24-Jun-08
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 T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008 1
Summary Table
Cash Income Level
(thousands of 2008
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
Benefit
0.3
10.9
24.7
29.5
27.8
28.7
33.9
29.0
1.7
0.9
0.2
21.1
Without Tax
Benefit
99.7
89.1
75.3
70.5
72.2
71.3
66.1
71.1
98.3
99.1
99.8
78.9
Benefit as
Percent of
After-Tax
Income 4
0.1
0.4
1.4
1.5
1.2
1.0
0.9
0.4
0.0
0.0
0.0
0.5
Share of Total
Federal Tax
Benefits
0.1
2.9
12.3
13.8
11.7
22.7
17.7
18.3
0.2
0.0
0.0
100.0
Average
Federal Tax
Benefit ($)
3
56
297
442
461
488
584
441
17
14
3
309
Average Federal Tax Rate 5
Change due to
CTC
-0.1
-0.4
-1.2
-1.3
-1.0
-0.8
-0.7
-0.3
0.0
0.0
0.0
-0.4
With CTC
4.9
4.7
9.6
13.6
16.1
18.1
19.8
22.9
26.3
27.2
30.8
21.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current-law baseline.
(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.
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008
Detail Table
Cash Income Level
(thousands of 2008
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
Benefit
3
Without Tax
Benefit
0.3
10.9
24.7
29.5
27.8
28.7
33.9
29.0
1.7
0.9
0.2
21.1
99.7
89.1
75.3
70.5
72.2
71.3
66.1
71.1
98.3
99.1
99.8
78.9
Benefit as
Percent of
After-Tax
Income 4
0.1
0.4
1.4
1.5
1.2
1.0
0.9
0.4
0.0
0.0
0.0
0.5
Share of Total
Federal Tax
Benefits
0.1
2.9
12.3
13.8
11.7
22.7
17.7
18.3
0.2
0.0
0.0
100.0
Average Federal Tax Benefits
Dollars
3
56
297
442
461
488
584
441
17
14
3
309
As Percent of
Tax
1.0
7.4
11.1
8.5
6.0
4.2
3.3
1.4
0.0
0.0
0.0
1.9
1
Share of Federal Taxes
Change due to
CTC
With CTC
0.0
0.0
-0.2
-0.2
-0.2
-0.2
-0.2
0.1
0.3
0.1
0.4
0.0
0.2
0.7
1.9
2.9
3.5
10.0
10.1
24.8
17.2
7.5
21.2
100.0
Average Federal Tax Rate 5
Change due to
CTC
-0.1
-0.4
-1.2
-1.3
-1.0
-0.8
-0.7
-0.3
0.0
0.0
0.0
-0.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2008
Cash Income Level
(thousands of 2008
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)
17,702
23,850
19,060
14,270
11,634
21,361
13,920
19,094
5,424
967
517
148,478
Percent of
Total
11.9
16.1
12.8
9.6
7.8
14.4
9.4
12.9
3.7
0.7
0.4
100.0
Average
Income
(Dollars)
5,646
14,889
24,753
34,784
44,854
61,599
86,725
134,972
286,202
679,484
3,169,574
73,156
Average
Federal Tax
Burden
(Dollars)
279
759
2,674
5,183
7,666
11,630
17,752
31,276
75,158
185,081
974,574
16,317
Average AfterTax Income 4
(Dollars)
5,367
14,130
22,079
29,601
37,188
49,969
68,973
103,696
211,044
494,403
2,195,000
56,838
Average
Federal Tax
Rate 5
5.0
5.1
10.8
14.9
17.1
18.9
20.5
23.2
26.3
27.2
30.8
22.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.9
3.3
4.3
4.6
4.8
12.1
11.1
23.7
14.3
6.1
15.1
100.0
1.1
4.0
5.0
5.0
5.1
12.7
11.4
23.5
13.6
5.7
13.4
100.0
0.2
0.8
2.1
3.1
3.7
10.3
10.2
24.7
16.8
7.4
20.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
(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.
With CTC
4.9
4.7
9.6
13.6
16.1
18.1
19.8
22.9
26.3
27.2
30.8
21.9
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2008
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
Benefit
3
Without Tax
Benefit
0.0
1.7
3.4
2.7
1.9
1.6
1.6
0.9
0.0
0.0
0.1
1.6
100.0
98.3
96.6
97.3
98.2
98.5
98.4
99.2
100.0
100.0
99.9
98.4
Benefit as
Percent of
After-Tax
Income 4
0.0
0.1
0.2
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
Share of Total
Federal Tax
Benefits
0.0
12.5
34.1
19.7
12.6
14.0
5.6
1.4
0.0
0.0
0.0
100.0
Average Federal Tax Benefits
Dollars
0
10
40
34
27
20
20
6
0
0
1
18
As Percent of
Tax
0.0
0.8
1.1
0.5
0.3
0.2
0.1
0.0
0.0
0.0
0.0
0.2
1
Share of Federal Taxes
Change due to
CTC
With CTC
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
3.2
6.2
7.3
8.3
18.5
11.4
16.4
10.1
4.4
13.1
100.0
Average Federal Tax Rate 5
Change due to
CTC
0.0
-0.1
-0.2
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2008
Cash Income Level
(thousands of 2008
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
12,955
14,600
9,674
6,480
5,356
7,912
3,172
2,833
722
128
70
64,251
20.2
22.7
15.1
10.1
8.3
12.3
4.9
4.4
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,641
14,704
24,648
34,824
44,816
60,701
85,935
131,136
288,214
676,848
3,103,832
40,773
Average
Federal Tax
Burden
(Dollars)
414
1,267
3,672
6,471
8,864
13,396
20,613
32,973
80,157
197,763
1,071,199
8,908
Average AfterTax Income 4
(Dollars)
5,226
13,437
20,976
28,354
35,952
47,305
65,322
98,163
208,058
479,085
2,032,633
31,864
Average
Federal Tax
Rate 5
7.4
8.6
14.9
18.6
19.8
22.1
24.0
25.1
27.8
29.2
34.5
21.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.8
8.2
9.1
8.6
9.2
18.3
10.4
14.2
7.9
3.3
8.3
100.0
3.3
9.6
9.9
9.0
9.4
18.3
10.1
13.6
7.3
3.0
6.9
100.0
0.9
3.2
6.2
7.3
8.3
18.5
11.4
16.3
10.1
4.4
13.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
(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.
With CTC
7.4
8.6
14.7
18.5
19.7
22.0
24.0
25.1
27.8
29.2
34.5
21.8
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2008
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
Benefit
3
Without Tax
Benefit
1.2
14.5
27.8
36.6
42.2
40.7
42.6
34.8
2.0
1.1
0.2
31.1
98.9
85.5
72.2
63.4
57.8
59.3
57.5
65.2
98.0
98.9
99.8
68.9
Benefit as
Percent of
After-Tax
Income 4
0.3
0.5
1.5
2.0
2.0
1.4
1.1
0.5
0.0
0.0
0.0
0.6
Share of Total
Federal Tax
Benefits
0.1
1.1
5.3
8.0
9.6
24.4
23.7
27.3
0.3
0.0
0.0
100.0
Average Federal Tax Benefits
Dollars
15
78
346
615
796
755
768
536
20
16
3
514
As Percent of
Tax
5.5
15.2
21.5
17.4
13.4
7.5
4.6
1.7
0.0
0.0
0.0
1.8
1
Share of Federal Taxes
Change due to
CTC
With CTC
0.0
0.0
-0.1
-0.1
-0.2
-0.3
-0.3
0.0
0.4
0.2
0.5
0.0
0.0
0.1
0.4
0.7
1.2
5.6
9.0
28.7
20.6
9.1
24.6
100.0
Average Federal Tax Rate 5
Change due to
CTC
-0.3
-0.5
-1.4
-1.8
-1.8
-1.2
-0.9
-0.4
0.0
0.0
0.0
-0.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2008
Cash Income Level
(thousands of 2008
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
2,097
4,051
4,643
3,924
3,647
9,762
9,336
15,384
4,527
808
426
58,860
3.6
6.9
7.9
6.7
6.2
16.6
15.9
26.1
7.7
1.4
0.7
100.0
Average
Income
(Dollars)
4,837
15,431
24,834
34,857
44,948
62,665
87,166
136,073
285,667
679,937
3,121,378
121,659
Average
Federal Tax
Burden
(Dollars)
269
516
1,612
3,538
5,950
10,061
16,568
30,952
74,355
182,958
940,865
28,234
Average AfterTax Income 4
(Dollars)
4,568
14,916
23,222
31,319
38,997
52,605
70,598
105,121
211,312
496,979
2,180,513
93,424
Average
Federal Tax
Rate 5
5.6
3.3
6.5
10.2
13.2
16.1
19.0
22.8
26.0
26.9
30.1
23.2
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
1.9
2.3
8.5
11.4
29.2
18.1
7.7
18.6
100.0
0.2
1.1
2.0
2.2
2.6
9.3
12.0
29.4
17.4
7.3
16.9
100.0
0.0
0.1
0.5
0.8
1.3
5.9
9.3
28.7
20.3
8.9
24.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
(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.
With CTC
5.3
2.8
5.1
8.4
11.5
14.9
18.1
22.4
26.0
26.9
30.1
22.8
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2008
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
Benefit
3
Without Tax
Benefit
0.7
35.8
69.4
72.2
66.9
60.1
55.7
20.2
2.2
0.3
0.2
50.7
99.3
64.2
30.6
27.8
33.1
39.9
44.3
79.8
97.8
99.7
99.8
49.3
Benefit as
Percent of
After-Tax
Income 4
0.1
1.1
3.5
3.4
2.6
1.8
1.1
0.2
0.0
0.0
0.0
1.9
Share of Total
Federal Tax
Benefits
0.1
6.2
25.7
25.5
15.7
19.5
6.1
1.1
0.0
0.0
0.0
100.0
Average Federal Tax Benefits
Dollars
As Percent of
Tax
7
178
822
1,028
969
868
722
202
30
5
3
615
-1.5
-27.9
56.2
23.1
13.2
7.4
3.8
0.7
0.0
0.0
0.0
10.1
1
Share of Federal Taxes
Change due to
CTC
With CTC
-0.1
-0.9
-2.4
-1.6
-0.4
0.8
1.1
1.7
0.8
0.3
0.8
0.0
-0.9
-3.2
2.3
9.5
11.6
27.3
17.1
17.8
7.6
2.8
8.2
100.0
Average Federal Tax Rate 5
Change due to
CTC
-0.1
-1.2
-3.3
-3.0
-2.2
-1.4
-0.8
-0.2
0.0
0.0
0.0
-1.6
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2008
Cash Income Level
(thousands of 2008
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
2,489
4,914
4,397
3,489
2,285
3,168
1,185
732
129
19
11
22,867
10.9
21.5
19.2
15.3
10.0
13.9
5.2
3.2
0.6
0.1
0.1
100.0
Average
Income
(Dollars)
6,356
14,990
24,884
34,573
44,845
60,613
85,666
127,507
292,846
672,753
3,045,089
38,999
Average
Federal Tax
Burden
(Dollars)
-441
-636
1,465
4,449
7,351
11,687
18,800
30,736
73,958
181,312
933,636
6,112
Average AfterTax Income 4
(Dollars)
6,797
15,626
23,420
30,124
37,494
48,926
66,866
96,771
218,888
491,441
2,111,453
32,887
Average
Federal Tax
Rate 5
-6.9
-4.3
5.9
12.9
16.4
19.3
22.0
24.1
25.3
27.0
30.7
15.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.8
8.3
12.3
13.5
11.5
21.5
11.4
10.5
4.2
1.5
3.8
100.0
2.3
10.2
13.7
14.0
11.4
20.6
10.5
9.4
3.8
1.3
3.1
100.0
-0.8
-2.2
4.6
11.1
12.0
26.5
16.0
16.1
6.8
2.5
7.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
(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.
With CTC
-7.0
-5.4
2.6
9.9
14.2
17.9
21.1
24.0
25.2
27.0
30.7
14.1
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2008
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
Benefit
Without Tax
Benefit
1.4
43.2
79.7
84.7
82.6
81.1
80.4
61.4
3.6
2.1
0.4
63.2
98.6
56.8
20.3
15.3
17.4
18.9
19.7
38.6
96.4
97.9
99.6
36.8
Benefit as
Percent of
After-Tax
4
Income
0.3
1.4
4.0
4.2
3.6
2.7
2.0
0.9
0.0
0.0
0.0
1.3
Share of Total
Federal Tax
Benefits
0.1
2.8
11.8
13.5
11.6
22.9
18.1
18.8
0.2
0.0
0.0
100.0
Average Federal Tax Benefits
Dollars
As Percent of
Tax
17
221
955
1,277
1,374
1,384
1,386
935
36
30
6
931
-2.6
-19.4
101.4
31.2
19.4
12.3
7.8
2.9
0.1
0.0
0.0
4.5
Share of Federal Taxes
Change due to
CTC
0.0
-0.2
-0.5
-0.5
-0.4
-0.7
-0.4
0.5
0.9
0.4
1.0
0.0
With CTC
-0.2
-0.8
0.0
1.4
2.3
7.7
10.0
29.1
20.4
8.6
21.6
100.0
5
Average Federal Tax Rate
Change due to
CTC
-0.3
-1.5
-3.8
-3.7
-3.1
-2.2
-1.6
-0.7
0.0
0.0
0.0
-1.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2008 1
Cash Income Level
(thousands of 2008
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
Tax Units 3
Number
(thousands)
Percent of
Total
2,776
5,557
5,511
4,690
3,752
7,363
5,827
8,962
2,595
436
212
47,814
5.8
11.6
11.5
9.8
7.9
15.4
12.2
18.7
5.4
0.9
0.4
100.0
Average
Income
(Dollars)
5,898
15,197
24,900
34,744
44,854
61,821
87,024
135,841
282,902
676,229
3,150,935
92,771
Average
Federal Tax
Burden
(Dollars)
-652
-1,137
942
4,090
7,086
11,297
17,733
31,856
75,206
187,274
969,698
20,884
Average After4
Tax Income
(Dollars)
6,550
16,334
23,958
30,653
37,768
50,524
69,291
103,985
207,696
488,955
2,181,237
71,887
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-11.1
-7.5
3.8
11.8
15.8
18.3
20.4
23.5
26.6
27.7
30.8
22.5
0.4
1.9
3.1
3.7
3.8
10.3
11.4
27.5
16.6
6.7
15.1
100.0
0.5
2.6
3.8
4.2
4.1
10.8
11.8
27.1
15.7
6.2
13.5
100.0
-0.2
-0.6
0.5
1.9
2.7
8.3
10.4
28.6
19.5
8.2
20.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
Note: Tax units with
(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.
With CTC
-11.3
-8.9
-0.1
8.1
12.7
16.0
18.8
22.8
26.6
27.7
30.8
21.5
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2008
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
Benefit
Without Tax
Benefit
0.0
0.2
1.2
1.1
1.8
2.9
2.8
1.7
0.3
0.1
0.0
1.3
100.0
99.8
98.8
98.9
98.2
97.1
97.2
98.3
99.7
99.9
100.0
98.7
Benefit as
Percent of
After-Tax
4
Income
0.0
0.0
0.1
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Benefits
0.3
1.0
9.4
6.5
9.4
38.3
19.2
14.8
0.9
0.1
0.0
100.0
Average Federal Tax Benefits
Dollars
0
1
10
14
23
41
33
21
4
2
0
15
As Percent of
Tax
0.2
0.2
0.8
0.6
0.6
0.6
0.3
0.1
0.0
0.0
0.0
0.1
Share of Federal Taxes
Change due to
CTC
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 CTC
0.1
0.7
1.3
1.1
1.6
7.4
8.0
19.8
19.0
10.3
30.7
100.0
5
Average Federal Tax Rate
Change due to
CTC
0.0
0.0
0.0
0.0
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2008 1
Cash Income Level
(thousands of 2008
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
Tax Units 3
Number
(thousands)
Percent of
Total
2,972
6,525
3,880
2,027
1,758
4,029
2,494
3,021
1,039
218
124
28,106
10.6
23.2
13.8
7.2
6.3
14.3
8.9
10.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,620
14,858
24,363
34,496
44,970
61,893
86,278
135,091
292,533
682,870
3,120,404
73,692
Average
Federal Tax
Burden
(Dollars)
175
412
1,339
2,204
3,697
7,381
12,881
26,354
73,417
188,438
991,718
14,287
Average After4
Tax Income
(Dollars)
6,445
14,445
23,024
32,292
41,272
54,513
73,398
108,737
219,115
494,432
2,128,686
59,404
Average
Federal Tax
5
Rate
2.6
2.8
5.5
6.4
8.2
11.9
14.9
19.5
25.1
27.6
31.8
19.4
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.0
4.7
4.6
3.4
3.8
12.0
10.4
19.7
14.7
7.2
18.7
100.0
1.2
5.7
5.4
3.9
4.4
13.2
11.0
19.7
13.6
6.5
15.8
100.0
0.1
0.7
1.3
1.1
1.6
7.4
8.0
19.8
19.0
10.2
30.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
Note: Elderly tax
(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.
With CTC
2.6
2.8
5.5
6.4
8.2
11.9
14.9
19.5
25.1
27.6
31.8
19.4
24-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0139
Child Tax Credit (CTC)
Distribution of Federal Tax Benefits by Cash Income Level, 2008
Detail Table - Tax Units with Eligible Children Only
Cash Income Level
(thousands of 2008
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
Benefit
3
Without Tax
Benefit
1.4
50.6
92.9
98.0
98.5
99.6
99.3
78.5
4.7
2.7
0.5
74.9
98.6
49.4
7.2
2.0
1.5
0.4
0.7
21.5
95.4
97.3
99.5
25.1
Benefit as
Percent of
After-Tax
Income 4
0.2
1.6
4.7
4.8
4.3
3.4
2.5
1.2
0.0
0.0
0.0
1.7
Share of Total
Federal Tax
Benefits
0.1
2.9
12.3
13.8
11.7
22.7
17.7
18.3
0.2
0.0
0.0
100.0
Average Federal Tax Benefits
Dollars
As Percent of
Tax
14
260
1,115
1,470
1,634
1,697
1,709
1,194
47
40
9
1,096
-3.9
-32.3
111.2
36.0
23.1
15.0
9.7
3.8
0.1
0.0
0.0
5.8
1
Share of Federal Taxes
Change due to
CTC
With CTC
0.0
-0.2
-0.7
-0.7
-0.5
-0.9
-0.4
0.6
1.2
0.5
1.2
0.0
-0.2
-0.7
-0.1
1.5
2.4
7.9
10.2
28.8
20.3
8.4
21.4
100.0
Average Federal Tax Rate 5
Change due to
CTC
-0.3
-1.7
-4.5
-4.2
-3.7
-2.8
-2.0
-0.9
0.0
0.0
0.0
-1.3
Baseline Distribution of Income and Federal Taxes for Tax Units with Eligible Children Only
1
by Cash Income Level, 2008
Cash Income Level
(thousands of 2008
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
3,482
5,148
5,077
4,295
3,285
6,145
4,757
7,045
1,996
334
161
41,874
8.3
12.3
12.1
10.3
7.8
14.7
11.4
16.8
4.8
0.8
0.4
100.0
Average
Income
(Dollars)
5,775
15,120
24,871
34,697
44,816
61,740
87,060
135,851
284,080
677,829
3,206,263
85,250
Average
Federal Tax
Burden
(Dollars)
-365
-804
1,003
4,080
7,088
11,307
17,685
31,700
75,895
188,412
989,975
18,924
Average AfterTax Income 4
(Dollars)
6,139
15,925
23,868
30,617
37,728
50,432
69,375
104,151
208,185
489,417
2,216,288
66,326
Average
Federal Tax
Rate 5
-6.3
-5.3
4.0
11.8
15.8
18.3
20.3
23.3
26.7
27.8
30.9
22.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
2.2
3.5
4.2
4.1
10.6
11.6
26.8
15.9
6.4
14.5
100.0
0.8
3.0
4.4
4.7
4.5
11.2
11.9
26.4
15.0
5.9
12.9
100.0
-0.2
-0.5
0.6
2.2
2.9
8.8
10.6
28.2
19.1
8.0
20.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
(1) Calendar year. Benefits of the CTC are measured against a current law baseline.
(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.
With CTC
-6.6
-7.0
-0.5
7.5
12.2
15.6
18.4
22.5
26.7
27.8
30.9
20.9