7-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 T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile, 2010 1
Summary Table
Percent of Tax Units 4
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 ($)
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
1.6
6.4
35.9
92.9
21.4
100.0
98.4
93.6
64.1
7.1
78.6
-22.8
-7.3
-3.1
0.0
4.2
0.0
n/a
n/a
n/a
n/a
n/a
n/a
2,409
1,841
1,334
-1
-8,803
0
21.6
6.3
2.5
0.0
-3.0
0.0
26.9
19.3
21.6
22.1
25.6
24.0
89.5
96.2
96.0
97.8
99.4
10.5
3.8
4.0
2.2
0.6
2.0
2.7
3.9
7.1
8.1
n/a
n/a
n/a
n/a
n/a
-2,071
-3,998
-9,880
-94,957
-499,049
-1.5
-2.0
-2.8
-4.8
-5.3
23.5
24.1
25.4
28.0
29.3
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:
18.2
Proposal:
5.5
(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. Cost of the tax cuts is financed with a $2,483 lumpsum levy on all non-dependent tax units.
(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% $19,264, 40% $38,201, 60% $67,715, 80% $114,258, 90% $165,007, 95% $232,495, 99% $620,442, 99.9% $2,957,751.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile, 2010 1
Detail Table
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
0.0
1.6
6.4
35.9
92.9
21.4
100.0
98.4
93.6
64.1
7.1
78.6
-22.8
-7.3
-3.1
0.0
4.2
0.0
n/a
n/a
n/a
n/a
n/a
n/a
2,409
1,841
1,334
-1
-8,803
0
409.1
48.7
12.9
0.0
-10.5
0.0
3.3
2.1
1.4
0.0
-6.9
0.0
4.1
6.5
12.4
18.1
58.8
100.0
21.6
6.3
2.5
0.0
-3.0
0.0
26.9
19.3
21.6
22.1
25.6
24.0
89.5
96.2
96.0
97.8
99.4
10.5
3.8
4.0
2.2
0.6
2.0
2.7
3.9
7.1
8.1
n/a
n/a
n/a
n/a
n/a
-2,071
-3,998
-9,880
-94,957
-499,049
-5.9
-7.6
-9.8
-14.6
-15.3
-0.8
-0.8
-1.6
-3.8
-2.0
13.2
9.3
14.2
22.2
11.1
-1.5
-2.0
-2.8
-4.8
-5.3
23.5
24.1
25.4
28.0
29.3
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, 2010 1
4
Tax Units
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
39,491
33,367
30,543
25,544
22,575
152,206
26.0
21.9
20.1
16.8
14.8
100.0
11,166
29,131
54,009
91,878
292,812
78,753
589
3,784
10,308
20,342
83,747
18,905
10,577
25,348
43,701
71,536
209,065
59,848
5.3
13.0
19.1
22.1
28.6
24.0
3.7
8.1
13.8
19.6
55.2
100.0
4.6
9.3
14.7
20.1
51.8
100.0
0.8
4.4
10.9
18.1
65.7
100.0
11,415
5,515
4,501
1,143
116
7.5
3.6
3.0
0.8
0.1
141,464
201,383
357,460
1,990,331
9,409,657
35,260
52,444
100,600
652,471
3,257,912
106,204
148,939
256,860
1,337,859
6,151,745
24.9
26.0
28.1
32.8
34.6
13.5
9.3
13.4
19.0
9.1
13.3
9.0
12.7
16.8
7.8
14.0
10.1
15.7
25.9
13.1
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $19,264, 40%
$38,201, 60% $67,715, 80% $114,258, 90% $165,007, 95% $232,495, 99% $620,442, 99.9% $2,957,751.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table
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
0.5
3.8
8.1
26.7
73.3
21.4
99.5
96.2
91.9
73.3
26.7
78.6
-23.1
-7.8
-3.6
-0.7
3.8
0.0
n/a
n/a
n/a
n/a
n/a
n/a
2,362
1,822
1,399
461
-6,628
0
976.6
61.3
16.2
2.7
-9.5
0.0
2.7
2.0
1.4
0.5
-6.6
0.0
3.0
5.2
10.3
17.8
63.5
100.0
22.6
6.9
2.9
0.6
-2.7
0.0
24.9
18.2
20.9
22.1
25.7
24.0
60.5
78.8
93.4
96.2
99.3
39.5
21.2
6.6
3.8
0.7
1.0
2.1
3.5
7.1
8.2
n/a
n/a
n/a
n/a
n/a
-932
-2,682
-7,781
-82,720
-444,716
-3.1
-6.0
-9.1
-14.7
-15.5
-0.5
-0.7
-1.5
-4.0
-2.1
14.6
10.6
15.3
23.0
11.5
-0.8
-1.6
-2.5
-4.8
-5.4
23.9
24.5
25.4
27.9
29.2
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, 2010 1
4
Tax Units
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
32,821
31,406
29,601
28,883
28,810
152,206
21.6
20.6
19.5
19.0
18.9
100.0
10,461
26,284
47,962
80,213
246,942
78,753
242
2,971
8,629
17,276
70,076
18,905
10,219
23,312
39,333
62,937
176,867
59,848
2.3
11.3
18.0
21.5
28.4
24.0
2.9
6.9
11.8
19.3
59.4
100.0
3.7
8.0
12.8
20.0
55.9
100.0
0.3
3.2
8.9
17.3
70.2
100.0
14,500
7,269
5,664
1,377
136
9.5
4.8
3.7
0.9
0.1
120,998
171,358
306,359
1,728,054
8,294,256
29,894
44,659
85,495
564,039
2,865,534
91,104
126,699
220,864
1,164,015
5,428,722
24.7
26.1
27.9
32.6
34.6
14.6
10.4
14.5
19.9
9.4
14.5
10.1
13.7
17.6
8.1
15.1
11.3
16.8
27.0
13.6
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $13,175, 40% $24,896, 60% $42,910, 80% $69,481, 90% $99,405, 95% $140,767, 99% $369,601, 99.9%
$1,787,257.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Single 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
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.2
1.8
34.3
4.9
100.0
100.0
99.8
98.2
65.6
95.1
-33.1
-12.8
-7.1
-3.4
4.2
-3.6
56.6
42.3
32.4
20.7
-52.9
100.0
2,462
2,232
2,000
1,522
-4,755
1,201
455.2
92.6
29.8
11.7
-10.2
11.6
5.7
3.8
2.1
0.0
-11.7
0.0
7.2
9.1
14.7
20.5
48.3
100.0
30.8
11.2
5.7
2.7
-3.0
2.7
37.6
23.4
24.9
25.3
26.3
26.3
9.7
41.5
84.5
91.2
99.1
90.3
58.5
15.5
8.8
0.9
-0.6
1.3
4.8
11.6
13.6
2.2
-3.3
-14.5
-37.2
-19.0
371
-1,181
-7,225
-86,861
-498,447
1.7
-3.6
-11.9
-21.7
-22.6
-1.4
-1.5
-3.0
-5.9
-3.0
13.9
9.3
11.2
14.0
6.8
0.4
-1.0
-3.4
-7.6
-8.5
26.4
26.3
25.2
27.3
29.2
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, 2010 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
18,210
14,995
12,823
10,747
8,802
65,926
27.6
22.8
19.5
16.3
13.4
100.0
7,983
19,871
34,970
57,411
158,831
43,953
541
2,411
6,710
13,015
46,592
10,357
7,442
17,460
28,260
44,396
112,239
33,597
4,662
2,207
1,594
339
30
7.1
3.4
2.4
0.5
0.1
86,159
121,836
211,955
1,148,722
5,865,339
22,412
33,194
60,625
400,171
2,209,465
63,747
88,643
151,331
748,552
3,655,873
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
6.8
12.1
19.2
22.7
29.3
23.6
5.0
10.3
15.5
21.3
48.3
100.0
6.1
11.8
16.4
21.5
44.6
100.0
1.4
5.3
12.6
20.5
60.1
100.0
26.0
27.2
28.6
34.8
37.7
13.9
9.3
11.7
13.5
6.1
13.4
8.8
10.9
11.5
5.0
15.3
10.7
14.2
19.9
9.8
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $13,175, 40% $24,896, 60% $42,910, 80% $69,481, 90% $99,405, 95% $140,767, 99% $369,601, 99.9%
$1,787,257.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Married Tax Units Filing Jointly
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
2.6
11.3
16.9
45.8
93.8
45.2
97.4
88.7
83.1
54.1
6.2
54.8
-16.2
-4.8
-1.6
0.5
3.7
1.9
-13.0
-11.0
-8.0
4.9
127.5
100.0
2,165
1,426
803
-367
-7,753
-1,864
463.1
37.0
7.6
-1.8
-9.4
-5.7
0.8
0.8
0.8
0.6
-3.1
0.0
1.0
2.5
6.8
16.1
73.6
100.0
15.6
4.2
1.3
-0.4
-2.7
-1.4
19.0
15.7
18.3
20.6
25.5
23.6
90.2
96.7
97.5
98.1
99.4
9.8
3.3
2.5
1.9
0.6
1.6
2.4
3.3
6.3
7.3
13.7
14.9
28.1
70.8
37.6
-1,740
-3,488
-8,215
-80,996
-427,719
-5.1
-6.9
-8.5
-13.2
-14.1
0.1
-0.2
-0.6
-2.4
-1.4
15.4
12.0
18.2
28.0
13.8
-1.2
-1.8
-2.4
-4.2
-4.8
23.0
23.9
25.4
27.9
29.2
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, 2010 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
6,695
8,633
11,078
14,945
18,390
60,003
11.2
14.4
18.5
24.9
30.7
100.0
13,865
33,676
61,922
97,550
292,129
131,312
468
3,853
10,542
20,416
82,188
32,861
13,397
29,823
51,381
77,134
209,941
98,451
8,823
4,764
3,826
978
98
14.7
7.9
6.4
1.6
0.2
140,866
195,719
348,056
1,908,327
8,920,566
34,166
50,335
96,672
614,165
3,030,661
106,700
145,384
251,384
1,294,162
5,889,905
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
3.4
11.4
17.0
20.9
28.1
25.0
1.2
3.7
8.7
18.5
68.2
100.0
1.5
4.4
9.6
19.5
65.4
100.0
0.2
1.7
5.9
15.5
76.7
100.0
24.3
25.7
27.8
32.2
34.0
15.8
11.8
16.9
23.7
11.1
15.9
11.7
16.3
21.4
9.8
15.3
12.2
18.8
30.5
15.1
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $13,175, 40% $24,896, 60% $42,910, 80% $69,481, 90% $99,405, 95% $140,767, 99% $369,601, 99.9%
$1,787,257.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Head of Household 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
0.0
2.7
8.9
22.2
49.2
7.5
100.0
97.3
91.1
77.8
50.7
92.5
-16.3
-5.2
-2.8
-1.2
1.9
-4.0
53.0
32.5
17.6
5.8
-9.2
100.0
2,296
1,459
1,170
747
-2,666
1,395
-327.8
48.7
12.6
4.3
-5.2
20.0
9.4
3.2
-1.7
-3.5
-7.4
0.0
6.1
16.5
26.2
23.4
27.7
100.0
17.1
4.7
2.3
0.9
-1.4
3.3
11.9
14.5
20.3
22.9
25.6
19.8
35.4
64.4
84.7
92.1
99.3
64.5
35.6
15.3
7.9
0.7
-0.1
0.7
2.3
6.4
7.5
0.3
-0.5
-2.4
-6.5
-3.4
117
-854
-4,875
-68,544
-406,416
0.4
-2.1
-6.4
-13.4
-14.6
-2.1
-0.9
-1.6
-2.7
-1.4
10.7
4.1
5.8
7.0
3.3
0.1
-0.5
-1.7
-4.3
-5.0
24.8
25.1
24.7
27.9
29.2
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, 2010 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
7,646
7,371
4,983
2,562
1,139
23,751
32.2
31.0
21.0
10.8
4.8
100.0
13,428
30,812
51,446
79,109
189,015
42,212
-700
2,996
9,295
17,392
50,994
6,981
14,129
27,816
42,151
61,716
138,021
35,231
739
208
161
32
3
3.1
0.9
0.7
0.1
0.0
115,628
157,848
291,009
1,592,859
8,179,514
28,607
40,488
76,830
512,823
2,790,609
87,021
117,360
214,179
1,080,036
5,388,905
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.2
9.7
18.1
22.0
27.0
16.5
10.2
22.7
25.6
20.2
21.5
100.0
12.9
24.5
25.1
18.9
18.8
100.0
-3.2
13.3
27.9
26.9
35.0
100.0
24.7
25.7
26.4
32.2
34.1
8.5
3.3
4.7
5.0
2.3
7.7
2.9
4.1
4.1
1.8
12.8
5.1
7.5
9.8
4.7
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $13,175, 40% $24,896, 60% $42,910, 80% $69,481, 90% $99,405, 95% $140,767, 99% $369,601, 99.9%
$1,787,257.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010
Detail Table - Tax Units with Children
Percent of Tax Units 4
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
1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
1.8
11.5
21.4
64.8
94.5
36.3
98.2
88.4
78.5
35.2
5.5
63.7
-13.7
-3.4
-0.9
1.4
3.9
1.3
-43.8
-22.7
-10.9
23.5
154.5
100.0
2,125
1,048
489
-1,151
-8,883
-974
-247.5
28.1
4.1
-4.8
-9.5
-4.1
1.8
1.1
0.9
-0.2
-3.7
0.0
1.1
4.4
11.7
19.8
62.8
100.0
14.5
3.0
0.8
-1.1
-2.8
-1.0
8.6
13.7
19.4
21.7
26.4
23.0
91.4
98.1
97.5
98.8
99.7
8.5
1.9
2.5
1.2
0.3
2.1
2.8
3.3
6.6
7.1
22.3
19.5
32.5
80.1
39.8
-2,455
-4,706
-9,720
-99,638
-507,197
-6.0
-7.7
-8.2
-13.1
-13.6
-0.3
-0.4
-0.7
-2.4
-1.2
14.8
9.9
15.6
22.5
10.8
-1.5
-2.1
-2.4
-4.4
-4.7
23.9
24.6
26.6
29.1
29.8
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, 2010
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
9,706
10,212
10,505
9,595
8,188
48,340
20.1
21.1
21.7
19.9
16.9
100.0
14,702
34,956
63,732
105,871
322,351
99,549
-859
3,733
11,881
24,067
93,885
23,900
15,561
31,222
51,851
81,804
228,467
75,649
4,282
1,952
1,576
379
37
8.9
4.0
3.3
0.8
0.1
160,580
229,132
411,928
2,259,920
10,858,536
40,804
61,052
119,198
758,191
3,742,481
119,776
168,079
292,730
1,501,729
7,116,055
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.8
10.7
18.6
22.7
29.1
24.0
3.0
7.4
13.9
21.1
54.9
100.0
4.1
8.7
14.9
21.5
51.2
100.0
-0.7
3.3
10.8
20.0
66.5
100.0
25.4
26.7
28.9
33.6
34.5
14.3
9.3
13.5
17.8
8.3
14.0
9.0
12.6
15.6
7.2
15.1
10.3
16.3
24.8
12.0
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $13,175, 40% $24,896, 60% $42,910, 80% $69,481, 90% $99,405, 95% $140,767, 99% $369,601, 99.9%
$1,787,257.
(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.
7-Jul-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0159
2001-06 Tax Cuts with AMT Patch Extended: Lump-Sum Financing
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010
Detail Table - Elderly Tax Units
Percent of Tax Units 4
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
0.0
0.1
0.8
9.8
72.2
16.3
100.0
99.9
99.2
90.2
27.8
83.7
-24.3
-11.0
-4.9
-1.3
5.7
1.0
57.2
75.1
90.7
95.6
99.4
42.8
24.9
9.3
4.4
0.6
1.5
2.8
5.5
9.5
10.9
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average Federal Tax Change
1
Share of Federal Taxes
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
Dollars
Percent
Change (%
Points)
Under the
Proposal
-82.2
-103.8
-49.2
-25.4
360.4
100.0
2,463
2,328
1,911
812
-10,807
-594
996.4
224.2
55.2
7.6
-15.3
-3.5
3.0
3.9
1.9
1.4
-10.2
0.0
3.3
5.5
5.1
13.1
73.0
100.0
23.7
10.5
4.5
1.1
-4.2
-0.8
26.1
15.2
12.6
15.7
23.1
20.5
19.8
29.1
86.9
224.5
118.2
-1,340
-3,421
-11,220
-97,780
-505,807
-6.1
-9.8
-15.2
-19.4
-20.1
-0.3
-0.7
-2.4
-6.7
-3.6
11.2
9.8
17.7
34.2
17.2
-1.2
-2.2
-4.0
-6.4
-7.1
18.7
20.3
22.4
26.6
28.2
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, 2010
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
5,775
7,717
4,454
5,413
5,771
29,149
19.8
26.5
15.3
18.6
19.8
100.0
10,390
22,198
42,782
73,004
259,004
79,238
247
1,038
3,461
10,622
70,604
16,813
10,143
21,160
39,322
62,382
188,400
62,425
2,562
1,471
1,340
397
40
8.8
5.1
4.6
1.4
0.1
110,558
155,282
279,444
1,530,982
7,145,995
22,039
35,006
73,763
504,801
2,520,342
88,519
120,275
205,681
1,026,181
4,625,653
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.4
4.7
8.1
14.6
27.3
21.2
2.6
7.4
8.3
17.1
64.7
100.0
3.2
9.0
9.6
18.6
59.8
100.0
0.3
1.6
3.2
11.7
83.1
100.0
19.9
22.5
26.4
33.0
35.3
12.3
9.9
16.2
26.3
12.5
12.5
9.7
15.2
22.4
10.3
11.5
10.5
20.2
40.9
20.8
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:
18.2
Proposal:
5.5
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. Cost of
the tax cuts is financed with a $2,483 lump-sum levy on all non-dependent tax units.
(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% $13,175, 40% $24,896, 60% $42,910, 80% $69,481, 90% $99,405, 95% $140,767, 99% $369,601, 99.9%
$1,787,257.
(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.