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 T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Summary Table
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
29.9
31.1
30.9
28.8
25.0
30.6
27.4
27.9
39.4
61.7
80.3
30.2
With Tax
Increase
65.7
65.4
68.2
71.0
74.9
69.3
72.6
72.1
60.6
38.3
19.7
68.6
Percent
Change in
After-Tax
Income 4
5.5
0.5
-1.0
-1.5
-2.0
-1.7
-2.2
-1.9
2.4
9.4
22.2
2.8
Share of Total
Federal Tax
Change
1.7
0.7
-1.8
-2.8
-3.6
-7.1
-8.3
-16.6
12.8
20.3
104.0
100.0
Average
Federal Tax
Change ($)
-298
-81
245
494
788
899
1,611
2,123
-5,514
-50,859
-501,861
-1,786
Average Federal Tax Rate
Change (%
Points)
-5.2
-0.5
0.9
1.3
1.7
1.4
1.7
1.5
-1.8
-7.0
-15.8
-2.2
5
Under the
Proposal
0.6
3.9
9.6
13.9
17.2
19.1
21.1
23.4
22.6
18.3
12.8
18.7
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 policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation
after 2009, and makes 2009 estate tax law permanent. 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 choose the system that miniizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
29.9
31.1
30.9
28.8
25.0
30.6
27.4
27.9
39.4
61.7
80.3
30.2
65.7
65.4
68.2
71.0
74.9
69.3
72.6
72.1
60.6
38.3
19.7
68.6
Percent
Change in
After-Tax
Income 4
5.5
0.5
-1.0
-1.5
-2.0
-1.7
-2.2
-1.9
2.4
9.4
22.2
2.8
Share of Total
Federal Tax
Change
1.7
0.7
-1.8
-2.8
-3.6
-7.1
-8.3
-16.6
12.8
20.3
104.0
100.0
Average Federal Tax Change
Dollars
-298
-81
245
494
788
899
1,611
2,123
-5,514
-50,859
-501,861
-1,786
Percent
-89.7
-11.5
10.7
10.6
10.6
7.7
9.0
6.7
-7.5
-27.7
-55.2
-10.5
Share of Federal Taxes
Change (%
Points)
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
0.0
0.6
2.2
3.5
4.4
11.6
11.8
31.1
18.6
6.2
9.9
100.0
-5.2
-0.5
0.9
1.3
1.7
1.4
1.7
1.5
-1.8
-7.0
-15.8
-2.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.7
3.0
4.3
4.7
4.8
11.4
10.4
24.9
15.3
6.3
14.4
100.0
0.9
3.7
5.0
5.2
5.1
11.8
10.6
24.6
14.6
6.0
13.0
100.0
0.2
0.6
1.8
2.8
3.5
9.7
9.6
26.1
18.0
7.7
19.8
100.0
-0.2
0.0
0.4
0.7
0.8
2.0
2.1
5.0
0.6
-1.5
-9.9
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
16,395
24,950
21,464
16,563
13,107
22,796
14,829
22,547
6,681
1,152
598
161,771
Percent of
Total
10.1
15.4
13.3
10.2
8.1
14.1
9.2
13.9
4.1
0.7
0.4
100.0
Average
Income
(Dollars)
5,731
15,992
26,534
37,088
47,849
65,785
92,580
145,308
302,126
725,130
3,175,497
81,418
Average
Federal Tax
Burden
(Dollars)
332
703
2,292
4,651
7,428
11,665
17,875
31,842
73,926
183,574
909,696
16,992
Average AfterTax Income 4
(Dollars)
5,400
15,289
24,241
32,437
40,420
54,120
74,704
113,466
228,199
541,556
2,265,801
64,425
Average
Federal Tax
Rate 5
5.8
4.4
8.6
12.5
15.5
17.7
19.3
21.9
24.5
25.3
28.7
20.9
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 policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation after 2009, and makes 2009 estate tax law
permanent. 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 choose the tax system that minimizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
0.6
3.9
9.6
13.9
17.2
19.1
21.1
23.4
22.6
18.3
12.8
18.7
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
29.1
31.1
32.8
29.4
24.2
35.9
31.9
37.4
59.1
77.0
87.0
31.9
65.5
63.9
65.7
70.2
75.6
64.0
68.0
62.6
40.9
23.0
13.0
65.8
Percent
Change in
After-Tax
Income 4
3.5
0.5
0.0
-0.4
-1.2
-0.2
-0.4
2.0
10.7
18.9
31.5
3.7
Share of Total
Federal Tax
Change
2.2
1.2
0.1
-1.1
-2.8
-0.7
-1.2
8.4
21.5
15.4
56.5
100.0
Average Federal Tax Change
Dollars
-185
-78
-5
134
461
75
305
-2,124
-24,346
-98,217
-654,513
-1,376
Percent
-37.0
-6.2
-0.1
2.2
5.0
0.5
1.4
-6.2
-31.6
-51.7
-69.5
-14.2
Share of Federal Taxes
Change (%
Points)
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
0.6
3.1
6.5
8.3
9.9
21.8
14.5
21.0
7.7
2.4
4.1
100.0
-3.2
-0.5
0.0
0.4
1.0
0.1
0.3
-1.5
-8.0
-13.8
-21.7
-3.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.0
7.4
9.3
8.8
8.7
17.9
10.8
16.5
8.0
3.3
7.7
100.0
2.3
8.6
10.3
9.3
8.9
17.7
10.4
15.8
7.5
3.1
6.7
100.0
0.9
2.8
5.6
7.0
8.1
18.6
12.3
19.2
9.7
4.2
11.5
100.0
-0.2
0.3
0.9
1.3
1.8
3.2
2.2
1.8
-2.0
-1.9
-7.4
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
11,785
15,609
11,803
7,961
6,076
9,192
3,953
3,918
873
155
85
71,749
16.4
21.8
16.5
11.1
8.5
12.8
5.5
5.5
1.2
0.2
0.1
100.0
Average
Income
(Dollars)
5,738
15,863
26,403
37,030
47,870
65,017
91,214
140,835
305,307
710,840
3,020,093
46,638
Average
Federal Tax
Burden
(Dollars)
500
1,261
3,314
6,123
9,253
14,078
21,563
34,143
76,959
190,125
941,898
9,696
Average AfterTax Income 4
(Dollars)
5,238
14,602
23,089
30,908
38,617
50,939
69,651
106,692
228,348
520,715
2,078,195
36,942
Average
Federal Tax
Rate 5
8.7
8.0
12.6
16.5
19.3
21.7
23.6
24.2
25.2
26.8
31.2
20.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation after 2009, and makes 2009 estate tax law
permanent. 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 choose the tax system that minimizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
5.5
7.5
12.5
16.9
20.3
21.8
24.0
22.7
17.2
12.9
9.5
17.8
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
37.7
33.8
37.2
39.9
33.1
32.1
28.1
26.7
35.9
59.1
79.0
32.5
60.7
65.5
62.7
59.9
66.8
67.8
71.9
73.3
64.1
41.0
21.0
67.3
Percent
Change in
After-Tax
Income 4
17.2
1.5
0.0
-0.2
-1.4
-1.9
-2.4
-2.6
1.0
7.9
20.4
3.1
Share of Total
Federal Tax
Change
0.8
0.5
0.0
-0.1
-1.2
-5.1
-8.1
-25.5
6.2
20.4
111.4
100.0
Average Federal Tax Change
Dollars
-789
-245
8
61
581
1,114
1,835
2,960
-2,247
-43,090
-459,411
-3,262
Share of Federal Taxes
Average Federal Tax Rate5
Percent
Change (%
Points)
Under the
Proposal
Change (%
Points)
Under the
Proposal
-296.7
-53.9
0.6
2.2
11.7
11.9
11.5
9.5
-3.1
-23.6
-51.9
-11.0
-0.1
-0.1
0.0
0.1
0.3
1.2
2.0
6.8
2.0
-1.4
-10.9
0.0
-0.1
0.1
0.4
0.8
1.4
5.9
9.7
36.5
24.3
8.2
12.8
100.0
-16.3
-1.5
0.0
0.2
1.2
1.7
2.0
2.0
-0.7
-5.9
-14.6
-2.4
-10.8
1.3
4.8
7.6
11.5
15.6
19.1
23.3
23.6
19.2
13.6
19.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.7
1.5
1.9
2.3
7.3
9.9
30.2
19.9
8.2
18.2
100.0
0.2
0.9
1.8
2.3
2.6
8.0
10.4
30.4
19.2
7.9
16.7
100.0
0.0
0.1
0.3
0.7
1.1
4.7
7.8
29.7
22.3
9.5
23.6
100.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,149
3,779
4,683
4,384
4,031
9,255
8,936
17,410
5,581
957
490
61,925
3.5
6.1
7.6
7.1
6.5
15.0
14.4
28.1
9.0
1.6
0.8
100.0
Average
Income
(Dollars)
4,856
16,580
26,660
37,167
47,976
66,869
93,299
146,871
301,626
728,191
3,139,514
136,599
Average
Federal Tax
Burden
(Dollars)
266
456
1,281
2,770
4,951
9,335
15,963
31,311
73,429
182,882
884,941
29,636
Average AfterTax Income 4
(Dollars)
4,590
16,125
25,379
34,396
43,025
57,533
77,336
115,560
228,198
545,309
2,254,574
106,964
Average
Federal Tax
Rate 5
5.5
2.8
4.8
7.5
10.3
14.0
17.1
21.3
24.3
25.1
28.2
21.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation after 2009, and makes 2009 estate tax law
permanent. 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 choose the tax system that minimizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
25.9
28.1
19.2
15.3
14.6
14.8
12.9
13.0
41.9
59.5
79.5
19.6
72.4
70.5
80.4
84.7
85.2
85.2
87.1
87.0
58.1
40.5
20.5
79.9
Percent
Change in
After-Tax
Income 4
5.5
-0.3
-4.3
-5.1
-4.4
-4.3
-4.9
-4.3
4.0
8.1
22.8
-2.7
Share of Total
Federal Tax
Change
-3.4
1.1
19.9
24.9
18.1
33.8
21.8
17.9
-5.9
-4.6
-23.0
100.0
Average Federal Tax Change
Dollars
-386
53
1,128
1,698
1,809
2,333
3,587
4,489
-9,045
-43,270
-481,899
1,036
Percent
80.5
-6.3
194.3
47.9
26.9
20.8
19.2
14.3
-12.5
-26.0
-55.6
16.2
Share of Federal Taxes
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-1.1
-2.2
4.2
10.7
11.9
27.4
18.9
19.9
5.8
1.8
2.6
100.0
-5.9
0.3
4.2
4.6
3.8
3.6
3.9
3.3
-3.0
-6.2
-16.2
2.3
-13.3
-5.0
6.4
14.2
18.0
20.9
24.3
26.3
21.1
17.6
12.9
16.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.3
7.4
10.9
12.6
11.0
21.8
13.0
12.6
4.6
1.7
3.3
100.0
1.7
9.1
12.5
13.3
11.0
21.1
12.1
11.3
4.0
1.6
2.7
100.0
-0.7
-2.7
1.7
8.4
10.9
26.4
18.5
20.3
7.7
2.9
6.7
100.0
Change (%
Points)
-0.4
0.5
2.5
2.3
1.0
1.0
0.5
-0.3
-1.9
-1.1
-4.2
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,328
5,290
4,676
3,883
2,649
3,843
1,615
1,055
174
28
13
25,605
9.1
20.7
18.3
15.2
10.4
15.0
6.3
4.1
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
6,522
15,961
26,716
37,061
47,582
64,966
91,867
136,677
299,733
701,148
2,976,702
44,717
Average
Federal Tax
Burden
(Dollars)
-479
-847
581
3,546
6,732
11,221
18,691
31,481
72,406
166,615
866,581
6,393
Average AfterTax Income 4
(Dollars)
7,001
16,808
26,135
33,515
40,851
53,745
73,176
105,196
227,327
534,533
2,110,121
38,325
Average
Federal Tax
Rate 5
-7.4
-5.3
2.2
9.6
14.2
17.3
20.4
23.0
24.2
23.8
29.1
14.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation after 2009, and makes 2009 estate tax law
permanent. 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 choose the tax system that minimizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
26.0
28.9
17.9
12.9
12.1
11.5
8.3
10.4
23.3
50.3
73.5
16.1
68.5
70.6
81.9
87.0
87.9
88.5
91.7
89.6
76.8
49.7
26.6
83.5
Percent
Change in
After-Tax
Income 4
7.6
-0.6
-4.7
-5.8
-5.3
-5.6
-6.0
-5.8
-1.8
5.4
19.1
-1.0
Share of Total
Federal Tax
Change
-3.7
1.6
17.8
24.6
22.2
57.9
66.1
166.6
31.3
-35.6
-246.6
100.0
Average Federal Tax Change
Dollars
-525
111
1,264
1,992
2,228
3,088
4,583
6,589
3,961
-28,666
-421,646
793
Percent
76.0
-7.4
-1,273.4
68.5
36.4
29.2
26.7
20.8
5.2
-14.8
-45.5
3.7
Share of Federal Taxes
Change (%
Points)
-0.1
0.1
0.6
0.8
0.7
1.8
2.0
4.9
0.3
-1.6
-9.5
0.0
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.3
-0.7
0.6
2.2
3.0
9.2
11.2
34.6
22.4
7.3
10.6
100.0
-8.4
0.7
4.8
5.4
4.7
4.7
4.9
4.5
1.3
-4.0
-13.4
0.8
-19.4
-8.6
4.4
13.2
17.4
20.7
23.3
26.2
26.5
22.9
16.1
21.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,749
5,590
5,566
4,882
3,929
7,405
5,694
9,988
3,118
490
231
49,780
5.5
11.2
11.2
9.8
7.9
14.9
11.4
20.1
6.3
1.0
0.5
100.0
Average
Income
(Dollars)
6,253
16,191
26,627
37,104
47,874
66,154
93,283
146,051
300,423
724,847
3,138,297
102,631
Average
Federal Tax
Burden
(Dollars)
-690
-1,500
-99
2,906
6,116
10,579
17,188
31,715
75,605
194,362
926,669
21,429
Average AfterTax Income 4
(Dollars)
6,943
17,691
26,726
34,198
41,758
55,574
76,095
114,336
224,818
530,485
2,211,628
81,202
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-11.0
-9.3
-0.4
7.8
12.8
16.0
18.4
21.7
25.2
26.8
29.5
20.9
0.3
1.8
2.9
3.6
3.7
9.6
10.4
28.6
18.3
7.0
14.2
100.0
0.5
2.5
3.7
4.1
4.1
10.2
10.7
28.3
17.3
6.4
12.6
100.0
-0.2
-0.8
-0.1
1.3
2.3
7.3
9.2
29.7
22.1
8.9
20.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation after 2009, and makes 2009 estate tax law
permanent. 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 choose the tax system that minimizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
9-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0092
Major Tax Provisions of the Roadmap for America's Future Act of 2010
Baseline: Current Policy; Taxpayers choose their preferred tax system
Distribution of Federal Tax Change by Cash Income Level, 2014 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
34.1
30.8
52.7
66.0
68.8
75.9
79.9
85.2
86.7
87.7
93.9
59.9
57.8
62.6
45.0
33.4
30.8
24.2
20.0
14.9
13.3
12.3
6.1
37.7
Percent
Change in
After-Tax
Income 4
7.6
1.9
3.0
4.7
4.6
5.6
6.4
10.0
14.4
20.1
29.8
12.1
Share of Total
Federal Tax
Change
0.4
0.8
1.7
2.2
1.8
5.5
5.6
15.7
16.0
10.9
39.5
100.0
Average Federal Tax Change
Dollars
-452
-306
-768
-1,626
-2,050
-3,369
-5,134
-12,059
-34,644
-111,076
-685,872
-8,008
Share of Federal Taxes
Average Federal Tax Rate 5
Percent
Change (%
Points)
Under the
Proposal
Change (%
Points)
-218.0
-83.4
-70.9
-80.4
-65.5
-53.3
-44.2
-48.4
-52.4
-63.3
-73.2
-60.2
-0.4
-0.3
-0.4
-0.8
-0.2
1.1
3.1
5.8
3.6
-0.8
-10.6
0.0
-0.3
0.2
1.0
0.8
1.5
7.3
10.6
25.3
22.0
9.6
21.9
100.0
-7.3
-1.9
-2.9
-4.4
-4.3
-5.1
-5.6
-8.3
-11.3
-15.3
-21.2
-10.1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.5
4.3
5.7
5.0
4.3
10.9
10.0
19.0
14.3
7.2
18.8
100.0
0.6
5.1
6.6
5.7
4.8
11.9
10.5
19.0
13.5
6.6
16.1
100.0
0.1
0.6
1.4
1.6
1.7
6.2
7.6
19.5
18.4
10.4
32.5
100.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2014 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,141
6,773
5,562
3,452
2,280
4,211
2,785
3,346
1,188
253
148
32,167
6.7
21.1
17.3
10.7
7.1
13.1
8.7
10.4
3.7
0.8
0.5
100.0
Average
Income
(Dollars)
6,199
16,256
26,342
36,971
47,737
66,263
91,958
145,447
307,476
728,374
3,239,966
79,440
Average
Federal Tax
Burden
(Dollars)
208
366
1,084
2,022
3,128
6,317
11,614
24,932
66,155
175,553
936,840
13,295
Average AfterTax Income 4
(Dollars)
5,992
15,890
25,258
34,949
44,609
59,945
80,343
120,515
241,321
552,821
2,303,126
66,146
Average
Federal Tax
Rate 5
3.4
2.3
4.1
5.5
6.6
9.5
12.6
17.1
21.5
24.1
28.9
16.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current policy and makes the 2001 and 2003 individual income tax cuts permanent, indexes the parameters of the AMT for inflation after 2009, and makes 2009 estate tax law
permanent. 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 choose the tax system that minimizes tax liability.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
-4.0
0.4
1.2
1.1
2.3
4.5
7.1
8.9
10.3
8.9
7.8
6.7