13-Mar-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 T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017
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
68.4
72.6
74.4
84.7
91.4
95.2
99.0
99.6
97.5
62.5
44.2
85.9
With Tax
Increase
0.0
0.5
0.2
0.2
0.1
0.0
0.1
0.0
2.4
37.1
55.5
0.7
Percent Change
in After-Tax
Income 4
6.1
4.3
3.8
3.7
3.6
3.6
3.9
4.5
3.4
0.4
-0.2
3.3
1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1.4
4.1
5.9
5.8
5.0
12.2
12.4
36.1
17.0
0.7
-0.6
100.0
-353
-721
-1,019
-1,297
-1,555
-2,084
-3,120
-5,462
-8,224
-2,304
3,939
-2,371
Average Federal Tax Rate 5
Change (%
Points)
-5.8
-4.1
-3.5
-3.2
-3.0
-2.9
-3.1
-3.4
-2.5
-0.3
0.1
-2.5
Under the
Proposal
0.5
1.6
6.1
10.7
14.2
17.0
18.9
21.3
25.0
28.1
32.3
21.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 36.4
Proposal: 4.0
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion;
creates automatic 401(k)s and IRAs; and extends the American Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal
exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single); imposes a 20 percent rate on
capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions
reduce tax liability to 28 percent.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
68.4
72.6
74.4
84.7
91.4
95.2
99.0
99.6
97.5
62.5
44.2
85.9
0.0
0.5
0.2
0.2
0.1
0.0
0.1
0.0
2.4
37.1
55.5
0.7
Percent Change
in After-Tax
Income 4
6.1
4.3
3.8
3.7
3.6
3.6
3.9
4.5
3.4
0.4
-0.2
3.3
Share of Total
Federal Tax
Change
1.4
4.1
5.9
5.8
5.0
12.2
12.4
36.1
17.0
0.7
-0.6
100.0
Average Federal Tax Change
Dollars
Percent
-353
-721
-1,019
-1,297
-1,555
-2,084
-3,120
-5,462
-8,224
-2,304
3,939
-2,371
-92.6
-71.4
-36.4
-22.9
-17.2
-14.5
-13.9
-13.8
-9.0
-1.0
0.4
-10.6
Share of Federal Taxes
Change (%
Points)
-0.1
-0.4
-0.5
-0.4
-0.2
-0.4
-0.4
-1.0
0.4
0.8
2.2
0.0
Under the
Proposal
0.0
0.2
1.2
2.3
2.8
8.5
9.1
26.7
20.3
8.5
20.2
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.8
-4.1
-3.5
-3.2
-3.0
-2.9
-3.1
-3.4
-2.5
-0.3
0.1
-2.5
Under the
Proposal
0.5
1.6
6.1
10.7
14.2
17.0
18.9
21.3
25.0
28.1
32.3
21.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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)
15,235
22,814
22,859
17,762
12,750
23,157
15,801
26,251
8,189
1,281
626
167,465
Percent of
Total
9.1
13.6
13.7
10.6
7.6
13.8
9.4
15.7
4.9
0.8
0.4
100.0
Average
Income
(Dollars)
6,128
17,765
29,352
40,959
52,812
72,610
102,167
160,325
332,733
795,956
3,342,190
94,762
Average
Federal Tax
Burden
(Dollars)
381
1,010
2,802
5,665
9,036
14,399
22,426
39,530
91,543
225,839
1,075,357
22,399
Average AfterTax Income 4
(Dollars)
5,747
16,755
26,549
35,294
43,776
58,211
79,742
120,795
241,190
570,117
2,266,833
72,363
Average
Federal Tax
Rate 5
6.2
5.7
9.6
13.8
17.1
19.8
22.0
24.7
27.5
28.4
32.2
23.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
2.6
4.2
4.6
4.2
10.6
10.2
26.5
17.2
6.4
13.2
100.0
0.7
3.2
5.0
5.2
4.6
11.1
10.4
26.2
16.3
6.0
11.7
100.0
0.2
0.6
1.7
2.7
3.1
8.9
9.5
27.7
20.0
7.7
18.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 36.4
Proposal: 4.0
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
68.6
66.8
65.9
80.2
93.2
98.5
99.3
99.2
92.0
61.8
45.3
79.2
0.0
0.7
0.2
0.1
0.1
0.0
0.1
0.1
7.7
37.8
54.2
0.5
Percent Change
in After-Tax
Income 4
5.4
3.1
2.5
2.3
2.3
2.6
2.6
3.0
1.9
0.3
-0.2
2.4
Share of Total
Federal Tax
Change
4.3
9.1
11.2
9.4
7.6
18.4
12.7
20.9
6.3
0.4
-0.4
100.0
Average Federal Tax Change
Dollars
Percent
-299
-491
-647
-802
-965
-1,422
-1,975
-3,368
-4,423
-1,865
3,372
-1,026
-53.1
-29.0
-18.6
-12.4
-9.4
-8.6
-7.6
-7.9
-4.5
-0.8
0.3
-8.2
Share of Federal Taxes
Change (%
Points)
-0.3
-0.6
-0.6
-0.3
-0.1
-0.1
0.1
0.1
0.5
0.4
1.0
0.0
Under the
Proposal
0.3
2.0
4.3
5.9
6.5
17.5
13.7
21.6
11.9
4.7
11.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-4.9
-2.8
-2.2
-2.0
-1.8
-2.0
-2.0
-2.2
-1.3
-0.2
0.1
-1.9
Under the
Proposal
4.3
6.8
9.7
13.9
17.6
21.0
23.7
25.2
28.0
29.8
35.0
21.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
10,917
14,145
13,202
9,000
6,002
9,922
4,940
4,748
1,093
174
86
74,602
14.6
19.0
17.7
12.1
8.0
13.3
6.6
6.4
1.5
0.2
0.1
100.0
Average
Income
(Dollars)
6,111
17,666
29,277
40,778
52,703
71,984
100,800
155,733
335,909
782,418
3,269,296
55,098
Average
Federal Tax
Burden
(Dollars)
564
1,692
3,480
6,477
10,229
16,565
25,891
42,554
98,302
234,939
1,141,940
12,568
Average AfterTax Income 4
(Dollars)
5,546
15,974
25,797
34,301
42,474
55,419
74,909
113,179
237,607
547,479
2,127,356
42,531
Average
Federal Tax
Rate 5
9.2
9.6
11.9
15.9
19.4
23.0
25.7
27.3
29.3
30.0
34.9
22.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
6.1
9.4
8.9
7.7
17.4
12.1
18.0
8.9
3.3
6.8
100.0
1.9
7.1
10.7
9.7
8.0
17.3
11.7
16.9
8.2
3.0
5.8
100.0
0.7
2.6
4.9
6.2
6.6
17.5
13.6
21.6
11.5
4.4
10.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
49.6
71.9
79.2
81.4
82.6
89.4
98.7
99.8
98.6
63.1
44.4
90.3
0.0
0.0
0.4
0.5
0.3
0.1
0.1
0.0
1.2
36.4
55.4
1.3
Percent Change
in After-Tax
Income 4
6.7
5.5
5.3
4.8
4.5
4.0
4.5
4.9
3.7
0.4
-0.2
3.4
Share of Total
Federal Tax
Change
0.3
1.2
2.5
2.9
2.9
8.0
12.4
46.2
23.5
1.0
-0.7
100.0
Average Federal Tax Change
Dollars
Percent
-323
-961
-1,453
-1,794
-2,096
-2,467
-3,713
-6,049
-8,967
-2,469
3,400
-4,142
-98.4
-135.7
-70.5
-42.7
-31.2
-21.2
-18.5
-15.6
-9.9
-1.1
0.3
-10.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.3
-0.3
-0.2
-0.5
-0.6
-1.8
0.2
1.0
2.6
0.0
Under the
Proposal
0.0
0.0
0.1
0.5
0.7
3.5
6.3
29.2
24.9
10.5
24.2
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.2
-5.3
-4.9
-4.4
-4.0
-3.4
-3.6
-3.7
-2.7
-0.3
0.1
-2.6
Under the
Proposal
0.1
-1.4
2.1
5.8
8.7
12.5
15.9
20.2
24.6
27.8
31.8
22.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
1,991
3,134
4,456
4,170
3,564
8,441
8,693
19,961
6,842
1,063
516
63,115
3.2
5.0
7.1
6.6
5.7
13.4
13.8
31.6
10.8
1.7
0.8
100.0
Average
Income
(Dollars)
5,173
18,155
29,515
41,272
53,048
73,582
103,145
162,169
332,093
798,676
3,301,793
160,242
Average
Federal Tax
Burden
(Dollars)
328
708
2,060
4,203
6,725
11,648
20,077
38,854
90,500
224,855
1,046,685
39,668
Average AfterTax Income 4
(Dollars)
4,845
17,447
27,455
37,069
46,324
61,934
83,068
123,315
241,593
573,821
2,255,108
120,575
Average
Federal Tax
Rate 5
6.3
3.9
7.0
10.2
12.7
15.8
19.5
24.0
27.3
28.2
31.7
24.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.6
1.3
1.7
1.9
6.1
8.9
32.0
22.5
8.4
16.9
100.0
0.1
0.7
1.6
2.0
2.2
6.9
9.5
32.4
21.7
8.0
15.3
100.0
0.0
0.1
0.4
0.7
1.0
3.9
7.0
31.0
24.7
9.6
21.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
83.2
87.4
91.6
96.3
97.6
98.5
99.8
99.2
92.0
55.1
36.1
93.3
0.0
0.0
0.2
0.0
0.0
0.0
0.0
0.0
7.5
44.7
63.8
0.2
Percent Change
in After-Tax
Income 4
8.5
6.5
5.8
5.2
4.8
4.8
4.3
3.8
2.0
0.1
-0.5
4.7
Share of Total
Federal Tax
Change
2.6
11.7
14.7
14.8
10.9
21.8
11.6
10.4
1.7
0.0
-0.3
100.0
Average Federal Tax Change
Dollars
Percent
-647
-1,195
-1,614
-1,854
-2,079
-2,771
-3,337
-4,271
-4,792
-671
11,237
-1,980
128.1
166.4
-109.8
-35.7
-23.0
-19.3
-14.2
-11.1
-5.4
-0.3
1.1
-22.2
Share of Federal Taxes
Change (%
Points)
-0.9
-3.8
-3.4
-1.6
-0.1
0.9
1.9
3.0
1.5
0.8
1.7
0.0
Under the
Proposal
-1.3
-5.4
-0.4
7.6
10.5
26.0
19.9
23.7
8.5
3.4
7.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-9.1
-6.7
-5.5
-4.5
-4.0
-3.9
-3.3
-2.8
-1.4
-0.1
0.4
-3.9
Under the
Proposal
-16.2
-10.7
-0.5
8.1
13.2
16.1
19.9
22.7
25.2
26.3
33.0
13.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
2,203
5,282
4,916
4,293
2,839
4,236
1,871
1,315
192
32
13
27,245
8.1
19.4
18.0
15.8
10.4
15.6
6.9
4.8
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
7,096
17,817
29,377
40,991
52,683
72,016
101,150
150,485
334,180
784,301
3,240,237
51,423
Average
Federal Tax
Burden
(Dollars)
-505
-718
1,471
5,186
9,040
14,356
23,430
38,379
88,925
206,581
1,058,993
8,917
Average AfterTax Income 4
(Dollars)
7,602
18,535
27,906
35,805
43,643
57,660
77,721
112,106
245,255
577,720
2,181,244
42,507
Average
Federal Tax
Rate 5
-7.1
-4.0
5.0
12.7
17.2
19.9
23.2
25.5
26.6
26.3
32.7
17.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.1
6.7
10.3
12.6
10.7
21.8
13.5
14.1
4.6
1.8
3.0
100.0
1.5
8.5
11.8
13.3
10.7
21.1
12.6
12.7
4.1
1.6
2.5
100.0
-0.5
-1.6
3.0
9.2
10.6
25.0
18.0
20.8
7.0
2.7
5.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Tax Units with Children
Percent of Tax Units 3
Cash Income Level
(thousands of 2009
dollars) 2
With Tax Cut
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
82.1
96.2
97.9
99.2
99.7
99.6
99.9
100.0
98.2
56.1
34.2
97.3
With Tax
Increase
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
1.7
43.8
65.6
0.9
Percent Change
in After-Tax
Income 4
9.2
7.8
7.4
6.5
6.1
5.5
5.6
5.7
3.9
0.2
-0.5
4.4
Share of Total
Federal Tax
Change
0.9
4.1
6.0
6.0
5.3
12.4
12.8
36.7
16.6
0.3
-1.2
100.0
Average Federal Tax Change
Dollars
Percent
-693
-1,495
-2,099
-2,367
-2,693
-3,278
-4,494
-6,857
-9,151
-918
10,005
-3,895
94.4
105.5
-220.3
-49.6
-30.9
-23.6
-20.2
-16.9
-9.8
-0.4
0.9
-13.7
Share of Federal Taxes
Change (%
Points)
-0.2
-0.7
-0.9
-0.7
-0.5
-0.8
-0.7
-1.1
1.1
1.4
3.1
0.0
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.3
-1.3
-0.5
1.0
1.9
6.4
8.1
28.7
24.3
10.3
21.4
100.0
-10.2
-8.4
-7.2
-5.8
-5.1
-4.5
-4.4
-4.3
-2.8
-0.1
0.3
-3.3
-21.1
-16.4
-3.9
5.9
11.4
14.5
17.3
20.9
25.4
29.5
33.7
21.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
2,595
5,461
5,669
5,070
3,920
7,506
5,690
10,667
3,622
546
242
51,137
5.1
10.7
11.1
9.9
7.7
14.7
11.1
20.9
7.1
1.1
0.5
100.0
Average
Income
(Dollars)
6,785
17,790
29,309
41,044
52,884
73,020
102,722
161,284
331,083
795,506
3,286,010
116,581
Average
Federal Tax
Burden
(Dollars)
-734
-1,417
953
4,773
8,714
13,887
22,290
40,581
93,134
235,941
1,096,698
28,375
Average AfterTax Income 4
(Dollars)
7,519
19,207
28,357
36,271
44,170
59,133
80,431
120,702
237,949
559,566
2,189,312
88,206
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
-10.8
-8.0
3.3
11.6
16.5
19.0
21.7
25.2
28.1
29.7
33.4
24.3
0.3
1.6
2.8
3.5
3.5
9.2
9.8
28.9
20.1
7.3
13.3
100.0
0.4
2.3
3.6
4.1
3.8
9.8
10.2
28.5
19.1
6.8
11.7
100.0
-0.1
-0.5
0.4
1.7
2.4
7.2
8.7
29.8
23.3
8.9
18.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
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 extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0153
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 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
19.1
27.8
32.2
47.1
55.9
75.4
96.7
99.1
96.9
74.0
54.6
59.6
0.0
0.1
0.1
0.1
0.1
0.0
0.1
0.1
2.7
24.6
45.1
0.6
Percent Change
in After-Tax
Income 4
1.1
0.8
0.8
1.1
1.0
1.5
2.7
3.6
3.2
1.0
0.3
2.2
Share of Total
Federal Tax
Change
0.2
1.2
2.5
2.9
1.7
6.2
12.8
43.6
24.3
2.8
1.8
100.0
Average Federal Tax Change
Dollars
Percent
-65
-139
-233
-429
-504
-1,014
-2,283
-4,585
-7,949
-5,738
-6,860
-1,730
-26.9
-23.4
-21.8
-19.7
-17.2
-13.0
-13.4
-13.9
-9.2
-2.7
-0.6
-8.7
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.2
-0.1
-0.2
-0.4
-1.6
-0.1
0.6
2.2
0.0
Under the
Proposal
0.1
0.4
0.9
1.1
0.8
3.9
7.8
25.6
22.7
9.8
27.0
100.0
Average Federal Tax Rate5
Change (%
Points)
-1.1
-0.8
-0.8
-1.1
-1.0
-1.4
-2.2
-2.9
-2.4
-0.7
-0.2
-1.7
Under the
Proposal
2.9
2.5
2.8
4.3
4.6
9.2
14.4
17.6
23.3
26.5
31.9
18.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 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
1,852
5,347
6,566
4,059
2,012
3,712
3,389
5,760
1,853
296
157
35,022
5.3
15.3
18.8
11.6
5.8
10.6
9.7
16.5
5.3
0.9
0.5
100.0
Average
Income
(Dollars)
6,147
18,393
29,413
40,752
52,579
73,495
102,388
160,774
336,349
797,727
3,436,875
100,433
Average
Federal Tax
Burden
(Dollars)
242
594
1,065
2,185
2,934
7,796
16,984
32,953
86,294
216,852
1,103,303
19,979
Average AfterTax Income 4
(Dollars)
5,905
17,799
28,349
38,566
49,645
65,698
85,404
127,822
250,055
580,876
2,333,573
80,454
Average
Federal Tax
Rate 5
3.9
3.2
3.6
5.4
5.6
10.6
16.6
20.5
25.7
27.2
32.1
19.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.3
2.8
5.5
4.7
3.0
7.8
9.9
26.3
17.7
6.7
15.4
100.0
0.4
3.4
6.6
5.6
3.6
8.7
10.3
26.1
16.5
6.1
13.0
100.0
0.1
0.5
1.0
1.3
0.8
4.1
8.2
27.1
22.9
9.2
24.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
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 extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent.
(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.