2-Jul-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 T08-0153
Individual Income and Estate Tax Provisions in the 2001-08 Tax Cuts with AMT Patch Extended
1
Distribution of Federal Tax Change by Cash Income Percentile, 2008
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
78.7
98.2
99.5
99.8
99.8
93.6
0.1
0.1
0.0
0.0
0.0
0.1
4.3
5.4
4.8
4.8
5.1
5.0
4.0
10.1
14.0
19.3
52.5
100.0
-425
-1,272
-1,937
-3,201
-9,826
-2,769
-4.1
-4.7
-3.9
-3.8
-3.6
-3.8
1.1
8.3
15.0
18.1
25.4
20.4
99.8
100.0
99.7
99.4
99.8
0.0
0.0
0.0
0.1
0.1
5.3
4.5
4.0
6.0
6.8
14.0
8.1
10.2
20.3
10.7
-5,193
-6,164
-9,486
-74,605
-387,354
-4.0
-3.3
-2.9
-4.0
-4.3
20.7
22.6
25.4
30.0
31.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
(1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004,
TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried
individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2008 dollars): 20% $18,726, 40% $37,258, 60% $65,634, 80% $110,346, 90% $159,187, 95% $224,851, 99% $601,906, 99.9% $2,906,959.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile, 2008 1
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
78.7
98.2
99.5
99.8
99.8
93.6
0.1
0.1
0.0
0.0
0.0
0.1
4.3
5.4
4.8
4.8
5.1
5.0
4.0
10.1
14.0
19.3
52.5
100.0
-425
-1,272
-1,937
-3,201
-9,826
-2,769
-78.6
-36.1
-20.4
-17.2
-12.4
-15.7
-0.6
-1.1
-0.6
-0.3
2.6
0.0
0.2
3.3
10.2
17.3
68.9
100.0
-4.1
-4.7
-3.9
-3.8
-3.6
-3.8
1.1
8.3
15.0
18.1
25.4
20.4
99.8
100.0
99.7
99.4
99.8
0.0
0.0
0.0
0.1
0.1
5.3
4.5
4.0
6.0
6.8
14.0
8.1
10.2
20.3
10.7
-5,193
-6,164
-9,486
-74,605
-387,354
-16.1
-12.8
-10.1
-11.7
-12.1
-0.1
0.3
1.0
1.3
0.6
13.6
10.2
16.7
28.4
14.4
-4.0
-3.3
-2.9
-4.0
-4.3
20.7
22.6
25.4
30.0
31.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2008 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
38,734
32,512
29,745
24,833
21,974
148,478
26.1
21.9
20.0
16.7
14.8
100.0
10,339
27,137
50,269
85,096
273,072
73,156
541
3,525
9,494
18,637
79,191
17,672
9,799
23,611
40,775
66,459
193,881
55,484
5.2
13.0
18.9
21.9
29.0
24.2
3.7
8.1
13.8
19.5
55.2
100.0
4.6
9.3
14.7
20.0
51.7
100.0
0.8
4.4
10.8
17.6
66.3
100.0
11,083
5,366
4,406
1,119
113
7.5
3.6
3.0
0.8
0.1
130,618
186,071
331,342
1,871,777
8,924,869
32,249
48,153
93,566
636,378
3,213,155
98,369
137,918
237,777
1,235,399
5,711,713
24.7
25.9
28.2
34.0
36.0
13.3
9.2
13.4
19.3
9.3
13.2
9.0
12.7
16.8
7.8
13.6
9.9
15.7
27.1
13.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2008 dollars): 20% $18,726, 40%
$37,258, 60% $65,634, 80% $110,346, 90% $159,187, 95% $224,851, 99% $601,906, 99.9% $2,906,959.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2008 1
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
75.3
97.6
99.1
99.8
99.7
93.6
0.1
0.1
0.0
0.0
0.0
0.1
5.4
6.0
5.2
4.8
4.8
5.0
4.0
9.6
13.2
19.0
54.1
100.0
-514
-1,292
-1,892
-2,772
-7,897
-2,769
-248.4
-47.4
-23.7
-17.6
-12.0
-15.7
-0.7
-1.2
-0.8
-0.4
3.1
0.0
-0.5
2.0
7.9
16.5
74.0
100.0
-5.3
-5.3
-4.2
-3.7
-3.4
-3.8
-3.2
5.9
13.6
17.5
25.3
20.4
99.8
99.7
99.7
99.3
99.7
0.0
0.0
0.0
0.1
0.1
4.7
4.2
4.0
5.9
6.7
13.6
8.5
11.1
20.9
11.0
-3,960
-4,904
-8,185
-63,700
-339,436
-14.5
-12.0
-10.3
-11.6
-12.0
0.2
0.5
1.1
1.4
0.6
14.9
11.6
17.9
29.6
15.0
-3.6
-3.1
-2.9
-3.9
-4.3
20.9
22.8
25.2
29.9
31.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2008 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
32,136
30,600
28,760
28,147
28,156
148,478
21.6
20.6
19.4
19.0
19.0
100.0
9,676
24,413
44,659
74,152
229,510
73,156
207
2,723
7,978
15,732
66,013
17,672
9,469
21,690
36,681
58,420
163,497
55,484
2.1
11.2
17.9
21.2
28.8
24.2
2.9
6.9
11.8
19.2
59.5
100.0
3.7
8.1
12.8
20.0
55.9
100.0
0.3
3.2
8.7
16.9
70.8
100.0
14,153
7,103
5,550
1,350
133
9.5
4.8
3.7
0.9
0.1
111,502
157,889
283,470
1,621,134
7,865,274
27,314
40,875
79,482
548,422
2,829,701
84,188
117,014
203,988
1,072,712
5,035,573
24.5
25.9
28.0
33.8
36.0
14.5
10.3
14.5
20.2
9.7
14.5
10.1
13.7
17.6
8.2
14.7
11.1
16.8
28.2
14.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,738, 40% $24,107, 60% $41,408, 80% $66,804, 90% $95,425, 95% $135,398, 99% $358,614,
99.9% $1,744,098.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2008 1
Detail Table - Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
70.4
97.1
98.7
99.7
99.4
90.3
0.0
0.1
0.0
0.0
0.0
0.0
3.7
4.1
3.8
3.4
4.4
4.0
5.6
12.1
15.1
18.1
49.1
100.0
-252
-665
-988
-1,394
-4,559
-1,252
-50.9
-29.6
-15.8
-11.7
-10.4
-12.9
-0.6
-1.0
-0.4
0.3
1.8
0.0
0.8
4.3
11.9
20.1
62.7
100.0
-3.4
-3.6
-3.1
-2.6
-3.1
-3.1
3.3
8.6
16.2
19.8
26.7
20.7
99.7
99.1
99.3
98.2
99.4
0.0
0.0
0.0
0.1
0.3
3.7
3.6
4.3
5.9
6.6
12.4
7.9
11.8
16.9
8.3
-2,190
-2,928
-6,007
-40,196
-223,172
-10.7
-9.6
-10.7
-10.4
-10.3
0.4
0.4
0.4
0.6
0.3
15.5
11.0
14.6
21.7
10.7
-2.8
-2.6
-3.1
-3.8
-4.0
23.2
24.5
25.7
32.4
35.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2008 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
17,917
14,600
12,313
10,411
8,662
64,251
27.9
22.7
19.2
16.2
13.5
100.0
7,366
18,412
32,414
52,926
147,444
40,773
496
2,250
6,250
11,896
43,885
9,702
6,870
16,161
26,164
41,030
103,559
31,070
4,570
2,172
1,581
339
30
7.1
3.4
2.5
0.5
0.1
79,266
111,889
195,435
1,070,401
5,527,749
20,540
30,366
56,287
387,339
2,164,219
58,726
81,523
139,148
683,062
3,363,530
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
6.7
12.2
19.3
22.5
29.8
23.8
5.0
10.3
15.2
21.0
48.8
100.0
6.2
11.8
16.1
21.4
44.9
100.0
1.4
5.3
12.4
19.9
61.0
100.0
25.9
27.1
28.8
36.2
39.2
13.8
9.3
11.8
13.9
6.3
13.4
8.9
11.0
11.6
5.0
15.1
10.6
14.3
21.1
10.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,738, 40% $24,107, 60% $41,408, 80% $66,804, 90% $95,425, 95% $135,398, 99% $358,614,
99.9% $1,744,098.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2008 1
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
73.0
97.2
99.3
99.9
99.9
96.2
0.3
0.0
0.1
0.0
0.0
0.1
7.5
7.1
6.0
5.4
5.0
5.3
2.2
5.8
11.0
20.0
61.0
100.0
-937
-1,963
-2,865
-3,878
-9,702
-4,848
-236.1
-55.0
-29.6
-20.9
-12.5
-15.8
-0.4
-0.8
-1.0
-0.9
3.0
0.0
-0.2
0.9
4.9
14.2
80.1
100.0
-7.3
-6.3
-5.0
-4.3
-3.6
-4.0
-4.2
5.1
11.9
16.3
24.9
21.2
99.8
100.0
99.8
99.8
99.8
0.0
0.0
0.0
0.0
0.1
5.2
4.4
4.0
6.0
6.8
15.4
9.7
12.1
23.8
12.5
-5,082
-5,960
-9,262
-71,409
-372,601
-16.3
-12.9
-10.3
-11.9
-12.4
-0.1
0.4
1.2
1.5
0.7
14.8
12.3
19.9
33.1
16.6
-3.9
-3.3
-2.9
-4.0
-4.4
20.1
22.2
25.0
29.4
31.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2008 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,549
8,467
10,967
14,682
17,939
58,860
11.1
14.4
18.6
24.9
30.5
100.0
12,913
31,351
57,542
90,088
271,783
121,659
397
3,566
9,697
18,544
77,467
30,634
12,516
27,785
47,845
71,545
194,317
91,025
8,622
4,629
3,736
953
96
14.7
7.9
6.4
1.6
0.2
129,932
180,821
322,831
1,797,234
8,488,059
31,202
46,154
90,034
598,985
3,003,869
98,730
134,667
232,797
1,198,249
5,484,190
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
3.1
11.4
16.9
20.6
28.5
25.2
1.2
3.7
8.8
18.5
68.1
100.0
1.5
4.4
9.8
19.6
65.1
100.0
0.1
1.7
5.9
15.1
77.1
100.0
24.0
25.5
27.9
33.3
35.4
15.6
11.7
16.8
23.9
11.4
15.9
11.6
16.2
21.3
9.8
14.9
11.9
18.7
31.7
16.0
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,738, 40% $24,107, 60% $41,408, 80% $66,804, 90% $95,425, 95% $135,398, 99% $358,614,
99.9% $1,744,098.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2008 1
Detail Table - Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
88.8
99.2
99.6
99.8
99.7
95.9
0.0
0.1
0.0
0.0
0.0
0.1
5.9
6.8
5.2
3.8
3.4
5.1
15.1
33.2
25.4
13.9
12.4
100.0
-777
-1,774
-2,030
-2,170
-4,312
-1,666
111.8
-68.0
-24.0
-13.8
-9.1
-26.4
-6.7
-7.3
0.9
4.5
8.5
0.0
-10.2
5.6
28.9
31.0
44.7
100.0
-6.2
-6.2
-4.3
-3.0
-2.5
-4.3
-11.8
2.9
13.5
18.6
24.7
11.9
99.8
99.6
99.4
98.2
99.7
0.0
0.0
0.0
0.0
0.1
2.8
2.6
2.9
5.5
6.4
4.1
1.6
2.3
4.5
2.3
-2,218
-2,848
-5,687
-55,959
-316,830
-8.6
-7.7
-7.9
-11.1
-11.6
3.0
1.4
1.9
2.2
1.0
15.5
6.9
9.5
12.8
6.3
-2.1
-2.0
-2.1
-3.7
-4.1
22.3
23.5
24.4
29.6
31.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2008 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
7,397
7,124
4,769
2,433
1,096
22,867
32.4
31.2
20.9
10.6
4.8
100.0
12,444
28,595
47,702
72,995
175,540
38,999
-695
2,610
8,472
15,709
47,618
6,313
13,139
25,985
39,229
57,286
127,922
32,686
700
214
152
30
3
3.1
0.9
0.7
0.1
0.0
105,949
145,060
271,587
1,513,030
7,690,010
25,820
36,878
71,975
503,585
2,722,225
80,129
108,182
199,612
1,009,445
4,967,785
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.6
9.1
17.8
21.5
27.1
16.2
10.3
22.8
25.5
19.9
21.6
100.0
13.0
24.8
25.0
18.7
18.8
100.0
-3.6
12.9
28.0
26.5
36.2
100.0
24.4
25.4
26.5
33.3
35.4
8.3
3.5
4.6
5.2
2.4
7.5
3.1
4.1
4.1
1.8
12.5
5.5
7.6
10.6
5.2
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,738, 40% $24,107, 60% $41,408, 80% $66,804, 90% $95,425, 95% $135,398, 99% $358,614,
99.9% $1,744,098.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2008 1
Detail Table - Tax Units with Children
4
Percent of Tax Units
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
87.6
99.5
99.8
100.0
99.9
97.2
0.1
0.1
0.0
0.0
0.0
0.1
7.4
8.3
6.5
6.0
5.0
5.9
5.1
12.4
16.6
22.0
43.8
100.0
-1,065
-2,419
-3,150
-4,573
-10,589
-4,129
124.2
-73.1
-29.1
-21.1
-12.1
-18.6
-1.4
-2.1
-1.4
-0.6
5.4
0.0
-2.1
1.0
9.2
18.8
72.9
100.0
-7.8
-7.4
-5.3
-4.7
-3.5
-4.5
-14.1
2.7
13.0
17.5
25.7
19.5
100.0
100.0
99.8
99.7
99.9
0.0
0.0
0.0
0.1
0.0
5.1
4.1
3.9
6.4
6.8
12.3
6.3
8.3
16.9
8.5
-5,671
-6,351
-10,484
-88,593
-451,445
-15.4
-11.5
-9.5
-12.1
-12.3
0.6
0.9
1.8
2.1
1.0
15.5
11.1
18.2
28.2
13.8
-3.8
-3.0
-2.8
-4.2
-4.4
21.1
23.2
26.2
30.3
31.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2008 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
9,532
10,091
10,383
9,504
8,171
47,814
19.9
21.1
21.7
19.9
17.1
100.0
13,624
32,509
59,220
97,794
299,188
92,771
-858
3,309
10,828
21,686
87,587
22,179
14,481
29,200
48,392
76,107
211,601
70,592
4,266
1,960
1,567
378
37
8.9
4.1
3.3
0.8
0.1
147,940
211,011
381,353
2,125,042
10,289,918
36,945
55,270
110,427
732,829
3,676,954
110,996
155,741
270,926
1,392,213
6,612,964
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.3
10.2
18.3
22.2
29.3
23.9
2.9
7.4
13.9
21.0
55.1
100.0
4.1
8.7
14.9
21.4
51.2
100.0
-0.8
3.2
10.6
19.4
67.5
100.0
25.0
26.2
29.0
34.5
35.7
14.2
9.3
13.5
18.1
8.6
14.0
9.0
12.6
15.6
7.2
14.9
10.2
16.3
26.1
12.8
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
Note: Tax units with children are those claiming an exemption for children at home or away from home.
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by divi
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,738, 40% $24,107, 60% $41,408, 80% $66,804, 90% $95,425, 95% $135,398, 99% $358,614, 99.9%
$1,744,098.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
2-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0153
Individual Income and Estate Tax Provisions in 2001-08 Tax Cuts with AMT Patch Extended
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2008 1
Detail Table - Elderly Tax Units
4
Percent of Tax Units
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
72.3
97.5
98.8
99.9
99.6
93.5
0.0
0.0
0.0
0.0
0.0
0.0
3.3
2.8
3.0
4.0
5.3
4.6
2.4
5.4
6.4
16.3
69.5
100.0
-309
-538
-1,105
-2,293
-9,183
-2,621
-128.7
-54.4
-33.5
-23.8
-13.5
-16.2
-0.4
-0.7
-0.6
-1.0
2.8
0.0
-0.1
0.9
2.5
10.1
86.6
100.0
-3.2
-2.6
-2.8
-3.4
-3.8
-3.6
-0.7
2.2
5.5
10.9
24.4
18.3
99.8
99.3
99.7
99.6
99.5
0.0
0.0
0.0
0.1
0.3
4.9
4.9
4.9
6.0
6.7
13.3
10.3
16.6
29.3
15.1
-4,004
-5,353
-9,277
-55,478
-284,004
-19.6
-16.4
-13.4
-11.2
-11.3
-0.4
0.0
0.7
2.5
1.3
10.6
10.2
20.8
44.9
22.8
-3.9
-3.8
-3.6
-3.9
-4.2
16.2
19.2
23.3
30.8
32.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2008 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
5,613
7,385
4,289
5,224
5,577
28,106
20.0
26.3
15.3
18.6
19.8
100.0
9,578
20,450
39,887
67,270
241,292
73,692
240
988
3,304
9,644
68,147
16,136
9,338
19,461
36,583
57,626
173,146
57,556
2,448
1,424
1,317
389
39
8.7
5.1
4.7
1.4
0.1
101,652
142,666
257,517
1,426,168
6,750,892
20,457
32,679
69,321
494,118
2,503,562
81,195
109,986
188,197
932,050
4,247,330
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.5
4.8
8.3
14.3
28.2
21.9
2.6
7.3
8.3
17.0
65.0
100.0
3.2
8.9
9.7
18.6
59.7
100.0
0.3
1.6
3.1
11.1
83.8
100.0
20.1
22.9
26.9
34.7
37.1
12.0
9.8
16.4
26.8
12.7
12.3
9.7
15.3
22.4
10.3
11.0
10.3
20.1
42.4
21.6
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
13.3
Proposal:
4.5
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
1) Calendar year. Baseline is pre-EGTRRA law. Includes major individual income and estate tax provisions in EGTRRA 2001, JGTRRA 2003, WFTRA 2004, TIPRA 2006, PPA 2006, TIPA 2007, and ESA 2008. Assumes that
the AMT exemption is $62,550 for married couples filing jointly and $42,500 for unmarried individuals, indexed for inflation after 2007, and that personal non-refundable credits are allowed regardless of tentative AMT.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by divi
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,738, 40% $24,107, 60% $41,408, 80% $66,804, 90% $95,425, 95% $135,398, 99% $358,614, 99.9%
$1,744,098.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.