9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
1
Distribution of Federal Tax Change by Cash Income Percentile, 2014
Summary Table
Percent of Tax Units4
Cash Income Percentile
2,3
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 Rate6
Change (%
Points)
Under the
Proposal
28.4
33.3
37.5
41.6
50.3
36.8
68.2
66.0
62.4
58.3
49.7
62.1
-3.4
-2.0
-0.3
0.2
11.0
5.3
-2.9
-3.7
-0.9
0.8
106.4
100.0
393
541
152
-165
-23,756
-3,298
3.2
1.8
0.3
-0.2
-7.9
-4.1
8.5
14.1
18.8
21.9
20.4
19.6
47.2
42.2
58.5
87.7
97.2
52.8
57.9
41.5
12.3
2.8
1.5
1.9
7.8
26.2
35.6
3.8
3.3
18.6
80.6
48.4
-1,701
-3,022
-20,931
-353,891
-2,102,154
-1.2
-1.4
-5.6
-17.8
-23.3
23.8
24.8
22.2
14.2
11.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 23.2
Proposal: 0.0
(1) Calendar year. Baseline is current law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for
employer-sponsored health insurance; (c) provide a refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the
corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow taxpayers to choose between the current tax system and an alternative
simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and has a standard deduction
of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that
level. Interest, dividends, capital gains, and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax
system are indexed for inflation; the refundable credit amount is indexed by the average growth rate of CPI and medical care expenses. Taxpayers are assumed to all
opt into the alternative system.
(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 2009 dollars): 20% $19,925, 40% $38,371, 60% $67,991, 80% $116,859, 90% $169,290, 95% $237,098, 99% $632,966, 99.9% $2,923,051.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile, 2014 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
28.4
33.3
37.5
41.6
50.3
36.8
68.2
66.0
62.4
58.3
49.7
62.1
-3.4
-2.0
-0.3
0.2
11.0
5.3
-2.9
-3.7
-0.9
0.8
106.4
100.0
393
541
152
-165
-23,756
-3,298
59.7
14.5
1.5
-0.8
-27.9
-17.2
0.8
1.7
2.4
3.7
-8.5
0.0
1.6
6.0
13.2
22.2
57.0
100.0
3.2
1.8
0.3
-0.2
-7.9
-4.1
8.5
14.1
18.8
21.9
20.4
19.6
47.2
42.2
58.5
87.7
97.2
52.8
57.9
41.5
12.3
2.8
1.5
1.9
7.8
26.2
35.6
3.8
3.3
18.6
80.6
48.4
-1,701
-3,022
-20,931
-353,891
-2,102,154
-4.6
-5.5
-20.2
-55.7
-67.3
2.2
1.5
-0.6
-11.5
-7.5
16.6
11.9
15.2
13.3
4.9
-1.2
-1.4
-5.6
-17.8
-23.3
23.8
24.8
22.2
14.2
11.3
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, 2014 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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
39,416
36,129
32,694
27,378
23,893
161,771
24.4
22.3
20.2
16.9
14.8
100.0
12,314
30,366
55,193
95,202
301,906
81,418
658
3,731
10,214
21,047
85,211
19,228
11,657
26,636
44,979
74,156
216,695
62,190
5.3
12.3
18.5
22.1
28.2
23.6
3.7
8.3
13.7
19.8
54.8
100.0
4.6
9.6
14.6
20.2
51.5
100.0
0.8
4.3
10.7
18.5
65.5
100.0
12,052
5,875
4,752
1,215
123
7.5
3.6
2.9
0.8
0.1
148,490
211,074
372,043
1,988,880
9,038,534
37,088
55,340
103,556
635,347
3,125,317
111,402
155,733
268,487
1,353,533
5,913,217
25.0
26.2
27.8
31.9
34.6
13.6
9.4
13.4
18.3
8.4
13.4
9.1
12.7
16.3
7.2
14.4
10.5
15.8
24.8
12.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 23.2
Proposal: 0.0
(1) Calendar year. Baseline is current law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c) provide a
refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow taxpayers to
choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and has a standard
deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest, dividends, capital gains,
and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit amount is indexed by the average
growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $19,925, 40%
$38,371, 60% $67,991, 80% $116,859, 90% $169,290, 95% $237,098, 99% $632,966, 99.9% $2,923,051.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014 1
Detail Table
4
Percent of Tax Units
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
5
Income
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
24.2
31.8
35.7
43.6
50.7
36.8
72.8
66.6
64.0
56.3
49.3
62.1
-7.2
-2.4
-0.9
0.2
10.5
5.3
-5.0
-3.7
-2.1
0.6
109.9
100.0
816
590
346
-103
-19,172
-3,298
275.0
19.4
4.1
-0.6
-27.0
-17.2
1.1
1.5
2.2
3.5
-8.3
0.0
1.4
4.7
11.0
21.1
61.7
100.0
7.0
2.1
0.7
-0.1
-7.5
-4.1
9.6
13.2
17.9
21.4
20.4
19.6
47.0
45.2
58.6
86.0
97.0
53.0
54.8
41.4
14.0
3.0
0.9
2.0
7.5
26.0
35.4
2.5
3.8
19.5
84.2
50.5
-856
-2,625
-17,135
-307,358
-1,848,563
-2.7
-5.6
-19.6
-56.1
-67.7
2.7
1.6
-0.5
-12.1
-7.8
18.2
13.3
16.6
13.7
5.0
-0.7
-1.5
-5.4
-17.8
-23.2
24.1
24.6
22.2
13.9
11.1
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, 2014 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 After5
Tax Income
(Dollars)
Average
Federal Tax
6
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
32,445
33,595
32,248
30,634
30,589
161,771
20.1
20.8
19.9
18.9
18.9
100.0
11,625
27,586
48,898
83,092
254,362
81,418
297
3,042
8,420
17,883
71,125
19,228
11,328
24,544
40,478
65,209
183,238
62,190
2.6
11.0
17.2
21.5
28.0
23.6
2.9
7.0
12.0
19.3
59.1
100.0
3.7
8.2
13.0
19.9
55.7
100.0
0.3
3.3
8.7
17.6
69.9
100.0
15,343
7,725
6,061
1,461
146
9.5
4.8
3.8
0.9
0.1
126,648
179,728
316,716
1,731,056
7,958,455
31,393
46,870
87,537
548,371
2,732,042
95,254
132,857
229,179
1,182,685
5,226,413
24.8
26.1
27.6
31.7
34.3
14.8
10.5
14.6
19.2
8.8
14.5
10.2
13.8
17.2
7.6
15.5
11.6
17.1
25.8
12.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 23.2
Proposal: 0.0
(1) Calendar year. Baseline is current law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c)
provide a refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow
taxpayers to choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and
has a standard deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest,
dividends, capital gains, and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit
amount is indexed by the average growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99% $382,124, 99.9%
$1,787,588.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20141
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
28.8
38.1
37.7
44.9
47.4
37.9
66.5
58.9
61.8
55.0
52.5
59.8
-1.0
0.9
0.6
1.2
12.2
5.9
-0.9
1.9
1.9
4.4
92.2
100.0
82
-177
-193
-565
-14,354
-2,123
12.2
-7.4
-3.0
-4.2
-30.6
-19.9
0.6
0.8
2.6
4.1
-8.0
0.0
2.1
6.1
15.0
24.9
51.9
100.0
0.9
-0.8
-0.5
-1.0
-8.7
-4.6
8.4
10.5
17.3
21.6
19.8
18.4
44.0
42.7
56.3
84.2
96.3
55.9
57.3
43.7
15.8
3.7
1.9
3.4
10.9
33.7
44.5
4.2
5.2
20.7
62.2
33.8
-1,239
-3,187
-17,278
-261,139
-1,596,196
-5.3
-9.3
-28.2
-66.4
-75.1
2.9
1.5
-1.5
-10.8
-6.2
18.5
12.5
13.1
7.8
2.8
-1.4
-2.5
-7.8
-22.4
-27.9
24.5
24.4
20.0
11.3
9.3
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, 2014 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
17,338
16,635
14,693
11,840
9,787
71,749
24.2
23.2
20.5
16.5
13.6
100.0
8,939
21,188
36,403
59,738
164,155
46,638
666
2,410
6,480
13,471
46,930
10,683
8,273
18,779
29,923
46,266
117,225
35,955
5,137
2,463
1,825
363
32
7.2
3.4
2.5
0.5
0.0
90,448
128,290
220,487
1,167,870
5,717,077
23,371
34,428
61,306
393,058
2,126,537
67,077
93,862
159,181
774,812
3,590,540
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
7.5
11.4
17.8
22.6
28.6
22.9
4.6
10.5
16.0
21.1
48.0
100.0
5.6
12.1
17.0
21.2
44.5
100.0
1.5
5.2
12.4
20.8
59.9
100.0
25.8
26.8
27.8
33.7
37.2
13.9
9.4
12.0
12.7
5.5
13.4
9.0
11.3
10.9
4.5
15.7
11.1
14.6
18.6
9.0
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 0509-5).
(1) Calendar year. Baseline is current law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c) provide a
refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow taxpayers to
choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and has a standard
deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest, dividends, capital gains,
and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit amount is indexed by the average
growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99% $382,124, 99.9%
$1,787,588.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20141
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
25.7
37.2
37.7
46.2
53.8
43.2
73.5
62.7
62.3
53.7
46.2
56.6
-6.2
-1.3
-1.2
0.2
10.0
6.4
-1.5
-0.9
-1.8
0.6
103.4
100.0
925
398
614
-157
-22,046
-6,548
171.3
10.1
6.0
-0.7
-26.1
-19.4
0.4
0.6
1.8
3.6
-6.4
0.0
0.6
2.3
7.4
19.1
70.5
100.0
6.0
1.1
1.0
-0.2
-7.3
-4.8
9.5
12.3
17.2
20.7
20.5
19.9
50.8
47.2
60.2
86.9
97.3
49.2
52.8
39.8
13.1
2.7
0.9
1.7
6.6
24.2
33.5
2.3
3.1
17.0
80.9
48.9
-1,043
-2,563
-17,390
-316,561
-1,886,155
-2.9
-4.8
-17.3
-53.3
-65.7
3.2
2.3
0.5
-12.4
-8.3
19.0
14.9
19.6
17.1
6.1
-0.7
-1.2
-4.8
-16.6
-22.2
23.7
24.6
22.9
14.6
11.6
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, 2014 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
6,636
8,855
11,532
15,214
19,015
61,925
10.7
14.3
18.6
24.6
30.7
100.0
15,449
35,411
63,113
102,030
304,240
136,599
540
3,939
10,235
21,270
84,530
33,751
14,909
31,473
52,877
80,760
219,709
102,848
9,075
4,934
3,970
1,036
105
14.7
8.0
6.4
1.7
0.2
148,661
206,766
363,199
1,904,848
8,500,613
36,239
53,428
100,471
594,432
2,869,648
112,423
153,338
262,728
1,310,416
5,630,964
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
3.5
11.1
16.2
20.9
27.8
24.7
1.2
3.7
8.6
18.4
68.4
100.0
1.6
4.4
9.6
19.3
65.6
100.0
0.2
1.7
5.7
15.5
76.9
100.0
24.4
25.8
27.7
31.2
33.8
16.0
12.1
17.1
23.3
10.6
16.0
11.9
16.4
21.3
9.3
15.7
12.6
19.1
29.5
14.4
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 0509-5).
(1) Calendar year. Baseline is current law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c) provide a
refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow taxpayers to
choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and has a standard
deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest, dividends, capital gains,
and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit amount is indexed by the average
growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99% $382,124, 99.9%
$1,787,588.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20141
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
12.5
11.1
25.3
23.4
27.4
16.8
86.3
88.6
74.5
76.5
72.6
82.7
-15.5
-8.6
-2.9
-3.3
3.9
-4.7
43.1
43.8
15.5
13.8
-16.2
100.0
2,326
2,522
1,285
2,088
-5,553
1,732
-327.4
76.8
13.2
11.3
-10.8
23.0
8.6
5.7
-2.2
-2.7
-9.5
0.0
5.6
18.9
24.9
25.5
25.1
100.0
16.3
7.8
2.4
2.5
-2.9
3.9
11.3
17.9
20.7
24.9
23.8
20.7
22.5
25.0
42.8
77.6
94.5
77.5
75.0
57.2
22.4
5.6
-3.8
-1.7
4.1
24.4
33.8
6.6
1.1
-3.8
-20.1
-11.2
3,473
2,136
-9,026
-252,886
-1,685,359
11.4
4.9
-11.9
-52.6
-64.8
-1.3
-0.8
-2.1
-5.4
-2.8
12.0
4.5
5.2
3.4
1.1
2.9
1.3
-3.0
-16.7
-22.2
27.9
27.1
22.4
15.0
12.1
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, 2014 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
8,213
7,711
5,352
2,936
1,291
25,605
32.1
30.1
20.9
11.5
5.0
100.0
14,265
32,535
53,424
82,768
193,413
44,717
-710
3,286
9,753
18,500
51,610
7,528
14,975
29,249
43,672
64,268
141,803
37,190
836
234
185
35
3
3.3
0.9
0.7
0.1
0.0
121,470
168,242
298,680
1,516,552
7,596,169
30,435
43,405
76,059
480,738
2,602,794
91,036
124,837
222,621
1,035,813
4,993,375
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-5.0
10.1
18.3
22.4
26.7
16.8
10.2
21.9
25.0
21.2
21.8
100.0
12.9
23.7
24.6
19.8
19.2
100.0
-3.0
13.1
27.1
28.2
34.6
100.0
25.1
25.8
25.5
31.7
34.3
8.9
3.4
4.8
4.7
2.0
8.0
3.1
4.3
3.8
1.5
13.2
5.3
7.3
8.8
4.0
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 0509-5).
(1) Calendar year. Baseline is current law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c) provide a
refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow taxpayers to
choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and has a standard
deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest, dividends, capital gains,
and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit amount is indexed by the average
growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99% $382,124, 99.9%
$1,787,588.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014 1
Detail Table - Tax Units with Children
4
Percent of Tax Units
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
5
Income
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
9.0
10.5
20.5
27.7
35.9
20.1
89.6
89.5
79.4
72.3
64.1
79.5
-17.7
-8.4
-3.8
-2.5
7.1
1.1
-74.0
-70.0
-51.8
-51.7
347.0
100.0
2,934
2,732
2,026
2,097
-16,656
-815
-329.4
67.8
16.1
8.2
-17.3
-3.3
2.5
2.5
2.1
2.5
-9.5
0.0
1.8
5.9
12.7
23.2
56.4
100.0
18.7
7.4
3.1
1.9
-5.1
-0.8
13.0
18.4
22.1
25.1
24.1
23.4
27.9
31.0
51.7
87.7
97.2
72.1
69.0
48.3
12.4
2.8
-2.7
-1.3
4.6
24.0
33.4
-37.1
-10.9
55.9
339.1
205.6
3,372
2,201
-14,193
-359,233
-2,309,402
7.7
3.3
-11.3
-48.1
-62.5
1.8
0.7
-1.4
-10.7
-6.6
17.7
11.4
14.9
12.4
4.2
2.0
0.9
-3.3
-16.0
-21.8
28.0
28.2
25.7
17.3
13.1
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, 2014 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 After5
Tax Income
(Dollars)
Number
(thousands)
Percent of
Total
10,239
10,393
10,382
10,009
8,454
49,780
20.6
20.9
20.9
20.1
17.0
100.0
15,665
36,734
65,963
110,334
330,139
102,631
-891
4,032
12,563
25,626
96,347
24,820
16,555
32,702
53,400
84,709
233,792
77,812
4,468
2,003
1,599
383
36
9.0
4.0
3.2
0.8
0.1
169,045
241,711
432,254
2,245,797
10,608,037
43,882
65,899
125,333
746,688
3,697,751
125,163
175,812
306,921
1,499,109
6,910,286
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.7
11.0
19.1
23.2
29.2
24.2
3.1
7.5
13.4
21.6
54.6
100.0
4.4
8.8
14.3
21.9
51.0
100.0
-0.7
3.4
10.6
20.8
65.9
100.0
26.0
27.3
29.0
33.3
34.9
14.8
9.5
13.5
16.8
7.5
14.4
9.1
12.7
14.8
6.4
15.9
10.7
16.2
23.2
10.8
Average
Federal Tax
6
Rate
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c)
provide a refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow
taxpayers to choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and
has a standard deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest,
dividends, capital gains, and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit
amount is indexed by the average growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99% $382,124, 99.9%
$1,787,588.
(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.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0087
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Law; Taxpayers all choose the alternative tax system
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2014 1
Detail Table - Elderly Tax Units
4
Percent of Tax Units
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
5
Income
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Average Federal Tax Rate
Under the
Proposal
Change (%
Points)
6
Under the
Proposal
29.9
46.0
68.5
85.4
91.5
62.6
62.9
50.3
30.9
14.6
8.4
35.0
2.4
3.4
5.0
7.9
23.9
16.1
0.4
2.1
4.0
8.8
84.6
100.0
-277
-774
-2,019
-5,215
-48,634
-10,240
-93.2
-75.1
-71.7
-53.0
-66.6
-65.5
-0.3
-0.5
-0.7
4.0
-2.5
0.0
0.1
1.3
3.0
14.8
80.7
100.0
-2.4
-3.2
-4.7
-6.9
-17.6
-12.9
0.2
1.1
1.9
6.1
8.9
6.8
91.3
91.1
91.5
94.4
98.1
8.5
8.9
8.5
5.6
1.9
12.9
15.4
20.6
35.2
41.9
9.2
8.5
18.5
48.5
26.4
-11,963
-19,798
-44,045
-385,365
-1,940,185
-55.3
-56.2
-60.1
-75.0
-78.8
3.2
2.7
3.2
-11.6
-8.5
14.1
12.6
23.3
30.7
13.5
-10.5
-12.1
-15.4
-24.0
-27.4
8.5
9.4
10.2
8.0
7.3
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, 2014 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 After5
Tax Income
(Dollars)
Number
(thousands)
Percent of
Total
5,217
8,927
6,483
5,566
5,729
32,167
16.2
27.8
20.2
17.3
17.8
100.0
11,689
23,861
42,973
75,950
276,230
79,440
297
1,031
2,815
9,835
73,069
15,630
11,392
22,831
40,159
66,115
203,161
63,811
2,522
1,413
1,379
414
45
7.8
4.4
4.3
1.3
0.1
114,468
163,898
286,923
1,607,917
7,094,632
21,647
35,260
73,346
513,941
2,460,966
92,821
128,638
213,577
1,093,975
4,633,666
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.5
4.3
6.6
13.0
26.5
19.7
2.4
8.3
10.9
16.5
61.9
100.0
2.9
9.9
12.7
17.9
56.7
100.0
0.3
1.8
3.6
10.9
83.3
100.0
18.9
21.5
25.6
32.0
34.7
11.3
9.1
15.5
26.1
12.5
11.4
8.9
14.4
22.1
10.1
10.9
9.9
20.1
42.4
22.0
Average
Federal Tax
6
Rate
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 law. Proposal is effective Jan. 1, 2011 and would (a) eliminate the AMT;(b) repeal the income and payroll tax exclusion for employer-sponsored health insurance; (c)
provide a refundable tax credit equal to $2,300 ($5,700 for families) for the purchase of health insurance; (d) repeal the corporate income tax; (e) impose an 8.5% business consumption tax (BCT); and (f) allow
taxpayers to choose between the current tax system and an alternative simplified tax system. The alternative tax system eliminates all adjustments to income, itemized deductions, tax credits, and the estate tax and
has a standard deduction of $12,500 ($25,000 for joint returns), personal exemptions of $3,500, and rates of 10 percent up to $50,000 ($100,000 for joint returns) and 25 percent above that level. Interest,
dividends, capital gains, and non-wage business income would be excluded from tax under the alternative system. Dollar values for the alternative tax system are indexed for inflation; the refundable credit
amount is indexed by the average growth rate of CPI and medical care expenses. Taxpayers are assumed to all opt into the alternative system.
(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 2009 dollars): 20% $13,694, 40% $25,631, 60% $43,537, 80% $71,347, 90% $102,829, 95% $145,557, 99% $382,124, 99.9%
$1,787,588.
(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.