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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Summary Table
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
68.1
56.9
54.1
51.1
51.1
46.6
42.1
28.1
8.5
6.6
3.4
48.0
With Tax
Increase
29.6
40.5
45.0
48.7
48.8
53.3
57.9
71.9
91.5
93.4
96.6
51.2
Percent
Change in
After-Tax
4
Income
50.3
14.7
7.3
4.4
2.8
1.1
-0.1
-2.6
-5.2
-5.8
-5.8
0.0
Share of Total
Federal Tax
Change
-2,974.1
-3,464.3
-2,432.5
-1,396.9
-913.6
-930.6
97.3
3,679.0
3,745.7
1,786.8
3,110.9
100.0
Average
Federal Tax
Change ($)
-2,829
-2,212
-1,697
-1,352
-1,081
-574
87
2,807
11,609
30,153
114,783
10
Average Federal Tax Rate
Change (%
Points)
-51.2
-14.7
-6.9
-3.9
-2.4
-0.9
0.1
2.1
4.0
4.4
4.3
0.0
5
Under the
Proposal
-53.0
-14.4
-1.1
7.0
11.2
14.8
17.5
21.9
26.6
28.4
31.4
18.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-2).
Number of AMT Taxpayers (millions). Baseline: 3.8
Proposal: 4.1
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a
voucher to purchase private insurance. Individual voucher value depends on age and gender; the total voucher for each tax unit is the sum of each individual's
voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT at tax exclusive rate of 6.7% to
finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 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
68.1
56.9
54.1
51.1
51.1
46.6
42.1
28.1
8.5
6.6
3.4
48.0
29.6
40.5
45.0
48.7
48.8
53.3
57.9
71.9
91.5
93.4
96.6
51.2
Percent Change
in After-Tax
Income 4
50.3
14.7
7.3
4.4
2.8
1.1
-0.1
-2.6
-5.2
-5.8
-5.8
0.0
Share of Total
Federal Tax
Change
-2,974.1
-3,464.3
-2,432.5
-1,396.9
-913.6
-930.6
97.3
3,679.0
3,745.7
1,786.8
3,110.9
100.0
Average Federal Tax Change
Dollars
-2,829
-2,212
-1,697
-1,352
-1,081
-574
87
2,807
11,609
30,153
114,783
10
Percent
2,859.6
-5,714.7
-118.5
-35.8
-17.8
-5.9
0.6
10.6
17.8
18.5
15.7
0.1
Share of Federal Taxes
Change (%
Points)
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-2.4
-2.6
-0.3
1.9
3.3
11.4
13.1
29.8
19.2
8.9
17.8
100.0
-51.2
-14.7
-6.9
-3.9
-2.4
-0.9
0.1
2.1
4.0
4.4
4.3
0.0
-53.0
-14.4
-1.1
7.0
11.2
14.8
17.5
21.9
26.6
28.4
31.4
18.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.3
5.0
5.0
5.3
14.0
13.5
24.6
13.0
5.6
10.2
100.0
1.0
4.0
5.7
5.5
5.6
14.4
13.6
24.1
12.3
5.2
9.1
100.0
-0.1
0.1
1.6
3.0
4.0
12.2
13.0
27.0
16.3
7.5
15.4
100.0
-2.3
-2.7
-1.9
-1.1
-0.7
-0.7
0.1
2.8
2.9
1.4
2.4
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 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)
15,207
22,657
20,737
14,945
12,224
23,449
16,133
18,960
4,667
857
392
150,979
Percent of
Total
10.1
15.0
13.7
9.9
8.1
15.5
10.7
12.6
3.1
0.6
0.3
100.0
Average
Income
(Dollars)
5,525
15,088
24,780
34,833
44,804
61,698
86,623
134,298
289,582
680,610
2,700,196
68,631
Average
Federal Tax
Burden
(Dollars)
-99
39
1,432
3,774
6,077
9,689
15,031
26,539
65,287
163,195
733,247
12,367
Average AfterTax Income 4
(Dollars)
5,624
15,049
23,348
31,059
38,727
52,009
71,592
107,759
224,295
517,415
1,966,949
56,264
Average
Federal Tax
Rate 5
-1.8
0.3
5.8
10.8
13.6
15.7
17.4
19.8
22.6
24.0
27.2
18.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
Number of AMT Taxpayers (millions). Baseline: 3.8
Proposal: 4.1
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value
depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT
at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 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
68.1
48.4
45.0
40.1
37.9
28.3
14.5
7.3
7.4
13.4
4.1
42.3
28.7
47.6
53.4
59.6
62.0
71.7
85.5
92.7
92.6
86.6
95.9
56.1
Percent Change
in After-Tax
Income 4
40.2
8.1
3.2
1.0
-0.8
-2.7
-3.6
-4.4
-4.6
-4.4
-5.3
-0.1
Share of Total
Federal Tax
Change
-1,690.7
-1,180.2
-588.9
-153.7
121.3
896.1
695.7
997.7
503.6
197.0
386.1
100.0
Average Federal Tax Change
Dollars
-2,107
-1,143
-710
-283
281
1,320
2,407
4,502
10,438
22,539
98,759
20
Percent
-1,285.6
-127.7
-25.8
-5.2
3.5
11.1
12.8
15.3
15.5
13.3
12.1
0.3
Share of Federal Taxes
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-4.1
-0.7
4.5
7.4
9.4
23.7
16.2
19.9
9.9
4.4
9.4
100.0
-39.0
-7.6
-2.9
-0.8
0.6
2.2
2.8
3.4
3.6
3.3
3.7
0.1
-35.9
-1.7
8.3
14.8
18.5
21.7
24.6
25.9
26.6
28.1
34.3
18.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.1
7.6
10.0
9.3
9.5
20.3
12.2
14.3
6.9
2.9
5.1
100.0
2.5
8.8
11.0
9.6
9.6
20.0
11.7
13.6
6.5
2.7
4.4
100.0
0.4
2.5
6.1
7.9
9.1
21.4
14.4
17.3
8.6
3.9
8.4
100.0
Change (%
Points)
-4.5
-3.1
-1.6
-0.4
0.3
2.3
1.8
2.6
1.3
0.5
1.0
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 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
10,640
13,688
10,999
7,212
5,727
9,001
3,832
2,938
640
116
52
65,239
16.3
21.0
16.9
11.1
8.8
13.8
5.9
4.5
1.0
0.2
0.1
100.0
Average
Income
(Dollars)
5,407
14,979
24,656
34,817
44,776
60,853
86,147
131,358
292,079
683,645
2,664,301
41,404
Average
Federal Tax
Burden
(Dollars)
164
895
2,757
5,447
7,989
11,910
18,816
29,448
67,195
169,705
814,189
7,673
Average AfterTax Income 4
(Dollars)
5,243
14,084
21,899
29,370
36,787
48,943
67,331
101,910
224,884
513,940
1,850,113
33,731
Average
Federal Tax
Rate 5
3.0
6.0
11.2
15.7
17.8
19.6
21.8
22.4
23.0
24.8
30.6
18.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value
depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT
at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 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
72.8
65.6
60.7
60.4
61.8
60.3
53.0
32.4
8.6
5.5
3.2
48.6
26.9
33.9
39.2
39.4
38.2
39.7
47.0
67.5
91.5
94.5
96.8
51.4
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
121.2
28.4
14.1
9.0
6.6
4.0
1.2
-2.3
-5.3
-6.1
-5.9
-0.8
-31.5
-43.4
-39.8
-28.9
-26.1
-58.0
-24.1
92.9
114.4
55.6
92.8
100.0
Average Federal Tax Change
Dollars
-6,341
-4,587
-3,507
-3,005
-2,733
-2,219
-898
2,460
11,873
31,384
115,032
673
Percent
3,680.5
824.7
-8,015.5
-196.0
-76.9
-28.9
-6.6
9.5
18.2
19.4
16.3
3.3
Share of Federal Taxes
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-1.0
-1.5
-1.2
-0.5
0.3
4.5
10.7
33.7
23.4
10.8
20.9
100.0
-125.3
-29.5
-14.1
-8.6
-6.1
-3.5
-1.0
1.8
4.1
4.6
4.3
0.6
-128.7
-33.0
-13.9
-4.2
1.8
8.7
14.5
21.0
26.6
28.4
30.9
19.4
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.2
0.9
1.7
2.1
2.6
10.0
14.2
31.2
17.0
7.4
13.1
100.0
0.2
1.2
2.1
2.4
3.0
10.8
14.8
31.0
16.2
6.9
11.8
100.0
0.0
-0.2
0.0
0.5
1.1
6.5
11.8
31.8
20.4
9.3
18.5
100.0
Change (%
Points)
-1.0
-1.4
-1.3
-0.9
-0.9
-2.0
-1.1
1.9
3.0
1.5
2.3
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 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
1,998
3,803
4,567
3,867
3,840
10,515
10,783
15,177
3,875
712
324
59,744
3.3
6.4
7.6
6.5
6.4
17.6
18.1
25.4
6.5
1.2
0.5
100.0
Average
Income
(Dollars)
5,059
15,576
24,929
35,061
44,910
62,818
87,017
135,259
289,456
680,193
2,650,897
110,299
Average
Federal Tax
Burden
(Dollars)
-172
-556
44
1,533
3,554
7,685
13,530
25,892
65,129
161,911
704,575
20,672
Average AfterTax Income 4
(Dollars)
5,232
16,132
24,886
33,528
41,356
55,133
73,487
109,367
224,326
518,282
1,946,322
89,627
Average
Federal Tax
Rate 5
-3.4
-3.6
0.2
4.4
7.9
12.2
15.6
19.1
22.5
23.8
26.6
18.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value
depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT
at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 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
62.9
72.3
66.8
61.2
64.0
50.3
30.2
20.1
12.3
5.5
6.7
60.3
36.4
27.2
33.0
38.8
36.0
49.6
69.6
79.9
87.7
94.5
93.3
39.4
Percent Change
in After-Tax
Income 4
37.0
18.5
8.1
4.6
3.6
0.6
-2.3
-3.2
-4.5
-5.6
-6.6
4.3
Share of Total
Federal Tax
Change
19.7
44.2
28.4
14.6
9.5
3.1
-5.9
-6.6
-3.1
-1.6
-2.9
100.0
Average Federal Tax Change
Dollars
-2,839
-3,153
-2,051
-1,480
-1,400
-312
1,589
3,205
9,967
28,077
124,402
-1,481
Share of Federal Taxes
Average Federal Tax Rate 5
Percent
Change (%
Points)
Under the
Proposal
Change (%
Points)
Under the
Proposal
230.2
157.1
481.1
-59.1
-26.2
-3.2
10.1
11.7
16.2
17.3
17.0
-36.7
-13.2
-31.6
-17.7
-3.2
2.2
18.3
15.9
15.8
5.8
2.8
5.3
0.0
-16.4
-42.0
-19.9
5.9
15.4
52.8
37.4
36.5
12.8
6.2
11.6
100.0
-44.1
-21.0
-8.2
-4.3
-3.1
-0.5
1.9
2.5
3.5
4.2
4.7
-3.9
-63.3
-34.4
-9.9
3.0
8.8
15.4
20.4
24.2
25.3
28.5
32.6
6.7
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
-19.2
-13.4
-1.7
7.2
11.9
15.9
18.5
21.7
21.7
24.3
27.8
10.5
1.7
8.1
13.3
13.2
11.6
22.8
12.2
10.0
3.4
1.4
2.4
100.0
2.3
10.3
15.1
13.6
11.5
21.5
11.1
8.8
2.9
1.2
1.9
100.0
-3.1
-10.3
-2.2
9.1
13.2
34.5
21.5
20.7
7.0
3.3
6.3
100.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 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
2,405
4,868
4,812
3,429
2,343
3,396
1,290
713
107
19
8
23,435
10.3
20.8
20.5
14.6
10.0
14.5
5.5
3.0
0.5
0.1
0.0
100.0
Average
Income
(Dollars)
6,435
15,009
24,923
34,560
44,753
60,572
85,205
126,502
283,499
668,859
2,631,074
38,440
Average
Federal Tax
Burden
(Dollars)
-1,233
-2,007
-426
2,502
5,335
9,619
15,775
27,446
61,629
162,736
732,563
4,035
Average AfterTax Income 4
(Dollars)
7,669
17,017
25,350
32,059
39,418
50,954
69,430
99,056
221,870
506,123
1,898,511
34,405
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-2).
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value
depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT
at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 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
65.1
74.1
67.8
63.9
67.6
63.9
51.6
31.0
8.6
4.5
3.2
55.5
31.6
25.5
32.2
36.1
32.4
36.1
48.3
69.0
91.4
95.5
96.8
44.2
Percent Change
in After-Tax
Income 4
50.9
20.5
9.1
6.3
5.4
3.6
1.0
-2.4
-5.5
-6.5
-6.3
0.2
Share of Total
Federal Tax
Change
183.3
328.2
220.7
153.4
133.7
231.6
67.3
-354.6
-392.3
-187.6
-296.8
100.0
Average Federal Tax Change
Dollars
-3,862
-3,669
-2,404
-2,085
-2,197
-1,904
-698
2,590
11,991
32,756
122,951
-131
Percent
268.5
133.4
168.3
-142.2
-52.6
-22.5
-5.0
9.9
17.7
19.1
16.1
-0.9
Share of Federal Taxes
Change (%
Points)
-1.7
-3.0
-2.0
-1.4
-1.2
-2.1
-0.5
3.6
3.8
1.8
2.9
0.0
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-2.3
-5.3
-3.2
-0.4
1.1
7.3
11.9
36.4
24.0
10.8
19.8
100.0
-62.8
-24.2
-9.6
-6.0
-4.9
-3.1
-0.8
1.9
4.2
4.8
4.5
-0.2
-86.2
-42.3
-15.3
-1.8
4.4
10.6
15.4
21.3
27.7
30.1
32.8
17.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 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
3,041
5,731
5,881
4,714
3,898
7,792
6,174
8,773
2,096
367
155
48,765
6.2
11.8
12.1
9.7
8.0
16.0
12.7
18.0
4.3
0.8
0.3
100.0
Average
Income
(Dollars)
6,151
15,177
25,010
34,815
44,858
61,928
86,600
135,158
287,617
678,793
2,707,503
83,132
Average
Federal Tax
Burden
(Dollars)
-1,438
-2,750
-1,429
1,467
4,175
8,453
14,062
26,237
67,750
171,567
766,165
14,393
Average AfterTax Income 4
(Dollars)
7,589
17,928
26,439
33,348
40,683
53,475
72,538
108,921
219,867
507,226
1,941,338
68,738
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
-23.4
-18.1
-5.7
4.2
9.3
13.7
16.2
19.4
23.6
25.3
28.3
17.3
0.5
2.2
3.6
4.1
4.3
11.9
13.2
29.3
14.9
6.1
10.3
100.0
0.7
3.1
4.6
4.7
4.7
12.4
13.4
28.5
13.8
5.6
9.0
100.0
-0.6
-2.3
-1.2
1.0
2.3
9.4
12.4
32.8
20.2
9.0
16.9
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 replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value
depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT
at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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 T09-0258
Replace ESI Exclusion and Self-Employment Health Insurance Deduction With Voucher to Purchase Private Insurance
Impose Comprehensive VAT at Tax Exclusive Rate of 6.7%
Distribution of Federal Tax Change by Cash Income Level, 2009 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
21.6
11.0
10.5
12.5
15.5
19.8
25.2
17.8
8.4
4.7
2.1
15.7
71.7
82.2
86.4
86.7
84.4
80.2
74.7
82.2
91.6
95.3
97.9
81.9
Percent Change
in After-Tax
Income 4
23.0
2.7
1.0
0.3
-0.3
-0.7
-0.7
-2.6
-4.4
-4.8
-5.3
-1.9
Share of Total
Federal Tax
Change
-7.8
-7.1
-3.3
-0.6
0.6
5.3
5.2
29.4
32.8
15.3
30.1
100.0
Average Federal Tax Change
Dollars
-1,340
-416
-241
-96
120
382
544
2,922
10,423
24,964
100,485
1,167
Percent
-9,063.1
-341.4
-48.3
-9.3
6.2
7.3
5.7
14.0
18.3
16.5
14.5
11.4
Share of Federal Taxes
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.8
-0.5
0.4
0.6
1.1
7.9
9.9
24.5
21.6
11.0
24.2
100.0
-22.9
-2.7
-1.0
-0.3
0.3
0.6
0.6
2.2
3.6
3.7
3.9
1.6
-22.6
-1.9
1.1
2.7
4.6
9.0
11.7
17.7
23.1
26.1
30.6
15.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.2
5.3
3.6
3.7
13.9
13.3
21.7
14.8
6.7
12.5
100.0
0.6
4.8
6.1
4.1
4.1
14.8
13.8
21.3
13.8
6.0
10.6
100.0
0.0
0.2
0.8
0.8
1.1
8.2
10.4
23.9
20.4
10.5
23.6
100.0
Change (%
Points)
-0.8
-0.8
-0.4
-0.1
-0.1
-0.3
-0.5
0.6
1.3
0.5
0.7
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 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
1,934
5,637
4,482
2,158
1,699
4,598
3,174
3,335
1,043
203
99
28,390
6.8
19.9
15.8
7.6
6.0
16.2
11.2
11.8
3.7
0.7
0.4
100.0
Average
Income
(Dollars)
5,854
15,311
24,469
34,695
44,849
62,161
86,323
134,225
291,964
675,705
2,590,709
72,658
Average
Federal Tax
Burden
(Dollars)
15
122
498
1,042
1,937
5,211
9,560
20,893
56,953
151,365
692,342
10,270
Average AfterTax Income 4
(Dollars)
5,839
15,189
23,971
33,653
42,912
56,949
76,763
113,332
235,010
524,340
1,898,367
62,388
Average
Federal Tax
Rate 5
0.3
0.8
2.0
3.0
4.3
8.4
11.1
15.6
19.5
22.4
26.7
14.1
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 replaces the employer sponsored insurance deduction and self-employment health insurance deduction with a voucher to purchase private insurance. Individual voucher value
depends on age and gender; the total voucher for each tax unit is the sum of each individual's voucher. Only individuals not on public insurance receive a voucher. The proposal imposes a revenue neutral comprehensive VAT
at tax exclusive rate of 6.7% to finance the voucher. The VAT is distributed to labor earnings plus all capital.
(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.