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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017 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
68.3
69.0
67.8
76.4
84.4
86.4
78.5
66.8
14.3
6.1
3.2
70.2
With Tax
Increase
0.0
0.3
0.2
0.2
0.2
0.1
0.2
0.8
50.1
88.1
92.9
3.7
Percent
Change in
After-Tax
Income 4
6.1
3.5
2.1
1.6
1.4
1.1
0.8
0.5
-0.9
-3.4
-5.9
-0.3
Share of Total
Federal Tax
Change
-12.3
-31.1
-29.5
-23.9
-18.6
-36.3
-22.6
-37.1
43.6
60.4
208.0
100.0
Average
Federal Tax
Change ($)
-348
-587
-555
-579
-628
-675
-617
-609
2,294
20,294
143,066
257
Average Federal Tax Rate5
Change (%
Points)
-5.7
-3.3
-1.9
-1.4
-1.2
-0.9
-0.6
-0.4
0.7
2.6
4.3
0.3
Under the
Proposal
0.4
1.6
6.1
10.6
14.1
16.9
18.6
21.0
24.7
27.9
32.2
21.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 6.7
Proposal: 4.0
(1) Calendar year. Baseline is Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains
the estate tax at its 2009 parameters; extends the 2009 AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for
inflation). 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
(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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
68.3
69.0
67.8
76.4
84.4
86.4
78.5
66.8
14.3
6.1
3.2
70.2
0.0
0.3
0.2
0.2
0.2
0.1
0.2
0.8
50.1
88.1
92.9
3.7
Percent
Change in
After-Tax
Income 4
6.1
3.5
2.1
1.6
1.4
1.1
0.8
0.5
-0.9
-3.4
-5.9
-0.3
Share of Total
Federal Tax
Change
-12.3
-31.1
-29.5
-23.9
-18.6
-36.3
-22.6
-37.1
43.6
60.4
208.0
100.0
Average Federal Tax Change
Dollars
-348
-587
-555
-579
-628
-675
-617
-609
2,294
20,294
143,066
257
Percent
-92.8
-67.8
-23.8
-11.8
-7.8
-5.2
-3.2
-1.8
2.9
10.1
15.3
1.3
Share of Federal Taxes
Change (%
Points)
-0.2
-0.4
-0.4
-0.3
-0.3
-0.6
-0.4
-0.8
0.3
0.7
2.5
0.0
Under the
Proposal
0.0
0.2
1.2
2.3
2.9
8.5
9.0
26.6
20.3
8.5
20.3
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.7
-3.3
-1.9
-1.4
-1.2
-0.9
-0.6
-0.4
0.7
2.6
4.3
0.3
Under the
Proposal
0.4
1.6
6.1
10.6
14.1
16.9
18.6
21.0
24.7
27.9
32.2
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)
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)
376
866
2,331
4,926
8,096
12,907
19,591
34,336
80,011
201,370
934,004
19,596
Average AfterTax Income 4
(Dollars)
5,752
16,899
27,020
36,032
44,715
59,703
82,576
125,989
252,721
594,586
2,408,185
75,167
Average
Federal Tax
Rate 5
6.1
4.9
7.9
12.0
15.3
17.8
19.2
21.4
24.1
25.3
28.0
20.7
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
3.1
4.9
5.1
4.5
11.0
10.4
26.3
16.4
6.1
12.0
100.0
0.2
0.6
1.6
2.7
3.2
9.1
9.4
27.5
20.0
7.9
17.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 6.7
Proposal: 4.0
(1) Calendar year. Baseline is Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
68.5
61.4
57.7
71.0
83.7
84.8
61.7
11.4
5.7
4.5
0.7
63.5
0.0
0.5
0.1
0.0
0.0
0.0
0.0
1.9
70.1
83.2
90.3
1.6
Percent
Change in
After-Tax
4
Income
5.4
2.3
1.3
1.2
1.1
0.8
0.3
0.1
-1.5
-3.4
-5.9
0.2
Share of Total
Federal Tax
Change
50.9
80.2
70.0
56.3
42.5
72.2
19.9
5.8
-64.9
-54.2
-179.5
100.0
Average Federal Tax Change
Dollars
-299
-363
-340
-401
-453
-466
-258
-78
3,809
19,912
133,855
-86
Percent
-53.1
-23.4
-10.8
-6.6
-4.7
-3.0
-1.1
-0.2
4.6
9.8
13.3
-0.8
1
Share of Federal Taxes
Change (%
Points)
-0.4
-0.6
-0.5
-0.4
-0.3
-0.4
-0.1
0.1
0.6
0.5
1.5
0.0
Under the
Proposal
0.4
2.0
4.5
6.1
6.6
17.8
13.5
21.3
11.5
4.7
11.7
100.0
Average Federal Tax Rate5
Change (%
Points)
-4.9
-2.1
-1.2
-1.0
-0.9
-0.7
-0.3
-0.1
1.1
2.5
4.1
-0.2
Under the
Proposal
4.3
6.7
9.6
13.8
17.5
20.8
22.7
24.0
26.1
28.6
34.8
20.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
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
10,917
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)
563
1,551
3,162
6,045
9,696
15,426
23,150
37,510
83,782
203,564
1,005,140
11,291
Average AfterTax Income 4
(Dollars)
5,547
16,115
26,115
34,734
43,008
56,558
77,650
118,223
252,128
578,855
2,264,156
43,807
Average
Federal Tax
Rate 5
9.2
8.8
10.8
14.8
18.4
21.4
23.0
24.1
24.9
26.0
30.7
20.5
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
7.0
10.6
9.6
7.9
17.2
11.7
17.2
8.4
3.1
6.0
100.0
0.7
2.6
5.0
6.5
6.9
18.2
13.6
21.1
10.9
4.2
10.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
49.6
71.1
71.5
69.1
75.2
83.2
88.9
83.8
15.8
6.3
3.8
71.0
0.0
0.0
0.1
0.9
0.3
0.1
0.3
0.2
46.5
88.9
93.1
7.5
Percent
Change in
After-Tax
4
Income
6.2
4.9
3.3
2.4
2.1
1.5
1.0
0.6
-0.8
-3.4
-5.9
-0.8
Share of Total
Federal Tax
Change
-1.0
-4.3
-6.5
-5.9
-5.6
-12.6
-11.9
-24.7
21.9
34.4
116.4
100.0
Average Federal Tax Change
Dollars
-303
-861
-916
-894
-986
-938
-862
-778
2,015
20,342
141,932
997
Percent
-99.6
-144.2
-60.3
-27.2
-17.6
-9.3
-5.0
-2.3
2.5
10.1
15.7
2.9
1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.2
-0.2
-0.5
-0.5
-1.6
-0.1
0.7
2.7
0.0
Under the
Proposal
0.0
0.0
0.1
0.5
0.7
3.5
6.4
29.2
24.9
10.5
24.2
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.9
-4.7
-3.1
-2.2
-1.9
-1.3
-0.8
-0.5
0.6
2.6
4.3
0.6
Under the
Proposal
0.0
-1.5
2.0
5.8
8.7
12.5
15.9
20.2
24.5
27.8
31.8
22.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
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
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)
304
597
1,518
3,285
5,608
10,112
17,213
33,556
79,329
201,401
906,572
34,470
Average AfterTax Income 4
(Dollars)
4,869
17,558
27,997
37,987
47,441
63,470
85,931
128,613
252,764
597,275
2,395,221
125,773
Average
Federal Tax
Rate 5
5.9
3.3
5.1
8.0
10.6
13.7
16.7
20.7
23.9
25.2
27.5
21.5
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
2.1
6.8
9.4
32.3
21.8
8.0
15.6
100.0
0.0
0.1
0.3
0.6
0.9
3.9
6.9
30.8
25.0
9.8
21.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017
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
With Tax Cut
3
With Tax
Increase
83.2
87.2
89.7
93.7
96.4
95.9
77.3
16.7
9.7
7.8
0.4
85.8
0.0
0.0
0.6
0.1
0.2
0.0
0.0
0.4
54.8
87.9
98.1
0.7
Percent
Change in
After-Tax
4
Income
8.4
5.5
2.8
1.8
1.3
1.1
0.6
0.1
-1.0
-3.2
-6.2
1.4
Share of Total
Federal Tax
Change
8.6
33.3
24.4
17.2
10.0
17.5
5.7
1.3
-3.0
-3.7
-11.4
100.0
Average Federal Tax Change
Dollars
-640
-1,031
-812
-657
-575
-675
-499
-163
2,561
19,220
142,939
-600
Percent
124.7
116.8
-121.7
-16.5
-7.6
-5.5
-2.4
-0.5
3.2
10.4
15.4
-8.0
1
Share of Federal Taxes
Change (%
Points)
-0.8
-3.1
-2.0
-0.8
0.0
0.7
1.1
1.8
0.9
0.6
1.5
0.0
Under the
Proposal
-1.4
-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)
-9.0
-5.8
-2.8
-1.6
-1.1
-0.9
-0.5
-0.1
0.8
2.5
4.4
-1.2
Under the
Proposal
-16.3
-10.7
-0.5
8.1
13.2
16.1
19.8
22.6
25.0
26.1
33.0
13.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
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
2,203
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)
-513
-882
667
3,987
7,531
12,248
20,550
34,190
81,009
185,593
925,597
7,521
Average AfterTax Income 4
(Dollars)
7,610
18,699
28,710
37,003
45,152
59,767
80,601
116,295
253,171
598,708
2,314,640
43,902
Average
Federal Tax
Rate 5
-7.2
-5.0
2.3
9.7
14.3
17.0
20.3
22.7
24.2
23.7
28.6
14.6
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
1.4
8.3
11.8
13.3
10.7
21.2
12.6
12.8
4.1
1.6
2.5
100.0
-0.6
-2.3
1.6
8.4
10.4
25.3
18.8
21.9
7.6
2.9
5.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017 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
82.1
96.2
97.2
98.4
99.1
98.7
93.0
85.2
16.8
3.5
1.0
86.6
0.0
0.0
0.1
0.1
0.1
0.0
0.4
0.4
46.5
94.8
97.8
4.9
Percent
Change in
After-Tax
Income 4
8.9
6.7
3.9
2.7
2.1
1.6
1.1
0.7
-0.8
-3.9
-6.6
-0.2
Share of Total
Federal Tax
Change
-16.8
-67.8
-61.9
-48.7
-37.1
-70.9
-49.8
-92.4
67.0
119.7
359.7
100.0
Average Federal Tax Change
Dollars
-672
-1,292
-1,136
-1,000
-984
-983
-910
-901
1,925
22,812
154,877
204
Percent
89.0
79.7
11,189.9
-29.4
-14.1
-8.5
-4.9
-2.6
2.4
10.8
16.3
0.8
Share of Federal Taxes
Change (%
Points)
-0.1
-0.6
-0.5
-0.4
-0.3
-0.7
-0.5
-1.0
0.4
0.9
2.8
0.0
Under the
Proposal
-0.3
-1.3
-0.5
1.0
1.9
6.4
8.1
28.8
24.3
10.3
21.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-9.9
-7.3
-3.9
-2.4
-1.9
-1.4
-0.9
-0.6
0.6
2.9
4.7
0.2
Under the
Proposal
-21.1
-16.4
-3.9
5.9
11.4
14.5
17.3
20.9
25.3
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)
-756
-1,622
-10
3,404
7,003
11,587
18,685
34,615
81,974
211,926
951,222
24,258
Average AfterTax Income 4
(Dollars)
7,540
19,412
29,320
37,640
45,882
61,433
84,037
126,669
249,108
583,581
2,334,788
92,323
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
-11.1
-9.1
0.0
8.3
13.2
15.9
18.2
21.5
24.8
26.6
29.0
20.8
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
3.5
4.0
3.8
9.8
10.1
28.6
19.1
6.8
12.0
100.0
-0.2
-0.7
0.0
1.4
2.2
7.0
8.6
29.8
23.9
9.3
18.5
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 Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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 T09-0155
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
16.2
15.9
21.8
24.7
31.2
42.6
38.9
8.9
7.1
3.5
24.8
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.8
53.8
80.6
91.9
4.1
Percent
Change in
After-Tax
Income 4
1.1
0.5
0.3
0.3
0.3
0.3
0.3
0.2
-1.1
-2.7
-5.3
-0.9
Share of Total
Federal Tax
Change
-0.5
-1.8
-2.2
-1.8
-1.0
-2.6
-3.7
-5.4
20.9
18.5
79.5
100.0
Average Federal Tax Change
Dollars
-65
-86
-86
-116
-132
-180
-282
-246
2,944
16,245
131,784
744
Percent
-27.0
-17.0
-9.6
-6.4
-5.3
-2.8
-2.1
-0.9
4.1
8.6
13.8
4.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.5
-1.4
-0.1
0.4
2.3
0.0
Under the
Proposal
0.1
0.4
0.9
1.1
0.8
3.9
7.3
25.3
22.5
9.9
27.9
100.0
Average Federal Tax Rate5
Change (%
Points)
-1.1
-0.5
-0.3
-0.3
-0.3
-0.3
-0.3
-0.2
0.9
2.0
3.8
0.7
Under the
Proposal
2.9
2.3
2.8
4.2
4.5
8.7
12.9
16.8
22.1
25.7
31.7
17.4
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)
240
506
901
1,808
2,506
6,544
13,502
27,187
71,447
188,646
958,312
16,772
Average AfterTax Income 4
(Dollars)
5,907
17,887
28,513
38,943
50,073
66,951
88,886
133,587
264,902
609,082
2,478,563
83,660
Average
Federal Tax
Rate 5
3.9
2.8
3.1
4.4
4.8
8.9
13.2
16.9
21.2
23.7
27.9
16.7
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
3.3
6.4
5.4
3.4
8.5
10.3
26.3
16.8
6.2
13.3
100.0
0.1
0.5
1.0
1.3
0.9
4.1
7.8
26.7
22.5
9.5
25.6
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 Administration baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.