13‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0371
Exempt All Capital Income from Taxation
Baseline: Current Law
Distribution by Cash Income Percentile, 2011 1
Cash Income Level (thousands of 2011 dollars) 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Total Returns 4
Number (thousands)
Returns with Zero Income Tax Liability 4
Percent
Baseline
All Returns Elderly (thousands)
(Percent)
Retuns with Zero Income Tax Liability Only Under Proposal 4
Proposal
All Returns Elderly (thousands)
(Percent)
Returns
All Returns (thousands)
Average Federal Tax Change ($)
Elderly (Percent)
All Returns Elderly 43,661
36,819
32,344
26,761
23,243
163,869
26.6
22.5
19.7
16.3
14.2
100.0
40,740
22,206
9,706
1,956
443
76,077
24.0
31.4
26.1
21.1
21.2
26.1
40,754
22,652
10,528
2,525
1,068
78,544
24.0
32.2
30.7
35.2
47.1
27.7
37
493
860
588
631
2,609
20.0
67.0
82.8
81.8
64.9
74.4
‐241
‐341
‐1,001
‐3,181
‐55,415
‐14,521
‐231
‐288
‐1,031
‐3,313
‐36,751
‐9,008
11,775
5,676
4,619
1,173
120
7.2
3.5
2.8
0.7
0.1
284
57
78
24
3
21.0
16.1
29.2
8.8
6.4
512
167
265
125
22
49.0
47.1
47.1
39.3
33.2
234
110
187
101
20
81.8
63.2
54.6
46.6
37.0
‐7,312
‐11,396
‐27,337
‐266,603
‐995,512
‐8,097
‐11,521
‐28,791
‐207,811
‐860,002
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Cash Income Level (thousands of 2011 dollars) Tax Units with Tax Increase or Cut 4
With Tax Cut
2,3
Pct of Tax Units
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Avg Tax Cut
Elderly Tax Units with Tax Increase or Cut 4
With Tax Increase
Avg Tax Pct of Tax Units
Increase
Average Federal Tax Change ($)
With Tax Cut
Pct of Elderly Avg Tax Cut
Tax Units
With Tax Increase
Pct of Elderly Avg Tax Increase
Tax Units
Average Federal Tax Change for Elderly ($)
1.0
10.8
30.1
54.5
74.4
28.1
50
119
253
511
6,558
2,690
0.1
1.1
3.1
6.7
12.6
3.8
494
319
333
414
676
545
0
‐9
‐66
‐250
‐4,797
‐735
0.2
11.6
47.6
76.3
85.7
35.5
145
209
523
1,187
11,446
3,996
*
0.8
3.0
6.5
8.8
3.0
**
289
369
494
630
515
0
‐22
‐238
‐874
‐9,759
‐1,402
70.0
77.8
78.4
87.1
93.7
993
1,949
6,544
71,429
429,587
10.7
13.6
16.8
9.5
3.8
487
505
787
3,231
29,400
‐643
‐1,447
‐5,000
‐61,891
‐401,554
83.8
86.0
88.1
93.6
97.3
2,879
5,203
12,806
95,906
505,734
9.3
9.7
8.2
3.5
1.9
448
489
768
5,249
43,337
‐2,370
‐4,427
‐11,219
‐89,632
‐491,399
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05.
** Insufficent data.
(1) Calendar year. Baseline is current law. Proposal would exclude interest income, dividends, and gains from sales of capital assets from gross income and repeal the deduction for investment interest. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $16,812; 40% $33,542; 60% $59,486; 80% $103,465; 90% $163,173; 95% $210,998; 99% $532,613; 99.9% $2,178,886.
(4) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.