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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
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
25.9
55.5
70.3
84.4
90.1
95.3
98.9
99.3
98.5
73.1
50.3
78.3
With Tax
Increase
0.0
0.9
0.5
0.7
0.3
0.1
0.1
0.1
1.1
26.2
49.3
0.8
Percent
Change in
After-Tax
Income 4
2.9
2.5
2.9
3.0
3.0
3.0
3.8
4.4
4.0
1.1
0.0
3.1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.7
2.8
4.7
5.0
4.7
11.2
12.3
35.8
20.7
2.1
-0.1
100.0
-161
-398
-735
-1,009
-1,264
-1,703
-2,878
-5,097
-9,320
-6,089
686
-2,108
Average Federal Tax Rate5
Change (%
Points)
-2.7
-2.4
-2.6
-2.6
-2.5
-2.5
-2.9
-3.3
-2.9
-0.8
0.0
-2.4
Under the
Proposal
3.4
2.8
6.9
11.4
14.4
17.2
19.1
21.6
24.7
27.4
32.0
21.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4.
Number of AMT Taxpayers (millions). Baseline:
31.2
Proposal: 5.4
(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 phaseout 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.
(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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail 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
With Tax
Increase
25.9
55.5
70.3
84.4
90.1
95.3
98.9
99.3
98.5
73.1
50.3
78.3
0.0
0.9
0.5
0.7
0.3
0.1
0.1
0.1
1.1
26.2
49.3
0.8
Percent Change
in After-Tax
Income 4
2.9
2.5
2.9
3.0
3.0
3.0
3.8
4.4
4.0
1.1
0.0
3.1
Share of Total
Federal Tax
Change
0.7
2.8
4.7
5.0
4.7
11.2
12.3
35.8
20.7
2.1
-0.1
100.0
Average Federal Tax Change
Dollars
Percent
-161
-398
-735
-1,009
-1,264
-1,703
-2,878
-5,097
-9,320
-6,089
686
-2,108
-44.5
-45.4
-27.4
-18.3
-14.8
-12.4
-13.3
-13.3
-10.6
-2.8
0.1
-10.0
Share of Federal Taxes
Change (%
Points)
-0.1
-0.2
-0.3
-0.3
-0.2
-0.3
-0.3
-1.0
-0.1
0.6
2.2
0.0
Under the
Proposal
0.1
0.4
1.4
2.5
3.0
8.8
8.9
25.9
19.4
8.2
21.5
100.0
Average Federal Tax Rate5
Change (%
Points)
-2.7
-2.4
-2.6
-2.6
-2.5
-2.5
-2.9
-3.3
-2.9
-0.8
0.0
-2.4
Under the
Proposal
3.4
2.8
6.9
11.4
14.4
17.2
19.1
21.6
24.7
27.4
32.0
21.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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)
16,215
24,797
22,579
17,421
13,134
23,358
15,172
24,845
7,879
1,244
656
168,027
Percent of Total
9.7
14.8
13.4
10.4
7.8
13.9
9.0
14.8
4.7
0.7
0.4
100.0
Average
Income
(Dollars)
5,908
16,936
28,073
39,342
50,658
69,602
98,034
154,274
318,727
768,616
3,278,481
89,404
Average
Federal Tax
Burden
(Dollars)
363
878
2,680
5,502
8,566
13,689
21,608
38,347
87,880
216,566
1,048,670
21,128
Average AfterTax Income 4
(Dollars)
5,546
16,058
25,393
33,839
42,092
55,914
76,426
115,927
230,847
552,050
2,229,811
68,276
Average
Federal Tax
Rate 5
6.1
5.2
9.6
14.0
16.9
19.7
22.0
24.9
27.6
28.2
32.0
23.6
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.6
2.8
4.2
4.6
4.4
10.8
9.9
25.5
16.7
6.4
14.3
100.0
0.8
3.5
5.0
5.1
4.8
11.4
10.1
25.1
15.9
6.0
12.7
100.0
0.2
0.6
1.7
2.7
3.2
9.0
9.2
26.8
19.5
7.6
19.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 31.2
Proposal: 5.4
(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.
(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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
20.0
52.4
63.7
84.0
95.3
98.4
98.9
98.9
96.1
75.2
50.0
68.4
0.0
1.2
0.3
0.2
0.1
0.1
0.0
0.0
3.3
24.2
49.3
0.5
Percent Change
in After-Tax
Income 4
2.1
1.6
1.8
1.8
2.1
2.4
3.6
4.1
4.8
2.8
0.2
2.7
Share of Total
Federal Tax
Change
1.7
4.7
7.0
6.5
6.5
15.4
15.3
25.0
14.3
3.2
0.5
100.0
Average Federal Tax Change
Dollars
Percent
-114
-241
-431
-602
-853
-1,266
-2,606
-4,475
-10,968
-14,926
-4,571
-1,061
-21.8
-17.0
-12.9
-9.4
-8.5
-7.9
-10.4
-11.0
-11.9
-6.5
-0.4
-9.1
Share of Federal Taxes
Change (%
Points)
-0.1
-0.2
-0.2
0.0
0.1
0.2
-0.2
-0.4
-0.3
0.1
1.1
0.0
Under the
Proposal
0.6
2.3
4.7
6.3
7.0
18.0
13.2
20.2
10.6
4.6
12.5
100.0
Average Federal Tax Rate5
Change (%
Points)
-1.9
-1.4
-1.5
-1.5
-1.7
-1.8
-2.7
-3.0
-3.4
-2.0
-0.1
-2.1
Under the
Proposal
6.9
7.0
10.4
14.9
18.1
21.4
23.3
24.2
25.2
28.3
34.5
20.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
11,695
15,726
12,959
8,637
6,106
9,784
4,704
4,486
1,049
171
91
75,772
15.4
20.8
17.1
11.4
8.1
12.9
6.2
5.9
1.4
0.2
0.1
100.0
Average
Income
(Dollars)
5,914
16,831
27,940
39,191
50,583
68,911
96,752
149,576
321,073
754,752
3,190,369
51,323
Average
Federal Tax
Burden
(Dollars)
523
1,415
3,333
6,436
10,018
16,020
25,107
40,640
91,961
228,495
1,106,113
11,651
Average AfterTax Income 4
(Dollars)
5,391
15,415
24,607
32,755
40,565
52,891
71,645
108,935
229,112
526,257
2,084,256
39,672
Average
Federal Tax
Rate 5
8.8
8.4
11.9
16.4
19.8
23.3
26.0
27.2
28.6
30.3
34.7
22.7
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
1.8
6.8
9.3
8.7
7.9
17.3
11.7
17.3
8.7
3.3
7.5
100.0
2.1
8.1
10.6
9.4
8.2
17.2
11.2
16.3
8.0
3.0
6.3
100.0
0.7
2.5
4.9
6.3
6.9
17.8
13.4
20.7
10.9
4.4
11.4
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.
(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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
21.1
43.4
68.3
72.9
76.3
90.3
98.8
99.5
99.1
73.1
50.8
85.8
0.0
0.1
0.6
2.6
0.7
0.2
0.1
0.1
0.6
26.1
48.9
1.2
Percent Change
in After-Tax
Income 4
3.1
2.7
3.9
3.7
3.3
3.0
3.7
4.5
4.0
0.9
0.0
3.1
Share of Total
Federal Tax
Change
0.1
0.7
2.1
2.5
2.6
7.2
11.1
44.8
26.9
2.2
-0.2
100.0
Average Federal Tax Change
Dollars
Percent
-142
-445
-1,031
-1,333
-1,487
-1,817
-2,971
-5,338
-9,185
-4,779
856
-3,583
-42.8
-64.2
-51.7
-33.7
-24.5
-16.7
-15.4
-14.1
-10.5
-2.2
0.1
-9.5
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.2
-0.2
-0.3
-0.4
-1.5
-0.3
0.8
2.5
0.0
Under the
Proposal
0.0
0.0
0.2
0.5
0.8
3.7
6.4
28.5
23.9
10.1
25.7
100.0
Average Federal Tax Rate5
Change (%
Points)
-2.9
-2.6
-3.6
-3.4
-2.9
-2.6
-3.0
-3.4
-2.9
-0.6
0.0
-2.4
Under the
Proposal
3.9
1.4
3.4
6.6
9.0
12.8
16.5
20.8
24.5
27.3
31.6
22.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
2,095
3,373
4,561
4,231
3,895
8,857
8,368
18,811
6,581
1,028
539
62,623
3.4
5.4
7.3
6.8
6.2
14.1
13.4
30.0
10.5
1.6
0.9
100.0
Average
Income
(Dollars)
4,940
17,442
28,314
39,539
50,793
70,578
98,940
156,176
318,135
771,528
3,241,902
152,719
Average
Federal Tax
Burden
(Dollars)
332
694
1,995
3,952
6,075
10,866
19,340
37,881
87,262
215,245
1,021,854
37,884
Average AfterTax Income 4
(Dollars)
4,608
16,749
26,319
35,587
44,718
59,712
79,600
118,295
230,873
556,283
2,220,048
114,835
Average
Federal Tax
Rate 5
6.7
4.0
7.1
10.0
12.0
15.4
19.6
24.3
27.4
27.9
31.5
24.8
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.1
0.6
1.4
1.8
2.1
6.5
8.7
30.7
21.9
8.3
18.3
100.0
0.1
0.8
1.7
2.1
2.4
7.4
9.3
30.9
21.1
8.0
16.6
100.0
0.0
0.1
0.4
0.7
1.0
4.1
6.8
30.0
24.2
9.3
23.2
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.
(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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
60.3
70.4
88.8
95.8
97.0
98.4
99.7
98.7
94.3
71.4
41.5
87.2
0.2
0.3
1.1
0.1
0.2
0.0
0.0
0.0
5.3
28.4
58.3
0.4
Percent Change
in After-Tax
Income 4
5.9
4.7
4.8
4.4
4.4
4.3
4.2
3.6
2.6
0.6
-0.3
4.1
Share of Total
Federal Tax
Change
2.2
9.9
13.5
14.4
11.4
22.2
12.4
11.3
2.7
0.3
-0.2
100.0
Average Federal Tax Change
Dollars
Percent
-424
-821
-1,274
-1,521
-1,834
-2,401
-3,119
-3,916
-6,206
-3,552
5,638
-1,663
95.5
128.3
-91.9
-30.6
-21.5
-17.4
-14.0
-10.6
-7.3
-1.8
0.6
-19.7
Share of Federal Taxes
Change (%
Points)
-0.6
-2.8
-2.6
-1.3
-0.2
0.7
1.2
2.4
1.1
0.6
1.5
0.0
Under the
Proposal
-1.1
-4.3
0.3
8.0
10.2
25.7
18.6
23.3
8.2
3.4
7.7
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.3
-4.9
-4.5
-3.9
-3.6
-3.5
-3.2
-2.7
-1.9
-0.5
0.2
-3.4
Under the
Proposal
-12.8
-8.6
0.4
8.8
13.2
16.5
19.7
22.7
24.5
25.3
32.7
13.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
2,304
5,449
4,772
4,273
2,807
4,174
1,797
1,307
193
33
14
27,175
8.5
20.1
17.6
15.7
10.3
15.4
6.6
4.8
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
6,774
16,933
28,154
39,404
50,563
69,037
97,064
144,888
321,478
753,921
3,150,113
49,021
Average
Federal Tax
Burden
(Dollars)
-444
-640
1,386
4,967
8,521
13,776
22,226
36,826
84,827
194,200
1,025,820
8,451
Average AfterTax Income 4
(Dollars)
7,218
17,573
26,768
34,437
42,042
55,261
74,837
108,062
236,651
559,721
2,124,293
40,570
Average
Federal Tax
Rate 5
-6.6
-3.8
4.9
12.6
16.9
20.0
22.9
25.4
26.4
25.8
32.6
17.2
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
1.2
6.9
10.1
12.6
10.7
21.6
13.1
14.2
4.7
1.8
3.2
100.0
1.5
8.7
11.6
13.4
10.7
20.9
12.2
12.8
4.1
1.7
2.6
100.0
-0.5
-1.5
2.9
9.2
10.4
25.0
17.4
21.0
7.1
2.8
6.1
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 it
(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.
(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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Tax Units with Children
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
63.8
82.4
94.4
98.2
98.8
99.3
99.8
99.9
99.0
68.0
41.5
94.4
0.2
0.2
0.4
0.1
0.1
0.0
0.0
0.0
0.8
31.9
58.3
0.8
Percent Change
in After-Tax
Income 4
6.6
5.8
6.4
5.8
5.4
4.8
5.0
5.2
4.0
0.6
-0.4
4.1
Share of Total
Federal Tax
Change
0.7
3.3
5.5
5.7
5.1
11.4
12.1
37.4
18.9
0.9
-1.1
100.0
Average Federal Tax Change
Dollars
Percent
-470
-1,063
-1,728
-1,998
-2,289
-2,706
-3,832
-6,064
-9,182
-3,010
7,600
-3,457
69.6
81.2
-172.1
-42.7
-27.7
-20.4
-18.0
-15.5
-10.3
-1.3
0.7
-12.5
Share of Federal Taxes
Change (%
Points)
-0.1
-0.5
-0.7
-0.6
-0.4
-0.6
-0.5
-1.0
0.6
1.1
2.9
0.0
Under the
Proposal
-0.3
-1.0
-0.3
1.1
1.9
6.4
7.9
29.1
23.7
9.6
21.8
100.0
Average Federal Tax Rate5
Change (%
Points)
-7.3
-6.2
-6.1
-5.1
-4.5
-3.9
-3.9
-3.9
-2.9
-0.4
0.2
-3.1
Under the
Proposal
-17.7
-13.9
-2.6
6.8
11.8
15.1
17.7
21.3
25.4
29.3
33.5
21.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
2,635
5,388
5,564
5,003
3,876
7,421
5,569
10,848
3,616
526
248
50,838
5.2
10.6
11.0
9.8
7.6
14.6
11.0
21.3
7.1
1.0
0.5
100.0
Average
Income
(Dollars)
6,478
17,070
28,138
39,431
50,726
70,003
98,591
155,168
316,702
767,436
3,235,110
113,062
Average
Federal Tax
Burden
(Dollars)
-676
-1,309
1,004
4,679
8,259
13,267
21,282
39,031
89,608
228,061
1,074,582
27,626
Average AfterTax Income 4
(Dollars)
7,154
18,379
27,134
34,752
42,467
56,736
77,309
116,137
227,094
539,375
2,160,527
85,435
Average
Federal Tax
Rate 5
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-10.4
-7.7
3.6
11.9
16.3
19.0
21.6
25.2
28.3
29.7
33.2
24.4
0.3
1.6
2.7
3.4
3.4
9.0
9.6
29.3
19.9
7.0
14.0
100.0
0.4
2.3
3.5
4.0
3.8
9.7
9.9
29.0
18.9
6.5
12.3
100.0
-0.1
-0.5
0.4
1.7
2.3
7.0
8.4
30.2
23.1
8.5
19.0
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 $85,000, 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.
(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 T10-0040
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Elderly 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
4.2
14.5
29.2
51.0
61.5
80.0
97.1
98.3
98.1
81.7
59.7
52.6
0.0
0.1
0.1
0.4
0.2
0.1
0.0
0.1
0.8
15.7
39.9
0.5
Percent Change
in After-Tax
Income 4
0.3
0.5
0.6
1.2
2.0
2.1
4.0
4.4
5.3
2.5
0.6
2.7
Share of Total
Federal Tax
Change
0.1
0.8
1.7
2.6
3.4
8.0
13.8
33.2
27.4
6.0
3.1
100.0
Average Federal Tax Change
Dollars
Percent
-16
-84
-167
-426
-919
-1,319
-3,302
-5,435
-12,842
-14,395
-12,398
-1,929
-7.7
-19.7
-16.3
-18.4
-24.9
-17.7
-20.7
-17.4
-15.5
-7.0
-1.2
-11.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.2
-0.4
-0.8
-1.5
-0.9
0.5
3.5
0.0
Under the
Proposal
0.1
0.4
1.1
1.5
1.3
4.8
6.8
20.4
19.2
10.3
34.1
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.3
-0.5
-0.6
-1.1
-1.8
-1.9
-3.4
-3.5
-3.9
-1.9
-0.4
-2.2
Under the
Proposal
3.0
2.0
3.1
4.9
5.5
8.7
12.9
16.8
21.4
24.8
31.5
17.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
2,117
6,783
6,705
4,064
2,488
4,128
2,835
4,144
1,447
281
171
35,193
6.0
19.3
19.1
11.6
7.1
11.7
8.1
11.8
4.1
0.8
0.5
100.0
Average
Income
(Dollars)
6,279
17,295
27,823
39,113
50,430
70,261
98,110
154,364
326,836
775,689
3,329,917
87,173
Average
Federal Tax
Burden
(Dollars)
204
426
1,025
2,322
3,694
7,453
15,995
31,304
82,660
206,996
1,062,111
16,901
Average AfterTax Income 4
(Dollars)
6,075
16,869
26,798
36,791
46,736
62,808
82,114
123,059
244,176
568,693
2,267,806
70,272
Average
Federal Tax
Rate 5
3.3
2.5
3.7
5.9
7.3
10.6
16.3
20.3
25.3
26.7
31.9
19.4
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.4
3.8
6.1
5.2
4.1
9.5
9.1
20.9
15.4
7.1
18.6
100.0
0.5
4.6
7.3
6.1
4.7
10.5
9.4
20.6
14.3
6.5
15.7
100.0
0.1
0.5
1.2
1.6
1.6
5.2
7.6
21.8
20.1
9.8
30.6
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 $85,000, 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.
(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.