4-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 T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
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 ($)
1
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
30.4
40.3
41.6
37.8
20.4
34.4
0.5
1.2
0.5
0.1
12.6
2.4
2.0
1.0
0.6
0.3
-1.8
-0.6
-15.2
-16.9
-14.2
-11.2
157.9
100.0
-216
-264
-244
-229
3,698
347
-1.9
-0.9
-0.5
-0.3
1.3
0.5
2.7
9.2
15.7
18.8
26.3
21.1
26.4
20.2
10.1
2.6
0.2
0.1
0.7
40.0
86.9
97.5
0.3
0.2
-0.7
-5.3
-6.7
-5.9
-2.3
15.8
150.2
84.8
-273
-222
1,857
68,906
385,882
-0.2
-0.1
0.5
3.8
4.6
21.4
22.8
25.4
32.4
35.8
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:
5.0
Proposal: 4.0
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation;
makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value
for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child
tax credit refundability threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions
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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
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 Rate 6
Change (%
Points)
Under the
Proposal
30.4
40.3
41.6
37.8
20.4
34.4
0.5
1.2
0.5
0.1
12.6
2.4
2.0
1.0
0.6
0.3
-1.8
-0.6
-15.2
-16.9
-14.2
-11.2
157.9
100.0
-216
-264
-244
-229
3,698
347
-40.6
-9.0
-2.9
-1.4
5.3
2.2
-0.4
-0.5
-0.5
-0.6
2.0
0.0
0.5
3.7
10.3
17.6
67.7
100.0
-1.9
-0.9
-0.5
-0.3
1.3
0.5
2.7
9.2
15.7
18.8
26.3
21.1
26.4
20.2
10.1
2.6
0.2
0.1
0.7
40.0
86.9
97.5
0.3
0.2
-0.7
-5.3
-6.7
-5.9
-2.3
15.8
150.2
84.8
-273
-222
1,857
68,906
385,882
-0.9
-0.5
2.2
13.2
14.8
-0.4
-0.3
0.0
2.7
1.6
13.7
10.1
16.1
27.8
14.2
-0.2
-0.1
0.5
3.8
4.6
21.4
22.8
25.4
32.4
35.8
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, 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
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
531
2,929
8,458
16,997
69,940
15,750
11,069
25,923
43,766
71,981
210,289
60,419
4.6
10.2
16.2
19.1
25.0
20.7
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.5
14.7
20.2
51.5
100.0
0.8
4.1
10.9
18.3
65.8
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
29,910
44,948
85,734
522,940
2,606,444
108,475
151,600
259,840
1,302,248
5,760,830
21.6
22.9
24.8
28.7
31.2
13.5
9.4
13.4
18.1
8.4
13.4
9.1
12.7
16.3
7.3
14.2
10.4
16.1
25.1
12.6
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: 5.0
Proposal: 4.0
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
38.0
38.0
44.3
35.4
16.8
34.4
0.1
1.6
0.6
0.1
9.9
2.4
3.0
1.0
0.6
0.3
-1.6
-0.6
-18.7
-14.2
-13.4
-11.8
158.5
100.0
-322
-240
-235
-215
2,890
347
-287.2
-11.0
-3.4
-1.5
4.9
2.2
-0.4
-0.4
-0.5
-0.6
1.9
0.0
-0.3
2.5
8.2
16.8
72.6
100.0
-3.0
-0.9
-0.5
-0.3
1.2
0.5
-1.9
7.4
14.3
18.3
26.1
21.1
22.0
15.0
9.2
2.3
0.2
0.0
0.3
29.0
83.6
95.4
0.2
0.1
-0.6
-5.1
-6.5
-5.7
-1.8
15.3
150.8
86.8
-207
-132
1,404
57,287
332,739
-0.8
-0.3
1.9
12.7
14.6
-0.5
-0.3
0.0
2.7
1.6
15.1
11.5
17.3
28.8
14.7
-0.2
-0.1
0.5
3.6
4.5
21.6
23.0
25.1
32.1
35.4
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, 20121
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
112
2,184
6,866
14,437
58,562
15,750
10,823
24,023
39,456
63,128
176,985
60,419
1.0
8.3
14.8
18.6
24.9
20.7
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
19.9
55.7
100.0
0.1
2.9
8.7
17.5
70.7
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
25,601
38,625
72,379
450,784
2,275,425
92,057
128,545
221,833
1,133,941
5,084,768
21.8
23.1
24.6
28.5
30.9
14.7
10.5
14.6
19.0
8.7
14.5
10.2
13.9
17.1
7.6
15.5
11.8
17.4
26.1
13.1
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: 5.0
Proposal: 4.0
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
20.7
21.0
33.5
19.5
10.9
21.6
0.0
1.6
0.2
0.0
5.4
1.1
1.5
0.6
0.5
0.2
-1.0
-0.2
-48.7
-39.2
-51.1
-30.3
272.0
100.0
-116
-103
-148
-107
1,151
59
-19.7
-4.9
-2.6
-0.9
3.0
0.7
-0.3
-0.3
-0.4
-0.3
1.4
0.0
1.3
4.9
12.3
20.8
60.6
100.0
-1.4
-0.5
-0.4
-0.2
0.8
0.1
5.7
10.1
16.3
20.4
26.3
20.9
14.1
8.6
6.8
2.1
0.1
0.0
0.0
12.5
79.4
95.9
0.2
0.1
-0.1
-4.3
-6.5
-15.0
-4.5
7.8
283.7
176.4
-120
-77
176
31,913
226,123
-0.6
-0.3
0.4
9.9
12.8
-0.2
-0.1
0.0
1.7
1.1
15.5
10.8
14.1
20.1
10.0
-0.1
-0.1
0.1
3.0
4.3
23.1
24.3
24.3
33.3
38.1
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, 20121
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
591
2,115
5,725
11,507
38,836
9,128
7,789
17,855
28,536
44,326
113,142
34,749
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
19,525
28,942
49,619
321,259
1,771,848
64,512
90,090
154,929
739,373
3,471,259
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
7.1
10.6
16.7
20.6
25.6
20.8
4.7
10.2
15.9
21.3
48.2
100.0
5.5
11.5
16.7
21.4
45.3
100.0
1.6
5.2
12.7
21.1
59.2
100.0
23.2
24.3
24.3
30.3
33.8
14.1
9.3
12.1
12.7
5.5
13.6
8.9
11.6
11.1
4.6
15.7
10.9
14.2
18.4
8.9
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. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
44.6
52.4
53.1
47.6
20.0
40.3
0.0
1.2
1.3
0.2
12.3
4.2
3.0
1.3
0.6
0.4
-1.8
-0.9
-5.1
-6.2
-6.2
-7.6
125.1
100.0
-433
-390
-303
-285
3,796
920
-370.9
-15.2
-3.8
-1.7
5.5
3.4
-0.2
-0.3
-0.4
-0.8
1.6
0.0
-0.1
1.1
5.1
14.3
79.4
100.0
-3.0
-1.2
-0.5
-0.3
1.4
0.7
-2.2
6.5
12.8
17.2
26.0
22.2
27.2
17.9
10.6
2.6
0.2
0.0
0.3
36.1
84.5
95.0
0.3
0.1
-0.8
-5.2
-6.5
-4.2
-1.3
13.7
117.0
65.1
-269
-156
1,984
65,062
359,156
-0.9
-0.4
2.4
13.3
15.0
-0.7
-0.5
-0.2
2.9
1.7
15.0
12.3
19.4
32.8
16.4
-0.2
-0.1
0.6
3.7
4.6
20.9
22.6
25.3
31.7
34.9
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, 20121
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
117
2,562
7,909
16,631
69,430
27,037
14,409
30,843
51,762
78,392
212,412
98,983
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
29,238
43,636
83,500
489,332
2,392,764
109,074
148,455
254,223
1,259,132
5,497,613
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.8
7.7
13.3
17.5
24.6
21.5
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.8
19.4
65.1
100.0
0.1
1.4
5.5
15.1
77.9
100.0
21.1
22.7
24.7
28.0
30.3
15.9
12.0
17.0
23.0
10.5
15.9
11.8
16.3
21.1
9.3
15.6
12.7
19.6
30.0
14.8
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. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
70.7
56.6
56.4
39.8
16.8
57.0
0.2
2.2
0.4
0.0
5.8
1.1
4.7
1.2
0.8
0.5
-1.0
1.0
59.8
29.7
19.3
9.8
-18.7
100.0
-683
-354
-339
-317
1,346
-365
70.7
-19.8
-4.5
-2.1
3.1
-6.4
-4.5
-1.4
0.6
1.4
3.9
0.0
-9.9
8.2
28.2
31.1
42.3
100.0
-5.1
-1.2
-0.7
-0.4
0.8
-0.9
-12.2
4.7
14.4
19.1
25.0
12.8
19.1
19.2
6.6
0.2
0.5
0.0
0.1
24.5
91.0
98.4
0.1
0.2
-0.4
-5.0
-6.6
1.1
0.6
-1.7
-18.7
-10.2
-126
-230
863
50,754
314,491
-0.5
-0.6
1.3
12.4
14.6
0.9
0.4
0.7
1.9
1.0
15.7
6.3
8.7
11.6
5.5
-0.1
-0.2
0.3
3.6
4.5
22.7
23.1
23.6
32.3
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, 20121
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
-965
1,792
7,575
14,983
43,239
5,698
14,455
28,825
42,700
61,898
135,282
36,062
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
25,684
36,005
64,856
408,525
2,156,597
87,079
118,888
213,562
1,015,074
4,793,906
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-7.2
5.9
15.1
19.5
24.2
13.6
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.4
24.6
19.4
19.0
100.0
-5.4
9.6
27.6
29.8
38.4
100.0
22.8
23.3
23.3
28.7
31.0
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.8
1.6
14.8
6.0
8.0
9.7
4.5
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).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
78.3
72.0
66.7
51.2
25.4
59.9
0.2
1.4
0.2
0.0
15.2
3.0
5.1
1.7
0.8
0.5
-2.0
-0.4
-54.3
-37.1
-28.6
-25.3
245.7
100.0
-810
-542
-422
-390
4,469
308
62.2
-26.6
-4.5
-2.0
5.7
1.6
-0.8
-0.6
-0.6
-0.7
2.8
0.0
-2.2
1.6
9.5
19.4
71.5
100.0
-5.5
-1.6
-0.7
-0.4
1.5
0.3
-14.3
4.3
14.4
18.6
27.2
20.6
34.3
23.2
8.8
1.8
0.2
0.0
0.8
57.1
93.5
99.1
0.4
0.2
-1.3
-6.1
-7.0
-13.0
-3.5
40.0
222.3
112.9
-448
-269
3,863
89,855
473,732
-1.3
-0.5
3.7
14.5
15.4
-0.5
-0.2
0.4
3.1
1.6
15.8
10.8
17.5
27.4
13.2
-0.3
-0.1
1.0
4.3
4.8
22.1
23.6
27.0
33.9
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, 20121
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
-1,302
2,038
9,395
19,572
78,732
19,366
16,025
32,634
52,903
83,570
227,331
76,053
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
35,216
53,216
104,147
618,704
3,077,034
122,280
171,329
296,208
1,469,751
6,762,660
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-8.8
5.9
15.1
19.0
25.7
20.3
3.2
7.7
13.6
21.6
54.3
100.0
4.3
9.0
14.5
21.9
50.6
100.0
-1.4
2.2
10.1
20.2
68.8
100.0
22.4
23.7
26.0
29.6
31.3
14.8
9.5
13.4
16.7
7.6
14.4
9.1
12.4
14.7
6.5
16.3
11.1
17.2
24.3
11.7
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. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0039
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
6.0
5.7
10.3
15.3
7.2
8.6
0.0
0.2
0.2
0.2
11.0
2.1
0.3
0.1
0.1
0.1
-1.7
-1.0
-0.7
-0.8
-1.0
-1.7
104.2
100.0
-26
-19
-31
-55
3,370
595
-10.1
-2.2
-1.3
-0.7
5.7
4.6
-0.1
-0.1
-0.2
-0.5
0.9
0.0
0.3
1.6
3.3
10.1
84.5
100.0
-0.2
-0.1
-0.1
-0.1
1.3
0.8
2.2
3.7
5.7
10.9
24.3
17.9
8.5
6.9
6.6
2.1
0.2
0.0
0.0
20.1
77.3
95.8
0.0
0.0
-0.3
-4.2
-6.1
-0.5
-0.3
4.5
100.5
63.8
-35
-36
588
42,064
273,143
-0.2
-0.1
1.0
10.6
13.3
-0.5
-0.4
-0.7
2.5
1.8
9.6
9.2
19.8
46.0
23.8
0.0
0.0
0.2
3.0
4.2
15.5
18.3
22.0
31.5
35.7
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, 20121
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
262
845
2,350
7,708
59,067
12,990
10,637
21,683
38,744
62,530
197,981
62,747
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
16,363
27,984
58,445
397,639
2,053,637
89,081
125,118
209,437
999,322
4,466,454
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.4
3.8
5.7
11.0
23.0
17.2
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.3
12.1
17.9
58.0
100.0
0.3
1.8
3.5
10.7
83.6
100.0
15.5
18.3
21.8
28.5
31.5
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.2
22.6
9.9
10.0
9.6
20.5
43.5
21.9
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).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts permanent
and makes 2009 estate tax law permanent. The proposal would: (a) extend the higher EITC credit value for families with 3 children and higher phase-out thresholds for married couples; (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 the $3,000 child tax credit refundability
threshold; (f) raise the child and dependent care tax credit phase-out threshold to $85,000; (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; (j) limit value of itemized deductions 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) 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.