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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 With Tax Increase 0.6 1.3 2.5 3.8 5.0 7.1 8.3 10.4 11.7 9.9 9.6 5.5 Percent Change in After-Tax 4 Income 0.0 0.0 0.0 0.0 0.0 -0.1 -0.1 -0.1 -0.1 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 1.2 3.3 4.0 3.9 11.8 14.1 39.6 18.3 2.4 1.2 100.0 Average Federal Tax Change ($) 0 3 9 13 18 29 51 84 118 107 104 34 Average Federal Tax Rate5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 Under the Proposal 3.1 4.1 8.4 12.7 16.2 19.3 22.0 24.7 27.8 28.3 31.9 23.5 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-2). Number of AMT Taxpayers (millions). Baseline: 43.0 Proposal: 43.0 (1) Calendar year. Baseline is current law. Proposal imposes a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 1.3 2.5 3.8 5.0 7.1 8.3 10.4 11.7 9.9 9.6 5.5 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 -0.1 -0.1 -0.1 -0.1 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 1.2 3.3 4.0 3.9 11.8 14.1 39.6 18.3 2.4 1.2 100.0 Average Federal Tax Change Dollars 0 3 9 13 18 29 51 84 118 107 104 34 Percent 0.2 0.4 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.0 0.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.1 0.4 1.5 2.5 2.9 8.4 9.2 28.0 21.5 7.7 17.8 100.0 Average Federal Tax Rate 5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 Under the Proposal 3.1 4.1 8.4 12.7 16.2 19.3 22.0 24.7 27.8 28.3 31.9 23.5 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: 43.0 (1) Calendar year. Baseline is current law. Proposal imposes a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 1.2 2.4 4.2 5.8 8.6 9.4 8.7 7.8 6.5 5.2 4.3 Percent Change in After-Tax 4 Income 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.5 4.0 8.4 9.5 9.7 27.0 19.2 17.6 3.5 0.4 0.2 100.0 Average Federal Tax Change Dollars 0 3 5 9 14 23 32 30 25 17 16 11 Percent 0.1 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.4 2.1 4.4 5.7 6.1 17.0 14.4 22.8 12.3 4.4 10.4 100.0 5 Average Federal Tax Rate Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 6.0 8.3 10.7 14.3 18.2 22.6 25.9 27.4 29.5 30.0 35.0 22.5 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 a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.7 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 2.4 2.4 2.7 3.9 5.7 8.2 11.1 12.5 10.8 10.5 7.9 Percent Change in After-Tax 4 Income 0.0 0.0 -0.1 0.0 -0.1 -0.1 -0.1 -0.1 -0.1 0.0 0.0 -0.1 Share of Total Federal Tax Change 0.0 0.5 1.5 1.4 1.9 6.4 12.9 47.8 23.0 3.1 1.5 100.0 Average Federal Tax Change Dollars 1 7 15 15 23 34 68 102 134 124 121 69 Percent 0.4 2.0 0.9 0.4 0.4 0.3 0.3 0.3 0.1 0.1 0.0 0.2 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.0 0.0 0.3 0.6 0.8 3.4 6.3 30.8 26.7 9.5 21.4 100.0 5 Average Federal Tax Rate Change (% Points) 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 Under the Proposal 3.5 1.9 5.9 9.2 11.6 14.7 19.1 23.9 27.6 28.0 31.4 24.7 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 a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.4 0.9 2.6 3.6 4.4 6.2 5.4 6.1 2.6 2.6 3.9 3.4 Percent Change in After-Tax 4 Income 0.0 0.0 0.0 0.0 0.0 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 3.0 12.0 16.4 12.0 30.8 13.6 10.5 1.3 0.2 0.1 100.0 Average Federal Tax Change Dollars 0 3 11 17 18 31 31 31 28 29 26 16 Percent 0.0 -0.2 1.0 0.3 0.2 0.2 0.1 0.1 0.0 0.0 0.0 0.2 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -0.6 -2.1 2.1 8.6 10.1 25.0 18.3 22.9 7.3 2.6 5.7 100.0 5 Average Federal Tax Rate Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -10.1 -5.7 3.8 12.0 16.6 19.7 23.1 25.8 26.8 25.8 32.4 17.2 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 a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.7 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.2 1.2 2.8 3.4 4.4 5.7 7.1 10.6 12.0 11.4 11.3 6.1 Percent Change in After-Tax Income 4 0.0 0.0 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 0.0 0.0 -0.1 Share of Total Federal Tax Change 0.0 0.7 3.0 3.6 3.3 9.2 13.1 42.3 20.6 2.9 1.2 100.0 Average Federal Tax Change Dollars 0 4 15 20 24 35 66 109 147 146 139 55 Percent 0.0 -0.2 2.5 0.4 0.3 0.3 0.3 0.3 0.2 0.1 0.0 0.2 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -0.2 -0.6 0.2 1.6 2.2 6.8 8.3 29.9 25.0 8.9 17.9 100.0 Average Federal Tax Rate 5 Change (% Points) 0.0 0.0 0.1 0.1 0.0 0.1 0.1 0.1 0.0 0.0 0.0 0.0 Under the Proposal -14.3 -10.0 2.1 11.2 15.9 18.6 21.6 25.3 28.5 29.7 33.1 24.4 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 a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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 T09-0255 Impose a Cap on the Employer Sponsored Insurance Exclusion Cap is Indexed by Projected Growth of Medical Expenses and 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 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.3 0.4 0.6 0.8 1.6 3.5 5.1 5.9 5.2 4.4 2.0 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change -0.1 1.2 1.9 1.7 1.1 5.8 13.6 49.2 21.5 2.6 1.6 100.0 Average Federal Tax Change Dollars 0 1 2 2 2 8 22 43 56 46 52 15 Percent -0.1 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.1 0.4 0.9 1.2 0.9 3.6 7.8 27.9 24.1 8.9 24.4 100.0 Average Federal Tax Rate 5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 3.2 2.9 3.2 4.7 5.3 9.7 16.8 20.5 25.8 26.7 31.7 19.8 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 a cap on the employer sponsored insurance exclusion. The cap levels are based on the 90th percentile of premiums and are indexed by the projected growth of medical expenses after 2009. Their 2009 values are $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.