8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012
Summary Table
Cash Income Level
(thousands of 2009
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 Cut
25.3
57.6
78.5
87.8
91.7
96.7
98.7
99.1
97.5
66.0
38.1
79.0
With Tax
Increase
10.1
9.4
8.9
6.6
5.2
2.3
0.9
0.8
2.5
34.0
61.9
6.0
Percent Change
in After-Tax
Income 4
2.5
2.6
3.3
3.2
3.0
2.9
3.3
4.0
3.3
0.7
-0.8
2.7
1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.9
3.7
6.5
6.3
5.9
13.4
13.4
35.1
16.9
1.5
-3.6
100.0
-136
-381
-765
-984
-1,143
-1,483
-2,330
-4,268
-7,164
-3,676
17,181
-1,594
Average Federal Tax Rate5
Change (%
Points)
-2.4
-2.5
-3.0
-2.7
-2.5
-2.3
-2.6
-3.0
-2.4
-0.5
0.6
-2.1
Under the
Proposal
3.0
2.8
7.7
12.1
14.8
17.1
19.0
21.6
24.9
28.0
34.4
21.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4.
Number of AMT Taxpayers (millions). Baseline:
19.5
Proposal: 4.0
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for
married couples and allow it against the AMT; (b) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully
refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax credit refundability with a $3,000 refundability
threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to
$85,000, and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for
married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the
thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after
2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets
held for more than 5 years; (j) limit value of itemized deduction s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts
for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends
for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary
income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table
Cash Income Level
(thousands of 2009
2
dollars)
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 Cut
With Tax
Increase
25.3
57.6
78.5
87.8
91.7
96.7
98.7
99.1
97.5
66.0
38.1
79.0
10.1
9.4
8.9
6.6
5.2
2.3
0.9
0.8
2.5
34.0
61.9
6.0
Percent
Change in
After-Tax
4
Income
2.5
2.6
3.3
3.2
3.0
2.9
3.3
4.0
3.3
0.7
-0.8
2.7
Share of Total
Federal Tax
Change
0.9
3.7
6.5
6.3
5.9
13.4
13.4
35.1
16.9
1.5
-3.6
100.0
Average Federal Tax Change
Dollars
Percent
-136
-381
-765
-984
-1,143
-1,483
-2,330
-4,268
-7,164
-3,676
17,181
-1,594
-44.1
-46.4
-27.8
-18.4
-14.2
-11.9
-12.0
-12.3
-8.9
-1.8
1.6
-8.9
Share of Federal Taxes
Change (%
Points)
-0.1
-0.3
-0.4
-0.3
-0.2
-0.3
-0.3
-0.9
0.0
0.6
2.3
0.0
Under the
Proposal
0.1
0.4
1.7
2.8
3.5
9.8
9.7
24.6
17.1
8.1
22.3
100.0
Average Federal Tax Rate
Change (%
Points)
-2.4
-2.5
-3.0
-2.7
-2.5
-2.3
-2.6
-3.0
-2.4
-0.5
0.6
-2.1
5
Under the
Proposal
3.0
2.8
7.7
12.1
14.8
17.1
19.0
21.6
24.9
28.0
34.4
21.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
16,958
24,305
21,133
16,074
12,909
22,702
14,431
20,606
5,930
1,048
531
157,348
Percent of
Total
10.8
15.5
13.4
10.2
8.2
14.4
9.2
13.1
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,723
15,533
25,808
36,190
46,615
64,099
90,195
141,257
296,062
704,969
3,114,004
76,169
Average
Federal Tax
Burden
(Dollars)
309
822
2,757
5,357
8,055
12,465
19,425
34,702
80,820
201,075
1,053,607
17,826
Average After4
Tax Income
(Dollars)
5,414
14,711
23,051
30,832
38,560
51,634
70,770
106,555
215,243
503,895
2,060,398
58,343
Average
Federal Tax
Rate 5
5.4
5.3
10.7
14.8
17.3
19.5
21.5
24.6
27.3
28.5
33.8
23.4
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.2
4.6
4.9
5.0
12.1
10.9
24.3
14.7
6.2
13.8
100.0
1.0
3.9
5.3
5.4
5.4
12.8
11.1
23.9
13.9
5.8
11.9
100.0
0.2
0.7
2.1
3.1
3.7
10.1
10.0
25.5
17.1
7.5
19.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 19.5
Proposal: 4.0
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify
the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child
tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,0
and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction
and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single),
indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction
s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent
rate on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing
LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
18.4
54.9
76.0
91.3
96.5
97.9
98.1
97.6
91.9
55.6
36.2
69.5
10.0
10.3
11.1
5.2
2.7
1.5
1.5
1.9
8.0
44.4
63.8
7.4
Percent Change
in After-Tax
Income 4
1.7
1.5
2.1
1.9
1.9
2.2
2.9
3.7
4.1
2.1
-0.6
2.3
Share of Total
Federal Tax
Change
2.0
5.9
9.5
7.9
7.9
17.0
12.8
23.2
12.8
2.6
-1.6
100.0
Average Federal Tax Change
Dollars
Percent
-87
-214
-459
-566
-715
-1,054
-1,930
-3,723
-8,805
-10,197
11,797
-787
-18.0
-15.4
-12.3
-8.5
-7.5
-7.3
-8.4
-10.0
-10.1
-4.6
1.1
-7.8
Share of Federal Taxes
Change (%
Points)
-0.1
-0.3
-0.3
-0.1
0.0
0.1
-0.1
-0.4
-0.3
0.2
1.1
0.0
Under the
Proposal
0.8
2.7
5.7
7.2
8.3
18.5
11.8
17.7
9.6
4.5
12.9
100.0
Average Federal Tax Rate5
Change (%
Points)
-1.5
-1.4
-1.8
-1.6
-1.5
-1.7
-2.2
-2.7
-2.9
-1.5
0.4
-1.8
Under the
Proposal
7.0
7.7
12.7
16.9
18.9
21.3
23.6
24.4
26.0
30.2
37.1
21.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
Percent of Total
12,161
14,889
11,204
7,555
6,018
8,766
3,599
3,384
787
138
75
68,932
17.6
21.6
16.3
11.0
8.7
12.7
5.2
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,710
15,384
25,667
36,120
46,555
63,234
89,193
137,406
300,163
697,814
2,972,435
43,878
Average
Federal Tax
Burden
(Dollars)
484
1,391
3,718
6,658
9,528
14,546
22,933
37,216
86,955
220,611
1,090,072
10,053
Average AfterTax Income 4
(Dollars)
5,227
13,993
21,949
29,462
37,027
48,688
66,260
100,190
213,208
477,203
1,882,363
33,825
Average
Federal Tax
Rate 5
8.5
9.0
14.5
18.4
20.5
23.0
25.7
27.1
29.0
31.6
36.7
22.9
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.3
7.6
9.5
9.0
9.3
18.3
10.6
15.4
7.8
3.2
7.3
100.0
2.7
8.9
10.6
9.6
9.6
18.3
10.2
14.5
7.2
2.8
6.0
100.0
0.9
3.0
6.0
7.3
8.3
18.4
11.9
18.2
9.9
4.4
11.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax
credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,000, and
allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one
personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction s to
28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on
capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
22.1
44.6
68.8
72.8
80.4
94.8
98.9
99.4
98.6
68.2
38.7
85.4
17.5
15.5
10.7
14.1
11.6
3.7
0.8
0.6
1.4
31.8
61.3
6.3
Percent Change
in After-Tax
Income 4
2.9
2.7
4.1
4.0
3.7
3.1
3.4
4.1
3.3
0.6
-0.8
2.7
Share of Total
Federal Tax
Change
0.2
1.1
3.0
3.6
3.9
10.5
14.0
45.1
21.7
1.5
-4.6
100.0
Average Federal Tax Change
Dollars
Percent
-129
-419
-996
-1,317
-1,506
-1,694
-2,442
-4,459
-7,020
-2,803
16,725
-2,607
-51.5
-76.0
-55.4
-36.0
-25.5
-16.1
-13.7
-13.0
-8.8
-1.4
1.6
-8.5
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.3
-0.2
-0.5
-0.5
-1.5
-0.1
0.7
2.6
0.0
Under the
Proposal
0.0
0.0
0.2
0.6
1.0
5.0
8.1
27.9
20.8
9.9
26.2
100.0
Average Federal Tax Rate5
Change (%
Points)
-2.7
-2.6
-3.8
-3.6
-3.2
-2.6
-2.7
-3.1
-2.4
-0.4
0.5
-2.1
Under the
Proposal
2.6
0.8
3.1
6.5
9.4
13.5
16.9
20.9
24.7
27.7
33.9
22.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
Percent of Total
2,172
4,097
4,842
4,391
4,095
9,883
9,149
16,193
4,941
876
435
61,357
3.5
6.7
7.9
7.2
6.7
16.1
14.9
26.4
8.1
1.4
0.7
100.0
Average
Income
(Dollars)
4,766
16,031
25,959
36,302
46,760
65,241
90,792
142,545
295,420
706,519
3,075,014
126,020
Average
Federal Tax
Burden
(Dollars)
251
552
1,798
3,662
5,916
10,508
17,815
34,223
79,908
198,277
1,025,157
30,803
Average AfterTax Income 4
(Dollars)
4,515
15,479
24,161
32,640
40,844
54,734
72,977
108,322
215,512
508,242
2,049,857
95,217
Average
Federal Tax
Rate 5
5.3
3.4
6.9
10.1
12.7
16.1
19.6
24.0
27.1
28.1
33.3
24.4
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.1
0.9
1.6
2.1
2.5
8.3
10.7
29.9
18.9
8.0
17.3
100.0
0.2
1.1
2.0
2.5
2.9
9.3
11.4
30.0
18.2
7.6
15.3
100.0
0.0
0.1
0.5
0.9
1.3
5.5
8.6
29.3
20.9
9.2
23.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax
credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,000, and
allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one
personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction s to
28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on
capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
61.9
74.9
93.1
97.2
97.8
99.3
99.1
99.4
94.4
59.6
32.5
88.6
4.1
2.1
2.1
1.3
1.0
0.4
0.5
0.4
5.6
40.4
67.5
1.8
Percent Change
in After-Tax
Income 4
5.4
5.2
5.1
4.6
4.0
3.7
3.8
3.0
2.1
0.2
-1.1
4.0
Share of Total
Federal Tax
Change
2.9
12.5
17.6
16.1
11.3
19.7
10.8
7.7
2.0
0.1
-0.7
100.0
Average Federal Tax Change
Dollars
Percent
-390
-844
-1,259
-1,450
-1,569
-1,881
-2,628
-2,975
-4,553
-1,140
20,875
-1,384
75.8
114.0
-95.7
-32.1
-20.4
-15.2
-13.0
-8.9
-6.0
-0.6
2.1
-20.5
Share of Federal Taxes
Change (%
Points)
-0.9
-3.8
-3.6
-1.5
0.0
1.8
1.6
2.6
1.3
0.7
1.9
0.0
Under the
Proposal
-1.7
-6.1
0.2
8.8
11.4
28.4
18.6
20.2
8.2
3.3
8.6
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.9
-5.4
-4.9
-4.0
-3.4
-3.0
-3.0
-2.2
-1.6
-0.2
0.7
-3.3
Under the
Proposal
-13.6
-10.2
0.2
8.5
13.2
16.6
19.8
22.8
24.3
26.5
34.9
12.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
Percent of Total
2,483
5,029
4,757
3,767
2,449
3,559
1,389
877
150
24
11
24,547
10.1
20.5
19.4
15.4
10.0
14.5
5.7
3.6
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,647
15,579
25,971
36,157
46,569
63,082
89,214
132,993
294,130
686,382
2,985,055
41,760
Average
Federal Tax
Burden
(Dollars)
-514
-740
1,316
4,516
7,696
12,367
20,260
33,272
75,988
183,071
1,019,602
6,738
Average AfterTax Income 4
(Dollars)
7,161
16,319
24,655
31,641
38,873
50,716
68,953
99,721
218,142
503,311
1,965,454
35,022
Average
Federal Tax
Rate 5
-7.7
-4.8
5.1
12.5
16.5
19.6
22.7
25.0
25.8
26.7
34.2
16.1
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
1.6
7.6
12.1
13.3
11.1
21.9
12.1
11.4
4.3
1.6
3.2
100.0
2.1
9.6
13.6
13.9
11.1
21.0
11.1
10.2
3.8
1.4
2.5
100.0
-0.8
-2.3
3.8
10.3
11.4
26.6
17.0
17.7
6.9
2.6
6.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax
credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,000, and
allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one
personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction s to
28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on
capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
2
dollars)
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 Cut
With Tax
Increase
64.0
82.5
95.4
98.5
98.5
99.4
99.7
99.8
98.8
65.4
32.3
94.1
1.9
1.8
1.3
0.6
0.7
0.4
0.2
0.2
1.2
34.6
67.7
1.4
Percent
Change in
After-Tax
4
Income
6.1
6.0
6.8
6.2
5.5
4.4
4.4
4.7
3.3
0.4
-1.1
3.7
Share of Total
Federal Tax
Change
0.9
4.4
7.3
7.3
6.2
12.9
13.7
35.5
14.5
0.6
-3.3
100.0
Average Federal Tax Change
Dollars
Percent
-422
-1,029
-1,700
-1,974
-2,146
-2,309
-3,133
-5,069
-7,021
-1,931
21,302
-2,710
59.8
79.9
-205.6
-47.8
-29.3
-19.5
-16.4
-14.6
-8.7
-0.9
2.0
-12.0
Share of Federal Taxes
Change (%
Points)
-0.2
-0.7
-0.9
-0.7
-0.5
-0.7
-0.5
-0.9
0.8
1.1
3.2
0.0
Under the
Proposal
-0.3
-1.3
-0.5
1.1
2.1
7.3
9.6
28.4
21.0
9.4
23.3
100.0
Average Federal Tax Rate
Change (%
Points)
-6.8
-6.5
-6.6
-5.5
-4.6
-3.6
-3.5
-3.6
-2.4
-0.3
0.7
-2.8
5
Under the
Proposal
-18.0
-14.7
-3.4
6.0
11.1
14.9
17.6
20.8
25.2
29.5
35.4
20.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
Percent of
Total
2,968
5,639
5,683
4,891
3,849
7,425
5,841
9,319
2,750
441
206
49,155
6.0
11.5
11.6
10.0
7.8
15.1
11.9
19.0
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
6,252
15,769
25,918
36,161
46,701
64,368
90,740
142,137
293,742
705,334
3,105,769
95,419
Average
Federal Tax
Burden
(Dollars)
-706
-1,288
827
4,128
7,328
11,870
19,102
34,691
81,104
210,012
1,077,968
22,496
Average After4
Tax Income
(Dollars)
6,958
17,057
25,091
32,033
39,373
52,498
71,638
107,447
212,638
495,322
2,027,801
72,923
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-11.3
-8.2
3.2
11.4
15.7
18.4
21.1
24.4
27.6
29.8
34.7
23.6
0.4
1.9
3.1
3.8
3.8
10.2
11.3
28.2
17.2
6.6
13.7
100.0
0.6
2.7
4.0
4.4
4.2
10.9
11.7
27.9
16.3
6.1
11.7
100.0
-0.2
-0.7
0.4
1.8
2.6
8.0
10.1
29.2
20.2
8.4
20.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify
the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child
tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,0
and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction
and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single),
indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction
s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent
rate on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing
LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0032
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
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 Cut
With Tax
Increase
4.5
15.5
39.5
55.2
64.7
88.5
96.2
97.2
96.2
64.8
39.7
54.8
25.0
20.7
26.9
25.2
22.4
8.6
2.9
2.6
3.8
35.2
60.3
17.3
Percent
Change in
After-Tax
4
Income
0.2
0.3
0.8
0.8
1.8
2.1
2.8
4.0
4.3
1.6
-0.5
2.1
Share of Total
Federal Tax
Change
0.1
0.7
2.5
2.1
4.4
13.3
13.2
34.1
27.9
5.3
-3.5
100.0
Average Federal Tax Change
Dollars
Percent
-10
-44
-191
-278
-759
-1,187
-2,077
-4,497
-9,724
-8,412
10,340
-1,289
-5.0
-10.1
-14.6
-11.4
-19.6
-15.4
-14.9
-15.0
-12.2
-4.3
1.0
-8.5
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.2
-0.6
-0.5
-1.4
-0.8
0.5
3.1
0.0
Under the
Proposal
0.1
0.6
1.3
1.5
1.7
6.8
7.0
18.0
18.6
11.0
33.4
100.0
Average Federal Tax Rate
Change (%
Points)
-0.2
-0.3
-0.8
-0.8
-1.6
-1.8
-2.3
-3.2
-3.2
-1.2
0.3
-1.7
5
Under the
Proposal
3.0
2.5
4.4
6.0
6.7
10.1
13.3
18.0
23.0
26.6
34.6
18.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
Percent of
Total
2,305
6,471
5,084
2,999
2,259
4,405
2,504
2,986
1,128
245
132
30,543
7.6
21.2
16.7
9.8
7.4
14.4
8.2
9.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,366
15,655
25,560
36,054
46,537
64,489
89,136
141,589
304,121
709,954
3,095,895
75,737
Average
Federal Tax
Burden
(Dollars)
201
432
1,310
2,434
3,873
7,688
13,946
29,985
79,745
197,508
1,061,106
15,163
Average After4
Tax Income
(Dollars)
6,166
15,223
24,250
33,620
42,664
56,802
75,190
111,605
224,376
512,446
2,034,789
60,574
Average
Federal Tax
Rate 5
3.2
2.8
5.1
6.8
8.3
11.9
15.7
21.2
26.2
27.8
34.3
20.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.6
4.7
4.5
12.3
9.7
18.3
14.8
7.5
17.7
100.0
0.8
5.3
6.7
5.5
5.2
13.5
10.2
18.0
13.7
6.8
14.5
100.0
0.1
0.6
1.4
1.6
1.9
7.3
7.5
19.3
19.4
10.5
30.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify
the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child
tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,0
and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction
and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single),
indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deducti
to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate
on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing
LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) 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.