8-Feb-10
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 T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Summary Table
Cash Income
2,3
Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units 4
With Tax Cut
With Tax
Increase
Percent
Change in
After-Tax
Income 5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
44.8
81.2
93.6
98.6
95.8
79.0
10.0
8.3
4.1
1.0
4.1
6.0
2.5
3.3
2.9
3.4
2.3
2.7
4.3
11.5
15.7
24.8
43.6
100.0
-278
-828
-1,233
-2,339
-4,695
-1,594
-2.4
-2.9
-2.4
-2.6
-1.7
-2.1
2.8
9.3
15.8
18.9
26.6
21.3
99.2
98.9
94.8
51.6
23.4
0.7
1.1
5.2
48.4
76.6
4.1
3.8
2.9
-0.5
-1.4
20.2
12.7
13.4
-2.7
-3.5
-4,318
-5,576
-7,230
5,748
73,402
-3.1
-2.8
-2.1
0.3
0.9
21.5
22.9
25.6
33.0
36.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4.
Number of AMT Taxpayers (millions). Baseline:
19.5
Proposal: 4.0
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds
for married couples and allow it against the AMT; (b) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples)
and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax credit refundability with a $3,000
refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phaseout threshold to $85,000, and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two
personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation
after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single),
indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets
held for more than 5 years; (j) limit value of itemized deduction s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax
cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified
dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as
ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2009 dollars): 20% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
44.8
81.2
93.6
98.6
95.8
79.0
10.0
8.3
4.1
1.0
4.1
6.0
2.5
3.3
2.9
3.4
2.3
2.7
4.3
11.5
15.7
24.8
43.6
100.0
-278
-828
-1,233
-2,339
-4,695
-1,594
-46.5
-23.6
-13.0
-12.2
-5.9
-8.9
-0.3
-0.7
-0.5
-0.7
2.2
0.0
0.5
3.7
10.3
17.6
67.9
100.0
-2.4
-2.9
-2.4
-2.6
-1.7
-2.1
2.8
9.3
15.8
18.9
26.6
21.3
99.2
98.9
94.8
51.6
23.4
0.7
1.1
5.2
48.4
76.6
4.1
3.8
2.9
-0.5
-1.4
20.2
12.7
13.4
-2.7
-3.5
-4,318
-5,576
-7,230
5,748
73,402
-12.7
-11.0
-7.6
1.0
2.5
-0.6
-0.2
0.2
2.8
1.6
13.7
10.1
16.1
28.0
14.3
-3.1
-2.8
-2.1
0.3
0.9
21.5
22.9
25.6
33.0
36.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
599
3,509
9,475
19,164
79,103
17,826
11,001
25,343
42,749
69,814
201,126
58,343
5.2
12.2
18.1
21.5
28.2
23.4
3.7
8.4
13.9
19.8
54.5
100.0
4.6
9.7
14.8
20.3
51.0
100.0
0.8
4.4
10.8
18.2
65.7
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
34,076
50,547
95,585
595,812
2,978,313
104,309
146,002
249,989
1,229,376
5,388,961
24.6
25.7
27.7
32.6
35.6
13.5
9.4
13.4
18.1
8.4
13.3
9.1
12.7
15.9
7.0
14.2
10.3
15.9
25.3
12.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 19.5
Proposal: 4.0
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b)
modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e)
extend child tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out
threshold to $85,000, and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000
less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI
(married) and $200,000 (single), indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized
deduction s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets,
the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as
ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2009 dollars): 20% $19,356,
40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
44.8
73.9
88.6
98.3
96.1
79.0
9.0
8.9
6.5
1.3
3.6
6.0
4.1
3.7
3.1
3.2
2.2
2.7
5.5
11.1
14.9
23.4
45.0
100.0
-438
-857
-1,197
-1,960
-3,771
-1,594
-188.4
-30.5
-15.2
-12.1
-5.7
-8.9
-0.5
-0.8
-0.6
-0.6
2.5
0.0
-0.3
2.5
8.1
16.7
72.8
100.0
-4.0
-3.3
-2.6
-2.5
-1.6
-2.1
-1.9
7.5
14.4
18.4
26.4
21.3
98.6
98.8
96.0
55.9
26.1
1.0
0.9
4.0
44.1
73.9
3.5
3.5
3.0
-0.3
-1.3
18.6
13.1
15.0
-1.7
-3.5
-3,099
-4,359
-6,339
2,912
60,771
-10.8
-10.1
-7.9
0.6
2.3
-0.3
-0.2
0.2
2.8
1.6
15.0
11.4
17.3
29.1
14.8
-2.6
-2.6
-2.2
0.2
0.8
21.7
23.1
25.3
32.6
36.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
31,706
32,349
31,237
29,980
29,936
157,348
20.2
20.6
19.9
19.1
19.0
100.0
10,935
26,208
46,322
77,565
235,547
76,169
233
2,812
7,852
16,224
65,847
17,826
10,703
23,395
38,471
61,342
169,700
58,343
2.1
10.7
17.0
20.9
28.0
23.4
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.2
13.1
20.0
55.3
100.0
0.3
3.2
8.7
17.3
70.3
100.0
15,019
7,540
5,940
1,436
142
9.6
4.8
3.8
0.9
0.1
117,658
167,170
294,212
1,584,726
7,360,192
28,579
43,043
80,760
513,626
2,599,522
89,079
124,127
213,452
1,071,100
4,760,670
24.3
25.8
27.5
32.4
35.3
14.7
10.5
14.6
19.0
8.7
14.6
10.2
13.8
16.8
7.4
15.3
11.6
17.1
26.3
13.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 19.5
Proposal: 4.0
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax credit
refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,000, and allow
against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one
personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction s to
28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on
capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
30.8
62.8
88.0
97.7
96.1
69.5
9.7
12.2
6.4
1.9
3.3
7.4
1.7
1.8
2.1
1.9
2.8
2.3
4.2
9.2
15.0
17.4
54.1
100.0
-133
-321
-581
-818
-3,056
-787
-21.7
-13.7
-9.4
-6.7
-7.0
-7.8
-0.2
-0.3
-0.2
0.3
0.5
0.0
1.3
4.9
12.3
20.7
60.8
100.0
-1.6
-1.6
-1.7
-1.5
-2.0
-1.8
5.7
10.1
16.4
20.5
26.6
21.1
97.6
98.2
96.0
61.1
25.6
1.7
1.1
4.0
38.8
74.4
2.8
3.3
4.2
1.0
-1.2
16.5
12.7
20.4
4.4
-2.3
-1,769
-2,906
-6,172
-6,597
39,976
-8.3
-9.1
-10.9
-1.8
2.0
-0.1
-0.2
-0.5
1.3
1.0
15.5
10.8
14.2
20.3
10.1
-2.1
-2.4
-3.0
-0.6
0.8
23.2
24.4
24.7
33.9
38.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
16,972
15,474
14,005
11,543
9,596
68,932
24.6
22.5
20.3
16.8
13.9
100.0
8,380
19,970
34,261
55,833
151,979
43,878
611
2,345
6,183
12,256
43,502
10,053
7,769
17,625
28,078
43,577
108,477
33,825
5,066
2,373
1,795
361
32
7.4
3.4
2.6
0.5
0.1
84,037
119,032
204,548
1,060,631
5,243,107
21,258
31,966
56,595
366,389
1,999,153
62,779
87,066
147,953
694,243
3,243,953
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.3
11.7
18.1
22.0
28.6
22.9
4.7
10.2
15.9
21.3
48.2
100.0
5.7
11.7
16.9
21.6
44.6
100.0
1.5
5.2
12.5
20.4
60.2
100.0
25.3
26.9
27.7
34.5
38.1
14.1
9.3
12.1
12.7
5.5
13.6
8.9
11.4
10.8
4.4
15.5
11.0
14.7
19.1
9.1
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b)
modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e)
extend child tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out
threshold to $85,000, and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000
less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI
(married) and $200,000 (single), indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized
deduction s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets,
the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as
ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99%
$361,983, 99.9% $1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
47.0
74.8
85.0
98.6
96.2
85.4
14.8
9.7
9.2
1.1
3.8
6.3
5.2
4.6
3.5
3.8
2.1
2.7
3.0
7.6
12.6
26.7
50.0
100.0
-734
-1,359
-1,757
-2,843
-4,298
-2,607
-171.5
-38.3
-18.7
-14.8
-5.5
-8.5
-0.3
-0.6
-0.6
-1.1
2.5
0.0
-0.1
1.1
5.1
14.3
79.5
100.0
-5.1
-4.1
-2.9
-3.0
-1.5
-2.1
-2.1
6.6
12.8
17.3
26.2
22.4
99.3
99.2
96.0
54.7
26.6
0.7
0.7
4.0
45.3
73.4
3.8
3.6
2.7
-0.5
-1.2
22.0
15.6
16.0
-3.5
-4.1
-3,966
-5,141
-6,575
5,544
63,293
-12.0
-10.5
-7.1
1.0
2.3
-0.6
-0.3
0.3
3.1
1.8
14.9
12.2
19.4
33.1
16.6
-2.9
-2.7
-2.0
0.3
0.8
21.0
22.7
25.5
32.2
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,622
8,956
11,470
15,032
18,609
61,357
10.8
14.6
18.7
24.5
30.3
100.0
14,526
33,405
59,671
95,023
281,842
126,020
428
3,549
9,392
19,237
78,238
30,803
14,098
29,855
50,279
75,786
203,604
95,217
8,860
4,843
3,890
1,015
102
14.4
7.9
6.3
1.7
0.2
138,312
192,091
337,723
1,748,464
7,890,377
33,025
48,811
92,709
557,743
2,743,003
105,286
143,280
245,014
1,190,721
5,147,375
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
3.0
10.6
15.7
20.2
27.8
24.4
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.5
64.9
100.0
0.2
1.7
5.7
15.3
77.0
100.0
23.9
25.4
27.5
31.9
34.8
15.9
12.0
17.0
23.0
10.5
16.0
11.9
16.3
20.7
9.0
15.5
12.5
19.1
30.0
14.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b)
modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e)
extend child tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out
threshold to $85,000, and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000
less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI
(married) and $200,000 (single), indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized
deduction s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets,
the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as
ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99%
$361,983, 99.9% $1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
73.1
94.5
97.3
99.5
96.6
88.6
2.6
1.6
1.4
0.2
2.8
1.8
6.0
4.9
4.0
3.3
1.9
4.0
19.8
30.2
24.6
16.3
9.0
100.0
-858
-1,366
-1,639
-1,999
-2,473
-1,384
108.9
-48.7
-18.5
-12.0
-5.2
-20.5
-6.1
-4.5
0.7
3.0
6.9
0.0
-9.8
8.2
28.1
31.0
42.4
100.0
-6.4
-4.5
-3.3
-2.6
-1.4
-3.3
-12.2
4.7
14.4
19.1
25.2
12.8
98.4
98.3
95.3
48.7
23.1
1.0
0.8
4.7
51.4
76.9
2.6
2.9
1.9
-0.6
-1.5
5.3
2.3
2.1
-0.5
-0.6
-2,222
-3,315
-4,048
5,563
66,475
-8.0
-8.4
-5.8
1.2
2.7
2.1
0.8
1.4
2.5
1.3
15.7
6.3
8.7
11.7
5.6
-2.0
-2.1
-1.5
0.4
1.0
22.7
23.2
23.8
32.8
36.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
7,840
7,497
5,095
2,777
1,242
24,547
31.9
30.5
20.8
11.3
5.1
100.0
13,490
30,617
50,275
76,881
178,521
41,760
-789
2,806
8,884
16,686
47,379
6,738
14,278
27,811
41,391
60,195
131,142
35,022
805
232
173
33
3
3.3
0.9
0.7
0.1
0.0
112,763
154,893
278,418
1,423,600
6,950,503
27,833
39,264
70,246
460,786
2,450,334
84,930
115,629
208,172
962,813
4,500,170
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.9
9.2
17.7
21.7
26.5
16.1
10.3
22.4
25.0
20.8
21.6
100.0
13.0
24.3
24.5
19.4
18.9
100.0
-3.7
12.7
27.4
28.0
35.6
100.0
24.7
25.4
25.2
32.4
35.3
8.9
3.5
4.7
4.6
2.0
8.0
3.1
4.2
3.7
1.5
13.5
5.5
7.3
9.2
4.3
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b)
modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e)
extend child tax credit refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out
threshold to $85,000, and allow against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000
less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI
(married) and $200,000 (single), indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized
deduction s to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets,
the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as
ordinary income, repealing LIFO, international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99%
$361,983, 99.9% $1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table - Tax Units with Children
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
79.9
98.0
99.1
99.7
96.0
94.1
1.8
0.7
0.6
0.2
4.0
1.4
7.3
6.3
4.6
4.8
2.2
3.7
8.7
15.3
18.2
28.1
29.7
100.0
-1,142
-1,963
-2,365
-3,812
-4,757
-2,710
118.2
-56.7
-20.8
-16.6
-5.4
-12.0
-1.3
-1.7
-1.1
-1.1
5.1
0.0
-2.2
1.6
9.5
19.4
71.7
100.0
-7.8
-5.7
-3.8
-3.7
-1.6
-2.8
-14.3
4.3
14.4
18.6
27.4
20.7
99.9
99.8
92.9
43.8
17.9
0.1
0.2
7.1
56.2
82.1
4.2
3.9
2.1
-0.8
-1.5
16.2
9.6
7.1
-3.1
-2.6
-4,890
-6,469
-6,032
11,190
96,342
-12.3
-10.9
-5.3
1.6
2.7
-0.1
0.1
1.3
3.7
1.9
15.8
10.8
17.5
27.6
13.4
-3.1
-2.9
-1.5
0.5
1.0
22.1
23.7
27.1
34.4
36.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
10,133
10,359
10,251
9,800
8,315
49,155
20.6
21.1
20.9
19.9
16.9
100.0
14,723
34,672
62,298
103,142
306,063
95,419
-967
3,464
11,351
23,023
88,566
22,496
15,690
31,209
50,947
80,119
217,497
72,923
4,398
1,976
1,567
374
36
9.0
4.0
3.2
0.8
0.1
157,496
224,546
400,356
2,088,455
9,839,694
39,721
59,571
114,595
706,992
3,520,023
117,775
164,974
285,760
1,381,462
6,319,671
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-6.6
10.0
18.2
22.3
28.9
23.6
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.0
14.6
21.9
50.5
100.0
-0.9
3.2
10.5
20.4
66.6
100.0
25.2
26.5
28.6
33.9
35.8
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.5
14.4
6.4
15.8
10.7
16.2
23.9
11.5
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax credit
refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,000, and allow
against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one
personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction s to
28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on
capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
8-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0033
Administration's FY2011 Budget Proposals
Major Individual Income and Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table - Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
8.3
30.6
56.4
94.5
93.3
54.8
23.0
23.9
26.3
4.5
6.2
17.3
0.4
0.7
1.2
2.0
2.7
2.1
0.5
2.9
6.9
17.1
72.6
100.0
-37
-140
-454
-1,225
-5,085
-1,289
-13.3
-14.1
-16.0
-13.6
-7.4
-8.5
0.0
-0.1
-0.3
-0.6
1.0
0.0
0.3
1.7
3.4
10.1
84.6
100.0
-0.3
-0.6
-1.1
-1.7
-2.0
-1.7
2.3
3.8
5.8
11.1
24.8
18.3
95.4
96.8
96.6
59.3
30.1
3.6
2.8
3.4
40.7
69.9
3.5
3.9
4.6
0.5
-1.1
18.7
16.1
32.1
5.6
-5.0
-3,039
-4,653
-9,059
-5,120
46,022
-15.5
-14.0
-13.1
-1.1
2.0
-0.8
-0.6
-1.0
3.4
2.5
9.5
9.2
19.8
46.1
23.8
-2.9
-3.0
-3.4
-0.4
0.7
15.7
18.6
22.5
32.2
36.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
5,016
8,213
5,981
5,495
5,617
30,543
16.4
26.9
19.6
18.0
18.4
100.0
10,899
22,528
41,094
70,238
257,048
75,737
282
990
2,833
8,989
68,880
15,163
10,616
21,538
38,260
61,249
188,168
60,574
2,427
1,362
1,394
434
42
8.0
4.5
4.6
1.4
0.1
105,444
153,103
267,882
1,396,961
6,520,091
19,632
33,136
69,367
455,137
2,337,228
85,813
119,966
198,515
941,824
4,182,863
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.6
4.4
6.9
12.8
26.8
20.0
2.4
8.0
10.6
16.7
62.4
100.0
2.9
9.6
12.4
18.2
57.1
100.0
0.3
1.8
3.7
10.7
83.5
100.0
18.6
21.6
25.9
32.6
35.9
11.1
9.0
16.1
26.2
12.0
11.3
8.8
15.0
22.1
9.6
10.3
9.8
20.9
42.6
21.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples and allow it against the AMT; (b) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (c) create automatic 401(k)s and IRAs; (d) extend the American Opportunity Tax Credit; (e) extend child tax credit
refundability with a $3,000 refundability threshold, extend the $1,000 credit, and allow against the AMT; (f) extend the higher 35 percent child and dependent care tax credit rate, raise the phase-out threshold to $85,000, and allow
against the AMT; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one
personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for
inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction s to
28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals including marriage penalty relief, the 10,15, 25, 28 percent brackets, the 15 percent rate on
capital gains and qualified dividends for taxpayers in those brackets. Business provisions included were making the research and experimentation tax credit permanent, taxing carried interest as ordinary income, repealing LIFO,
international corporate tax reforms, and reforms affecting the tax treatment of financial institutions.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.