12-May-09
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 T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 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
1.0
0.4
0.1
0.1
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.2
With Tax
Increase
8.1
16.0
23.8
36.0
48.1
58.1
63.2
66.1
64.6
57.8
53.9
42.3
Percent
Change in
After-Tax
Income 4
-0.8
-1.2
-1.4
-1.7
-1.9
-2.1
-2.1
-1.8
-1.1
-0.4
-0.1
-1.4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.4
2.6
4.9
6.3
6.1
16.0
14.8
33.8
12.6
1.8
0.8
100.0
46
221
400
645
883
1,288
1,751
2,324
2,632
2,492
2,314
1,108
Average Federal Tax Rate 5
Change (%
Points)
0.7
1.2
1.3
1.5
1.6
1.7
1.6
1.4
0.8
0.3
0.1
1.1
Under the
Proposal
3.8
5.3
9.7
14.1
17.7
20.9
23.6
26.0
28.5
28.6
32.0
24.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-2).
Number of AMT Taxpayers (millions). Baseline: 43.0
Proposal: 45.3
(1) Calendar year. Baseline is current law. Proposal imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th
percentile of premiums; $6,004 for single coverage, $11,974 for single-plus-one coverage, and $15,290 for family coverage.
(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.
12-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 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
1.0
0.4
0.1
0.1
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.2
8.1
16.0
23.8
36.0
48.1
58.1
63.2
66.1
64.6
57.8
53.9
42.3
Percent Change
in After-Tax
Income 4
-0.8
-1.2
-1.4
-1.7
-1.9
-2.1
-2.1
-1.8
-1.1
-0.4
-0.1
-1.4
Share of Total
Federal Tax
Change
0.4
2.6
4.9
6.3
6.1
16.0
14.8
33.8
12.6
1.8
0.8
100.0
Average Federal Tax Change
Dollars
46
221
400
645
883
1,288
1,751
2,324
2,632
2,492
2,314
1,108
Percent
23.6
29.1
15.6
11.9
10.0
8.8
7.5
5.6
2.7
1.1
0.2
4.7
Share of Federal Taxes
Change (%
Points)
0.0
0.1
0.2
0.2
0.1
0.3
0.3
0.3
-0.4
-0.3
-0.8
0.0
Under the
Proposal
0.1
0.5
1.6
2.6
3.0
8.8
9.5
28.3
21.1
7.4
17.0
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.7
1.2
1.3
1.5
1.6
1.7
1.6
1.4
0.8
0.3
0.1
1.1
Under the
Proposal
3.8
5.3
9.7
14.1
17.7
20.9
23.6
26.0
28.5
28.6
32.0
24.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2019 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)
15,216
22,318
23,036
18,537
13,113
23,535
16,057
27,562
9,079
1,336
656
171,212
Percent of
Total
8.9
13.0
13.5
10.8
7.7
13.8
9.4
16.1
5.3
0.8
0.4
100.0
Average
Income
(Dollars)
6,340
18,629
30,736
42,822
55,035
75,739
106,668
168,288
347,637
831,071
3,459,830
101,380
Average
Federal Tax
Burden
(Dollars)
196
761
2,570
5,410
8,868
14,562
23,395
41,435
96,589
234,777
1,104,543
23,804
Average AfterTax Income 4
(Dollars)
6,144
17,868
28,166
37,411
46,167
61,177
83,272
126,853
251,048
596,294
2,355,287
77,576
Average
Federal Tax
Rate 5
3.1
4.1
8.4
12.6
16.1
19.2
21.9
24.6
27.8
28.3
31.9
23.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
2.4
4.1
4.6
4.2
10.3
9.9
26.7
18.2
6.4
13.1
100.0
0.7
3.0
4.9
5.2
4.6
10.8
10.1
26.3
17.2
6.0
11.6
100.0
0.1
0.4
1.5
2.5
2.9
8.4
9.2
28.0
21.5
7.7
17.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
Number of AMT Taxpayers (millions). Baseline: 43.0
Proposal: 45.3
(1) Calendar year. Baseline is current law. Proposal imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums; $6,004 for single coverage, $11,974
for single-plus-one coverage, and $15,290 for family coverage.
(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.
12-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
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
0.2
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
8.1
13.6
21.0
34.7
48.8
61.3
60.7
53.6
43.4
37.5
32.3
32.5
Percent
Change in
After-Tax
4
Income
-0.9
-0.9
-0.9
-1.1
-1.5
-1.8
-1.4
-0.8
-0.3
-0.1
0.0
-1.1
Share of Total
Federal Tax
Change
1.6
5.6
9.0
10.5
11.6
29.2
15.8
13.7
2.5
0.3
0.2
100.0
Average Federal Tax Change
Dollars
54
151
246
406
690
1,062
1,094
981
768
688
618
484
Percent
14.0
9.9
7.5
6.7
6.9
6.3
4.0
2.2
0.7
0.3
0.1
3.6
Share of Federal Taxes
Change (%
Points)
0.0
0.1
0.2
0.2
0.2
0.4
0.1
-0.3
-0.3
-0.1
-0.4
0.0
Under the
Proposal
0.5
2.2
4.5
5.9
6.3
17.4
14.4
22.5
12.0
4.3
10.1
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.8
0.8
0.8
1.0
1.3
1.4
1.0
0.6
0.2
0.1
0.0
0.8
Under the
Proposal
6.9
9.1
11.5
15.2
19.5
24.0
26.9
28.0
29.7
30.1
35.0
23.3
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2019
Cash Income Level
(thousands of 2009
2
dollars)
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
10,898
13,747
13,575
9,599
6,219
10,179
5,356
5,192
1,217
184
89
76,642
14.2
17.9
17.7
12.5
8.1
13.3
7.0
6.8
1.6
0.2
0.1
100.0
Average
Income
(Dollars)
6,340
18,508
30,687
42,672
55,020
75,275
105,607
163,607
350,420
811,418
3,403,318
59,235
Average
Federal Tax
Burden
(Dollars)
382
1,524
3,269
6,076
10,019
16,989
27,328
44,849
103,194
243,358
1,190,280
13,309
Average After4
Tax Income
(Dollars)
5,958
16,984
27,418
36,596
45,000
58,286
78,279
118,758
247,226
568,061
2,213,038
45,926
Average
Federal Tax
5
Rate
6.0
8.2
10.7
14.2
18.2
22.6
25.9
27.4
29.5
30.0
35.0
22.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.5
5.6
9.2
9.0
7.5
16.9
12.5
18.7
9.4
3.3
6.7
100.0
1.8
6.6
10.6
10.0
8.0
16.9
11.9
17.5
8.5
3.0
5.6
100.0
0.4
2.1
4.4
5.7
6.1
17.0
14.4
22.8
12.3
4.4
10.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
(1) Calendar year. Baseline is current law. Proposal imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums; $6,004 for single coverage, $11,974
for single-plus-one coverage, and $15,290 for family coverage.
(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.
12-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
2
dollars)
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
3.7
1.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.1
0.0
0.2
12.6
22.0
25.2
29.4
37.9
52.2
64.5
69.7
68.7
61.6
58.2
54.7
Percent
Change in
After-Tax
4
Income
-0.9
-2.0
-1.9
-1.7
-1.8
-2.2
-2.5
-2.1
-1.2
-0.5
-0.1
-1.5
Share of Total
Federal Tax
Change
0.1
0.9
1.9
2.3
2.5
9.6
14.8
45.7
18.4
2.6
1.2
100.0
Average Federal Tax Change
Dollars
Percent
44
371
544
670
860
1,416
2,170
2,721
2,973
2,829
2,634
1,920
24.2
105.5
30.2
16.9
13.5
12.7
10.6
6.7
3.1
1.2
0.3
4.5
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.1
0.3
0.4
0.7
-0.4
-0.3
-0.9
0.0
Under the
Proposal
0.0
0.1
0.4
0.7
0.9
3.7
6.7
31.4
26.3
9.2
20.5
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.8
2.0
1.8
1.6
1.6
1.9
2.0
1.6
0.9
0.3
0.1
1.1
Under the
Proposal
4.3
3.8
7.6
10.8
13.1
16.5
21.0
25.4
28.4
28.4
31.5
25.8
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2019
Cash Income Level
(thousands of 2009
2
dollars)
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
2,017
3,019
4,259
4,182
3,579
8,282
8,356
20,595
7,584
1,106
542
63,816
3.2
4.7
6.7
6.6
5.6
13.0
13.1
32.3
11.9
1.7
0.9
100.0
Average
Income
(Dollars)
5,266
18,993
30,922
43,101
55,177
76,619
107,732
170,416
346,930
834,311
3,418,069
172,338
Average
Federal Tax
Burden
(Dollars)
182
352
1,804
3,967
6,370
11,200
20,491
40,598
95,560
233,855
1,073,709
42,570
Average After4
Tax Income
(Dollars)
5,084
18,642
29,117
39,134
48,807
65,419
87,240
129,818
251,369
600,456
2,344,360
129,769
Average
Federal Tax
5
Rate
3.5
1.9
5.8
9.2
11.5
14.6
19.0
23.8
27.5
28.0
31.4
24.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.5
1.2
1.6
1.8
5.8
8.2
31.9
23.9
8.4
16.8
100.0
0.1
0.7
1.5
2.0
2.1
6.5
8.8
32.3
23.0
8.0
15.3
100.0
0.0
0.0
0.3
0.6
0.8
3.4
6.3
30.8
26.7
9.5
21.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
(1) Calendar year. Baseline is current law. Proposal imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums; $6,004 for single coverage, $11,974
for single-plus-one coverage, and $15,290 for family coverage.
(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.
12-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
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
2.4
0.9
0.2
0.0
0.1
0.2
0.0
0.0
0.0
0.0
0.0
0.4
3.5
17.4
28.9
43.5
56.9
61.4
64.3
60.1
42.2
47.4
34.7
39.5
Percent
Change in
After-Tax
4
Income
-0.1
-1.5
-2.3
-2.9
-2.6
-2.5
-2.1
-1.3
-0.5
-0.2
-0.1
-2.0
Share of Total
Federal Tax
Change
0.0
5.9
12.8
18.7
13.9
25.6
12.9
9.0
0.9
0.2
0.1
100.0
Average Federal Tax Change
Dollars
Percent
4
291
673
1,087
1,209
1,476
1,663
1,541
1,153
1,280
1,141
921
-0.6
-27.3
58.8
21.1
13.4
10.0
6.9
3.8
1.2
0.6
0.1
9.7
Share of Federal Taxes
Change (%
Points)
0.1
0.7
1.0
0.9
0.3
0.1
-0.5
-1.2
-0.6
-0.2
-0.5
0.0
Under the
Proposal
-0.6
-1.4
3.1
9.5
10.4
25.0
17.8
21.7
6.8
2.4
5.2
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.1
1.6
2.2
2.5
2.2
2.0
1.6
1.0
0.3
0.2
0.0
1.7
Under the
Proposal
-10.0
-4.1
5.9
14.5
18.7
21.7
24.7
26.7
27.1
25.9
32.4
18.9
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2019
Cash Income Level
(thousands of 2009
2
dollars)
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
2,183
5,310
4,952
4,473
2,986
4,521
2,018
1,518
208
32
14
28,273
7.7
18.8
17.5
15.8
10.6
16.0
7.1
5.4
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
7,344
18,744
30,697
42,878
54,861
75,156
105,144
157,302
353,325
832,114
3,377,088
55,137
Average
Federal Tax
Burden
(Dollars)
-741
-1,064
1,146
5,148
9,060
14,805
24,288
40,516
94,701
214,208
1,094,351
9,476
Average After4
Tax Income
(Dollars)
8,085
19,808
29,551
37,731
45,802
60,351
80,856
116,786
258,624
617,907
2,282,736
45,661
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-10.1
-5.7
3.7
12.0
16.5
19.7
23.1
25.8
26.8
25.7
32.4
17.2
1.0
6.4
9.8
12.3
10.5
21.8
13.6
15.3
4.7
1.7
3.0
100.0
1.4
8.2
11.3
13.1
10.6
21.1
12.6
13.7
4.2
1.6
2.5
100.0
-0.6
-2.1
2.1
8.6
10.1
25.0
18.3
23.0
7.4
2.6
5.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
(1) Calendar year. Baseline is current law. Proposal imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums; $6,004 for single coverage, $11,974
for single-plus-one coverage, and $15,290 for family coverage.
(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.
12-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 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
5.8
1.5
0.2
0.1
0.1
0.2
0.0
0.0
0.0
0.0
0.0
0.5
3.7
21.1
30.2
43.4
55.3
63.4
72.3
80.0
77.8
70.2
67.4
55.5
Percent Change
in After-Tax
Income 4
0.3
-1.9
-2.7
-3.1
-2.9
-2.9
-3.0
-2.6
-1.5
-0.6
-0.2
-2.0
Share of Total
Federal Tax
Change
-0.1
2.1
4.5
6.2
5.1
13.7
14.2
36.8
14.5
2.0
0.9
100.0
Average Federal Tax Change
Dollars
Percent
-22
394
799
1,198
1,322
1,811
2,489
3,328
3,620
3,557
3,363
1,927
2.2
-21.0
130.2
25.1
15.2
12.9
10.8
7.8
3.7
1.4
0.3
6.3
Share of Federal Taxes
Change (%
Points)
0.0
0.2
0.3
0.3
0.2
0.4
0.4
0.4
-0.6
-0.4
-1.0
0.0
Under the
Proposal
-0.2
-0.5
0.5
1.9
2.3
7.2
8.7
30.3
24.4
8.5
16.9
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.3
2.1
2.6
2.8
2.4
2.4
2.3
2.0
1.0
0.4
0.1
1.5
Under the
Proposal
-14.6
-7.9
4.6
13.9
18.2
20.9
23.8
27.2
29.5
30.1
33.2
25.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2019 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
2,546
5,377
5,600
5,184
3,885
7,565
5,696
11,048
3,997
567
253
51,871
4.9
10.4
10.8
10.0
7.5
14.6
11.0
21.3
7.7
1.1
0.5
100.0
Average
Income
(Dollars)
7,027
18,656
30,657
42,987
55,138
75,999
107,089
169,242
346,789
831,182
3,382,075
124,878
Average
Federal Tax
Burden
(Dollars)
-1,007
-1,876
614
4,783
8,730
14,083
23,007
42,699
98,691
246,974
1,118,022
30,418
Average AfterTax Income 4
(Dollars)
8,034
20,532
30,043
38,205
46,408
61,916
84,082
126,543
248,098
584,208
2,264,052
94,459
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
-14.3
-10.1
2.0
11.1
15.8
18.5
21.5
25.2
28.5
29.7
33.1
24.4
0.3
1.6
2.7
3.4
3.3
8.9
9.4
28.9
21.4
7.3
13.2
100.0
0.4
2.3
3.4
4.0
3.7
9.6
9.8
28.5
20.2
6.8
11.7
100.0
-0.2
-0.6
0.2
1.6
2.2
6.8
8.3
29.9
25.0
8.9
17.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
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 imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums; $6,004 for single coverage, $11,974
for single-plus-one coverage, and $15,290 for family coverage.
(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.
12-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0247
Impose an Unindexed Cap on the Employer Sponsored Insurance Exclusion
Based on the 90th Percentile of Premium Levels
Distribution of Federal Tax Change by Cash Income Level, 2019 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
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
3.3
4.2
3.7
4.7
6.9
11.5
22.6
26.2
27.6
25.3
23.2
12.0
Percent Change
in After-Tax
Income 4
-0.1
-0.3
-0.2
-0.2
-0.2
-0.4
-0.7
-0.6
-0.4
-0.2
0.0
-0.4
Share of Total
Federal Tax
Change
0.1
2.2
3.1
2.4
2.0
8.0
17.1
43.9
17.7
2.3
1.3
100.0
Average Federal Tax Change
Dollars
7
51
54
60
99
251
599
826
1,001
885
892
320
Percent
3.3
8.9
5.4
3.0
3.5
3.4
3.3
2.4
1.1
0.4
0.1
1.5
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
-0.1
-0.1
-0.4
0.0
Under the
Proposal
0.1
0.4
0.9
1.2
0.9
3.6
7.9
28.1
24.0
8.8
24.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.1
0.3
0.2
0.1
0.2
0.3
0.6
0.5
0.3
0.1
0.0
0.3
Under the
Proposal
3.3
3.2
3.4
4.8
5.5
10.0
17.4
21.0
26.1
26.8
31.7
20.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2019 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
1,881
5,216
6,858
4,723
2,385
3,763
3,384
6,294
2,092
313
170
37,096
5.1
14.1
18.5
12.7
6.4
10.1
9.1
17.0
5.6
0.8
0.5
100.0
Average
Income
(Dollars)
6,274
19,399
30,858
42,480
54,463
76,385
107,102
168,679
348,365
830,018
3,548,849
106,595
Average
Federal Tax
Burden
(Dollars)
200
566
993
1,978
2,867
7,390
18,007
34,535
89,959
221,237
1,123,265
21,048
Average AfterTax Income 4
(Dollars)
6,074
18,832
29,866
40,502
51,597
68,995
89,095
134,144
258,407
608,781
2,425,584
85,547
Average
Federal Tax
Rate 5
3.2
2.9
3.2
4.7
5.3
9.7
16.8
20.5
25.8
26.7
31.7
19.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.3
2.6
5.4
5.1
3.3
7.3
9.2
26.9
18.4
6.6
15.2
100.0
0.4
3.1
6.5
6.0
3.9
8.2
9.5
26.6
17.0
6.0
13.0
100.0
0.1
0.4
0.9
1.2
0.9
3.6
7.8
27.8
24.1
8.9
24.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
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 imposes an unindexed cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums; $6,004 for single coverage, $11,974
for single-plus-one coverage, and $15,290 for family coverage.
(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.