21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Level, 2012 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
With Tax
Increase
0.4
9.9
22.9
27.3
26.1
31.4
35.9
31.7
5.2
3.2
2.1
21.8
Percent Change
in After-Tax
Income 4
-0.1
-0.3
-1.0
-0.9
-0.6
-0.5
-0.4
-0.2
0.0
0.0
0.0
-0.3
Share of Total
Federal Tax
Change
0.2
3.8
16.6
16.0
10.9
19.6
14.7
17.4
0.4
0.1
0.0
100.0
Average
Federal Tax
Change ($)
3
45
229
290
246
251
295
245
17
13
4
185
Average Federal Tax Rate 5
Change (%
Points)
0.1
0.3
0.9
0.8
0.5
0.4
0.3
0.2
0.0
0.0
0.0
0.2
Under the
Proposal
5.4
4.9
9.7
13.8
16.3
18.3
19.9
22.3
25.3
27.8
33.7
22.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.7
Proposal: 3.7
** This table is part of a series of tables showing the distributional effects of moving incrementally from current policy to current law. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Policy to Current Law” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=367
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at
current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal
exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10 percent for tax units in 15 percent
bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of
the student loan interest deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Level, 2012 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
9.9
22.9
27.3
26.1
31.4
35.9
31.7
5.2
3.2
2.1
21.8
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
-0.1
-0.3
-1.0
-0.9
-0.6
-0.5
-0.4
-0.2
0.0
0.0
0.0
-0.3
0.2
3.8
16.6
16.0
10.9
19.6
14.7
17.4
0.4
0.1
0.0
100.0
Average Federal Tax Change
Dollars
3
45
229
290
246
251
295
245
17
13
4
185
Percent
1.1
6.4
10.0
6.2
3.4
2.2
1.7
0.8
0.0
0.0
0.0
1.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.2
0.1
0.1
0.1
0.1
-0.1
-0.2
-0.1
-0.2
0.0
Under the
Proposal
0.2
0.7
2.0
3.0
3.7
10.1
9.8
24.6
16.9
7.8
21.1
100.0
Average Federal Tax Rate5
Change (%
Points)
0.1
0.3
0.9
0.8
0.5
0.4
0.3
0.2
0.0
0.0
0.0
0.2
Under the
Proposal
5.4
4.9
9.7
13.8
16.3
18.3
19.9
22.3
25.3
27.8
33.7
22.0
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)
305
710
2,283
4,700
7,332
11,448
17,693
31,249
74,971
195,993
1,048,644
16,589
Average AfterTax Income 4
(Dollars)
5,418
14,823
23,524
31,489
39,283
52,651
72,502
110,008
221,091
508,976
2,065,360
59,580
Average
Federal Tax
Rate 5
5.3
4.6
8.9
13.0
15.7
17.9
19.6
22.1
25.3
27.8
33.7
21.8
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
3.8
5.3
5.4
5.4
12.8
11.2
24.2
14.0
5.7
11.7
100.0
0.2
0.7
1.9
2.9
3.6
10.0
9.8
24.7
17.0
7.9
21.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.7
Proposal: 3.7
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.6
3.2
2.6
2.0
10.7
5.3
1.0
0.1
0.1
0.0
3.1
Percent Change
in After-Tax
Income 4
0.0
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.5
11.1
34.5
17.5
9.6
19.5
5.7
1.4
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
6
26
20
14
19
14
4
0
0
0
12
Percent
0.1
0.5
0.8
0.3
0.2
0.1
0.1
0.0
0.0
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.9
2.9
5.8
7.2
8.3
18.4
11.8
17.9
9.9
4.5
12.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
8.5
8.5
13.5
17.6
19.8
22.1
24.4
25.6
27.9
31.2
36.6
22.0
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)
483
1,295
3,433
6,336
9,191
13,929
21,741
35,102
83,874
218,009
1,087,577
9,633
Average AfterTax Income 4
(Dollars)
5,227
14,089
22,234
29,784
37,364
49,305
67,452
102,304
216,289
479,804
1,884,858
34,244
Average
Federal Tax
Rate 5
8.5
8.4
13.4
17.5
19.7
22.0
24.4
25.6
27.9
31.2
36.6
22.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
9.5
9.5
18.3
10.3
14.7
7.2
2.8
6.0
100.0
0.9
2.9
5.8
7.2
8.3
18.4
11.8
17.9
9.9
4.5
12.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.5
13.1
25.3
32.1
37.2
38.8
45.7
39.0
6.0
3.4
2.4
31.7
Percent Change
in After-Tax
Income 4
-0.4
-0.4
-1.2
-1.3
-1.0
-0.7
-0.5
-0.3
0.0
0.0
0.0
-0.3
Share of Total
Federal Tax
Change
0.2
1.6
8.2
10.5
9.4
21.3
20.3
27.6
0.6
0.1
0.0
100.0
Average Federal Tax Change
Dollars
17
68
303
425
408
384
396
304
20
13
5
291
Percent
7.6
15.4
25.5
15.4
8.3
4.1
2.5
1.0
0.0
0.0
0.0
1.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.1
0.2
0.1
0.0
-0.2
-0.1
-0.3
0.0
Under the
Proposal
0.0
0.1
0.4
0.8
1.2
5.4
8.5
28.2
20.6
9.6
25.1
100.0
Average Federal Tax Rate5
Change (%
Points)
0.4
0.4
1.2
1.2
0.9
0.6
0.4
0.2
0.0
0.0
0.0
0.2
Under the
Proposal
5.2
3.2
5.8
8.8
11.4
14.9
18.0
21.6
24.9
27.3
33.2
22.9
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)
228
441
1,190
2,765
4,905
9,317
15,942
30,447
73,518
192,704
1,019,645
28,513
Average AfterTax Income 4
(Dollars)
4,538
15,590
24,769
33,537
41,854
55,924
74,850
112,099
221,903
513,815
2,055,369
97,507
Average
Federal Tax
Rate 5
4.8
2.8
4.6
7.6
10.5
14.3
17.6
21.4
24.9
27.3
33.2
22.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.9
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
9.2
11.5
30.3
18.3
7.5
15.0
100.0
0.0
0.1
0.3
0.7
1.2
5.3
8.3
28.2
20.8
9.7
25.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
32.0
67.8
71.8
67.5
63.0
55.6
20.7
8.6
14.5
5.6
50.7
Percent Change
in After-Tax
Income 4
-0.1
-0.9
-2.5
-2.1
-1.4
-0.9
-0.6
-0.1
0.0
0.0
0.0
-1.2
Share of Total
Federal Tax
Change
0.1
7.2
30.2
25.7
13.5
16.5
5.6
1.1
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
6
145
640
688
555
467
407
129
23
91
10
411
Percent
-1.1
-16.3
118.6
19.8
8.4
4.3
2.2
0.4
0.0
0.1
0.0
7.0
Share of Federal Taxes
Change (%
Points)
0.1
0.7
1.9
1.1
0.2
-0.7
-0.8
-1.2
-0.5
-0.2
-0.5
0.0
Under the
Proposal
-0.8
-2.4
3.7
10.2
11.4
26.5
16.8
17.6
7.1
2.8
7.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.1
0.9
2.5
1.9
1.2
0.7
0.5
0.1
0.0
0.0
0.0
1.0
Under the
Proposal
-7.7
-4.8
4.5
11.5
15.3
18.2
20.8
23.1
24.7
26.2
34.1
15.0
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)
-520
-890
540
3,470
6,571
10,981
18,168
30,609
72,657
180,005
1,016,338
5,844
Average AfterTax Income 4
(Dollars)
7,167
16,469
25,432
32,687
39,998
52,102
71,046
102,385
221,473
506,377
1,968,718
35,916
Average
Federal Tax
Rate 5
-7.8
-5.7
2.1
9.6
14.1
17.4
20.4
23.0
24.7
26.2
34.1
14.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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
2.0
9.4
13.7
14.0
11.1
21.0
11.2
10.2
3.8
1.4
2.4
100.0
-0.9
-3.1
1.8
9.1
11.2
27.2
17.6
18.7
7.6
3.0
7.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Level, 2012 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.2
38.8
79.0
84.5
83.1
82.6
80.9
62.5
10.8
7.4
3.7
63.3
Percent Change
in After-Tax
Income 4
-0.3
-1.1
-3.0
-2.7
-1.9
-1.4
-1.0
-0.5
0.0
0.0
0.0
-0.8
Share of Total
Federal Tax
Change
0.2
3.7
16.2
15.9
10.9
19.7
15.0
17.6
0.4
0.1
0.0
100.0
Average Federal Tax Change
Dollars
17
182
794
908
790
740
718
527
37
30
10
567
Percent
-2.4
-12.2
-405.7
32.8
13.5
7.2
4.3
1.7
0.1
0.0
0.0
2.8
Share of Federal Taxes
Change (%
Points)
0.0
0.1
0.4
0.4
0.2
0.3
0.1
-0.3
-0.6
-0.2
-0.6
0.0
Under the
Proposal
-0.2
-0.7
0.3
1.8
2.5
7.9
9.9
28.2
20.0
8.8
21.5
100.0
Average Federal Tax Rate5
Change (%
Points)
0.3
1.2
3.1
2.5
1.7
1.2
0.8
0.4
0.0
0.0
0.0
0.6
Under the
Proposal
-11.3
-8.3
2.3
10.2
14.3
17.1
19.2
21.9
25.4
28.9
34.5
21.9
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)
-725
-1,488
-196
2,765
5,864
10,235
16,720
30,594
74,631
204,113
1,072,212
20,356
Average AfterTax Income 4
(Dollars)
6,978
17,257
26,114
33,396
40,836
54,132
74,020
111,543
219,111
501,221
2,033,557
75,063
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
-11.6
-9.4
-0.8
7.7
12.6
15.9
18.4
21.5
25.4
28.9
34.5
21.3
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
2.6
4.0
4.4
4.3
10.9
11.7
28.2
16.3
6.0
11.4
100.0
-0.2
-0.8
-0.1
1.4
2.3
7.6
9.8
28.5
20.5
9.0
22.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0166
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Level, 2012 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.4
0.9
0.5
1.7
2.7
2.4
2.6
0.4
0.3
0.1
1.3
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.6
2.2
16.1
6.6
11.8
34.0
14.2
13.2
1.0
0.1
0.0
100.0
Average Federal Tax Change
Dollars
1
1
8
5
13
19
14
11
2
1
0
8
Percent
0.3
0.2
0.7
0.3
0.4
0.3
0.1
0.0
0.0
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.1
0.6
1.4
1.5
1.8
7.0
7.3
18.6
19.2
10.8
31.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
3.2
2.6
4.6
6.1
7.6
10.9
14.3
19.3
24.7
27.4
34.2
19.1
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
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)
200
405
1,163
2,186
3,543
6,978
12,764
27,372
75,147
194,181
1,058,279
14,421
Average AfterTax Income 4
(Dollars)
6,166
15,250
24,397
33,868
42,994
57,511
76,371
114,218
228,974
515,773
2,037,615
61,317
Average
Federal Tax
Rate 5
3.1
2.6
4.6
6.1
7.6
10.8
14.3
19.3
24.7
27.4
34.2
19.0
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
6.6
5.4
5.2
13.5
10.2
18.2
13.8
6.8
14.4
100.0
0.1
0.6
1.3
1.5
1.8
7.0
7.3
18.6
19.2
10.8
31.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.