-996
-1,594
-1,126
96.5
-49.4
-10.3
-5.2
-2.0
-5.8
-1.4
-1.0
-0.5
0.1
2.8
0.0
-2.6
1.2
9.9
19.6
71.9
100.0
-8.3
-3.0
-1.6
-1.0
-0.5
-1.2
-16.9
3.0
13.6
17.9
25.2
19.3
95.4
87.1
85.5
95.8
99.2
0.0
0.0
0.0
0.0
0.0
0.8
0.3
0.4
1.1
1.6
7.4
2.0
3.0
11.7
7.7
-934
-563
-1,025
-16,744
-112,754
-2.8
-1.1
-1.0
-2.6
-3.5
0.5
0.5
0.9
0.9
0.3
15.9
11.1
18.0
26.9
12.9
-0.6
-0.3
-0.3
-0.8
-1.1
21.3
23.0
25.7
29.2
30.0
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)
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
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
-1,220
2,021
9,280
19,127
78,984
19,468
15,370
31,607
51,877
82,072
227,682
75,813
-8.6
6.0
15.2
18.9
25.8
20.4
3.0
7.4
13.9
21.1
54.8
100.0
4.1
8.8
14.9
21.5
51.2
100.0
-1.3
2.2
10.4
19.5
69.1
100.0
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
33,523
50,777
102,019
643,895
3,201,837
119,541
167,695
290,695
1,500,735
7,094,010
21.9
23.2
26.0
30.0
31.1
14.3
9.3
13.5
17.7
8.3
14.1
9.0
12.5
15.6
7.2
15.4
10.6
17.1
26.1
12.6
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).
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.
18-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0117
"The American Recovery and Reinvestment Tax Act of 2009"
Conference Report: Major Individual and Corporate Tax Provisions
Baseline: Current Law Plus AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table - Elderly 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
91.9
96.2
99.1
100.0
99.9
97.2
0.0
0.0
0.0
0.0
0.0
0.0
2.5
1.5
1.2
1.0
1.4
1.3
5.9
9.7
8.5
14.2
61.6
100.0
-245
-303
-459
-633
-2,566
-827
-108.1
-35.0
-16.6
-7.5
-4.4
-5.9
-0.4
-0.5
-0.3
-0.2
1.4
0.0
0.0
1.1
2.7
11.1
85.1
100.0
-2.5
-1.4
-1.1
-0.9
-1.0
-1.1
-0.2
2.7
5.6
11.2
22.8
17.3
100.0
99.7
99.9
100.0
100.0
0.0
0.0
0.0
0.0
0.0
1.0
1.1
1.2
1.8
2.1
9.6
7.9
13.6
30.5
16.1
-906
-1,279
-2,429
-18,505
-96,259
-5.2
-4.6
-4.1
-4.3
-4.4
0.1
0.2
0.4
0.8
0.4
11.0
10.5
20.3
43.3
22.1
-0.9
-0.9
-0.9
-1.3
-1.4
15.6
18.0
21.5
28.6
30.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile 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)
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
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
227
867
2,767
8,443
58,596
13,915
9,731
20,393
38,407
61,437
187,685
61,806
2.3
4.1
6.7
12.1
23.8
18.4
2.6
7.4
8.3
17.2
64.6
100.0
3.1
8.7
9.5
18.5
60.3
100.0
0.3
1.7
3.0
11.3
83.7
100.0
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
17,387
27,959
59,780
433,716
2,184,148
87,965
119,903
206,454
1,017,408
4,584,737
16.5
18.9
22.5
29.9
32.3
12.1
10.0
16.3
26.1
12.4
12.4
10.0
15.5
22.5
10.3
10.9
10.3
19.9
42.5
21.7
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 plus AMT exemptions increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liabilty. For description of proposals, see summary table.
(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.