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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
25.1
31.4
34.9
40.4
40.1
36.5
32.3
23.5
12.5
2.6
1.1
31.2
With Tax
Increase
0.0
0.8
1.0
1.3
0.5
0.3
0.1
0.2
26.8
84.8
91.2
2.7
Percent Change
in After-Tax
Income 4
2.8
1.7
1.0
0.7
0.6
0.5
0.3
0.2
-0.4
-3.0
-5.8
-0.7
Share of Total
Federal Tax
Change
-3.1
-8.2
-7.0
-5.3
-4.3
-7.4
-4.3
-8.0
9.1
26.8
111.9
100.0
1
Average
Federal Tax
Change ($)
-156
-268
-252
-248
-265
-256
-230
-262
932
17,476
138,298
482
Average Federal Tax Rate5
Change (%
Points)
-2.6
-1.6
-0.9
-0.6
-0.5
-0.4
-0.2
-0.2
0.3
2.3
4.2
0.5
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:
6.6
Proposal: 5.4
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for
inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC
credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the
$3,000 child tax credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (g) change the threshold for the 36percent 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; (j) limit value of itemized deductions
to 28 percent.
(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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
25.1
31.4
34.9
40.4
40.1
36.5
32.3
23.5
12.5
2.6
1.1
31.2
0.0
0.8
1.0
1.3
0.5
0.3
0.1
0.2
26.8
84.8
91.2
2.7
Percent Change
in After-Tax
Income 4
2.8
1.7
1.0
0.7
0.6
0.5
0.3
0.2
-0.4
-3.0
-5.8
-0.7
Share of Total
Federal Tax
Change
-3.1
-8.2
-7.0
-5.3
-4.3
-7.4
-4.3
-8.0
9.1
26.8
111.9
100.0
Average Federal Tax Change
Dollars
-156
-268
-252
-248
-265
-256
-230
-262
932
17,476
138,298
482
Percent
-43.6
-35.8
-11.5
-5.2
-3.5
-2.1
-1.2
-0.8
1.2
9.1
15.2
2.6
1
Share of Federal Taxes
Change (%
Points)
-0.1
-0.2
-0.2
-0.2
-0.2
-0.4
-0.3
-0.9
-0.3
0.5
2.4
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 Rate 5
Change (%
Points)
-2.6
-1.6
-0.9
-0.6
-0.5
-0.4
-0.2
-0.2
0.3
2.3
4.2
0.5
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)
357
747
2,198
4,742
7,567
12,242
18,959
33,511
77,629
193,001
911,059
18,538
Average AfterTax Income 4
(Dollars)
5,551
16,189
25,875
34,600
43,091
57,361
79,074
120,762
241,098
575,615
2,367,423
70,866
Average
Federal Tax
Rate 5
6.0
4.4
7.8
12.1
14.9
17.6
19.3
21.7
24.4
25.1
27.8
20.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
3.4
4.9
5.1
4.8
11.3
10.1
25.2
16.0
6.0
13.0
100.0
0.2
0.6
1.6
2.7
3.2
9.2
9.2
26.7
19.6
7.7
19.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 6.6
Proposal: 5.4
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions to 28 percent.
(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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
19.3
19.2
24.2
32.1
24.2
17.1
14.5
7.1
6.5
3.1
0.1
20.4
0.0
1.1
0.7
0.2
0.1
0.0
0.1
0.0
43.4
80.4
88.5
1.3
Percent Change
in After-Tax
Income 4
2.1
0.8
0.5
0.5
0.3
0.3
0.2
0.1
-0.6
-2.9
-5.8
-0.2
Share of Total
Federal Tax
Change
-20.3
-28.7
-25.7
-19.7
-12.9
-22.4
-10.6
-5.4
24.9
42.4
178.8
100.0
Average Federal Tax Change
Dollars
-113
-119
-130
-149
-138
-150
-147
-78
1,545
16,173
128,011
86
Percent
-21.7
-9.2
-4.3
-2.5
-1.5
-1.0
-0.7
-0.2
2.0
8.2
13.2
0.8
1
Share of Federal Taxes
Change (%
Points)
-0.2
-0.3
-0.3
-0.2
-0.2
-0.3
-0.2
-0.2
0.1
0.3
1.4
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 Rate 5
Change (%
Points)
-1.9
-0.7
-0.5
-0.4
-0.3
-0.2
-0.2
-0.1
0.5
2.1
4.0
0.2
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)
522
1,293
3,032
5,983
9,303
14,903
22,648
36,244
79,447
197,396
973,531
10,504
Average AfterTax Income 4
(Dollars)
5,392
15,537
24,908
33,207
41,280
54,008
74,104
113,332
241,626
557,357
2,216,839
40,819
Average
Federal Tax
Rate 5
8.8
7.7
10.9
15.3
18.4
21.6
23.4
24.2
24.7
26.2
30.5
20.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
2.0
7.9
10.4
9.3
8.2
17.1
11.3
16.4
8.2
3.1
6.5
100.0
0.8
2.6
4.9
6.5
7.1
18.3
13.4
20.4
10.5
4.2
11.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions to 28 percent.
(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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
19.8
37.6
44.6
44.8
49.1
53.3
42.3
28.1
13.6
2.6
1.3
35.3
0.0
0.0
0.4
3.3
1.6
0.7
0.1
0.0
23.4
85.2
91.4
5.1
Percent Change
in After-Tax
Income 4
2.5
1.9
1.4
1.0
0.8
0.5
0.3
0.3
-0.3
-3.1
-5.8
-1.1
Share of Total
Federal Tax
Change
-0.3
-1.3
-2.2
-1.9
-1.8
-3.5
-2.5
-7.4
6.6
22.6
91.8
100.0
Average Federal Tax Change
Dollars
-114
-316
-383
-354
-382
-315
-240
-317
805
17,691
137,358
1,288
Percent
-37.5
-55.9
-28.4
-11.9
-7.7
-3.4
-1.5
-1.0
1.0
9.2
15.5
3.9
1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.4
-1.4
-0.7
0.5
2.6
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 Rate 5
Change (%
Points)
-2.3
-1.8
-1.4
-0.9
-0.8
-0.5
-0.2
-0.2
0.3
2.3
4.2
0.8
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)
304
564
1,346
2,974
4,970
9,365
16,609
32,861
77,273
192,775
885,351
33,013
Average AfterTax Income 4
(Dollars)
4,636
16,878
26,968
36,565
45,823
61,214
82,331
123,316
240,862
578,753
2,356,551
119,706
Average
Federal Tax
Rate 5
6.2
3.2
4.8
7.5
9.8
13.3
16.8
21.0
24.3
25.0
27.3
21.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
1.6
2.1
2.4
7.2
9.2
30.9
21.2
7.9
17.0
100.0
0.0
0.1
0.3
0.6
0.9
4.0
6.7
29.9
24.6
9.6
23.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions to 28 percent.
(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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
60.1
63.4
54.6
53.6
64.4
49.4
36.6
16.4
9.0
2.3
0.2
53.4
0.2
0.3
2.6
1.7
0.2
0.0
0.0
0.0
34.6
92.6
96.6
1.2
Percent Change
in After-Tax
Income 4
5.8
3.8
1.7
1.0
0.9
0.7
0.6
0.1
-0.4
-2.7
-6.0
0.9
Share of Total
Federal Tax
Change
9.9
38.0
23.2
15.8
11.8
17.3
7.9
2.2
-1.7
-5.3
-19.3
100.0
Average Federal Tax Change
Dollars
-416
-674
-469
-356
-405
-401
-425
-160
863
15,670
135,750
-355
Percent
92.3
85.6
-80.7
-9.4
-5.7
-3.4
-2.2
-0.5
1.1
9.0
15.2
-5.0
1
Share of Federal Taxes
Change (%
Points)
-0.6
-2.1
-1.1
-0.4
-0.1
0.4
0.5
1.1
0.5
0.4
1.3
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 Rate 5
Change (%
Points)
-6.2
-4.0
-1.7
-0.9
-0.8
-0.6
-0.4
-0.1
0.3
2.1
4.3
-0.7
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)
-451
-788
581
3,803
7,092
11,777
19,532
33,070
77,757
174,978
895,707
7,144
Average AfterTax Income 4
(Dollars)
7,225
17,720
27,573
35,602
43,470
57,261
77,532
111,817
243,721
578,943
2,254,406
41,877
Average
Federal Tax
Rate 5
-6.7
-4.7
2.1
9.7
14.0
17.1
20.1
22.8
24.2
23.2
28.4
14.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
8.5
11.6
13.4
10.7
21.0
12.2
12.8
4.1
1.7
2.7
100.0
-0.5
-2.2
1.4
8.4
10.3
25.3
18.1
22.3
7.7
2.9
6.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions to 28 percent.
(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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
63.6
77.7
68.9
68.1
73.6
63.0
52.2
36.7
15.6
2.1
1.0
55.4
0.2
0.2
1.6
1.3
0.3
0.1
0.0
0.1
23.4
92.9
96.9
3.5
Percent Change
in After-Tax
Income 4
6.2
4.6
2.3
1.5
1.3
0.8
0.5
0.4
-0.3
-3.6
-6.5
-0.6
Share of Total
Federal Tax
Change
-4.6
-18.1
-14.4
-10.6
-8.7
-13.7
-8.7
-20.1
11.3
41.7
146.0
100.0
Average Federal Tax Change
Dollars
-447
-859
-658
-538
-571
-471
-396
-472
796
20,239
150,182
502
Percent
64.0
56.8
989.8
-16.7
-8.7
-4.3
-2.2
-1.4
1.0
9.9
16.1
2.1
1
Share of Federal Taxes
Change (%
Points)
-0.1
-0.4
-0.3
-0.3
-0.2
-0.4
-0.4
-1.0
-0.3
0.7
2.6
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 Rate 5
Change (%
Points)
-6.9
-5.0
-2.3
-1.4
-1.1
-0.7
-0.4
-0.3
0.3
2.6
4.6
0.4
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)
-699
-1,514
-66
3,219
6,541
11,032
17,846
33,439
79,631
204,812
932,000
23,668
Average AfterTax Income 4
(Dollars)
7,177
18,583
28,204
36,212
44,185
58,971
80,745
121,729
237,071
562,624
2,303,109
89,393
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
-10.8
-8.9
-0.2
8.2
12.9
15.8
18.1
21.6
25.1
26.7
28.8
20.9
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
2.2
3.5
4.0
3.8
9.6
9.9
29.1
18.9
6.5
12.6
100.0
-0.2
-0.7
0.0
1.3
2.1
6.8
8.3
30.2
23.9
9.0
19.2
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. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions to 28 percent.
(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 T10-0042
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
4.0
3.8
5.5
8.0
7.7
9.9
12.5
7.7
8.7
2.4
1.0
7.0
0.0
0.0
0.0
0.3
0.3
0.3
0.0
0.2
29.2
75.3
90.2
2.4
Percent Change
in After-Tax
Income 4
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.0
-0.4
-2.2
-5.2
-1.0
Share of Total
Federal Tax
Change
-0.1
-0.4
-0.5
-0.4
-0.3
-0.6
-0.6
-0.8
5.8
14.1
83.6
100.0
Average Federal Tax Change
Dollars
-13
-15
-18
-25
-29
-38
-53
-47
1,041
13,006
126,071
734
Percent
-6.3
-4.1
-2.1
-1.3
-1.0
-0.6
-0.4
-0.2
1.5
7.2
13.7
5.2
1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.3
-0.4
-1.1
-0.7
0.2
2.6
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 Rate 5
Change (%
Points)
-0.2
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
0.3
1.7
3.8
0.8
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)
201
357
877
1,921
2,804
6,172
12,746
25,916
68,777
179,595
923,643
14,239
Average AfterTax Income 4
(Dollars)
6,078
16,938
26,946
37,192
47,626
64,089
85,364
128,448
258,059
596,095
2,406,274
72,935
Average
Federal Tax
Rate 5
3.2
2.1
3.2
4.9
5.6
8.8
13.0
16.8
21.0
23.2
27.7
16.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
4.5
7.0
5.9
4.6
10.3
9.4
20.7
14.6
6.5
16.1
100.0
0.1
0.5
1.2
1.6
1.4
5.1
7.2
21.4
19.9
10.1
31.6
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. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax
credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions to 28 percent.
(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.