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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2017
Summary Table
4
Percent of Tax Units
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
5
Income
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
45.8
77.0
92.9
98.9
96.6
78.3
0.6
0.6
0.2
0.1
3.0
0.8
2.5
3.0
3.0
4.0
2.8
3.1
3.7
9.2
14.1
26.2
46.8
100.0
-322
-861
-1,470
-3,257
-6,708
-2,108
-2.4
-2.6
-2.4
-3.1
-2.0
-2.4
3.0
9.3
16.1
19.5
26.1
21.3
99.6
99.5
94.8
59.7
34.1
0.0
0.0
4.7
40.0
65.4
4.4
4.6
3.2
0.2
-0.4
19.2
13.7
13.0
0.9
-0.9
-5,456
-8,018
-9,331
-2,497
23,706
-3.3
-3.4
-2.3
-0.1
0.3
22.0
23.3
25.7
31.1
33.9
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:
31.2
Proposal: 5.4
(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 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
(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.
(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% $20,593, 40% $39,503, 60% $70,723, 80% $123,030, 90% $178,376, 95% $249,239, 99% $652,980, 99.9% $3,012,674.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2017
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
45.8
77.0
92.9
98.9
96.6
78.3
0.6
0.6
0.2
0.1
3.0
0.8
2.5
3.0
3.0
4.0
2.8
3.1
3.7
9.2
14.1
26.2
46.8
100.0
-322
-861
-1,470
-3,257
-6,708
-2,108
-44.1
-21.8
-13.1
-13.7
-7.2
-10.0
-0.3
-0.6
-0.4
-0.8
2.0
0.0
0.5
3.6
10.3
18.3
67.1
100.0
-2.4
-2.6
-2.4
-3.1
-2.0
-2.4
3.0
9.3
16.1
19.5
26.1
21.3
99.6
99.5
94.8
59.7
34.1
0.0
0.0
4.7
40.0
65.4
4.4
4.6
3.2
0.2
-0.4
19.2
13.7
13.0
0.9
-0.9
-5,456
-8,018
-9,331
-2,497
23,706
-13.0
-12.8
-8.1
-0.4
0.7
-0.5
-0.3
0.3
2.5
1.4
14.2
10.4
16.3
26.2
12.9
-3.3
-3.4
-2.3
-0.1
0.3
22.0
23.3
25.7
31.1
33.9
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, 2017 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
40,705
37,758
33,915
28,437
24,688
168,027
24.2
22.5
20.2
16.9
14.7
100.0
13,512
33,137
60,464
105,717
332,349
89,404
731
3,946
11,208
23,853
93,526
21,128
12,781
29,192
49,256
81,864
238,823
68,276
5.4
11.9
18.5
22.6
28.1
23.6
3.7
8.3
13.7
20.0
54.6
100.0
4.5
9.6
14.6
20.3
51.4
100.0
0.8
4.2
10.7
19.1
65.0
100.0
12,437
6,069
4,926
1,257
128
7.4
3.6
2.9
0.8
0.1
165,657
235,719
410,513
2,141,178
9,468,938
41,906
62,834
114,919
668,404
3,182,675
123,751
172,885
295,594
1,472,774
6,286,263
25.3
26.7
28.0
31.2
33.6
13.7
9.5
13.5
17.9
8.1
13.4
9.2
12.7
16.1
7.0
14.7
10.7
15.9
23.7
11.5
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: 31.2
Proposal: 5.4
(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.
(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% $20,593,
40% $39,503, 60% $70,723, 80% $123,030, 90% $178,376, 95% $249,239, 99% $652,980, 99.9% $3,012,674.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
47.7
69.7
86.3
98.1
97.0
78.3
0.1
1.1
0.3
0.1
2.4
0.8
3.9
3.4
3.1
3.7
2.7
3.1
4.6
9.0
13.1
23.7
49.5
100.0
-486
-905
-1,373
-2,665
-5,534
-2,108
-126.2
-27.3
-15.3
-13.1
-7.1
-10.0
-0.5
-0.6
-0.5
-0.6
2.2
0.0
-0.1
2.6
8.0
17.5
71.9
100.0
-3.8
-3.0
-2.6
-2.9
-2.0
-2.4
-0.8
8.0
14.3
19.1
25.9
21.3
99.2
99.4
96.1
64.3
36.5
0.0
0.0
3.2
34.9
62.9
4.0
4.2
3.4
0.4
-0.3
18.8
13.7
15.1
1.9
-0.7
-4,174
-6,113
-8,497
-4,493
17,378
-11.8
-11.5
-8.7
-0.8
0.6
-0.3
-0.2
0.2
2.5
1.4
15.5
11.7
17.5
27.1
13.4
-3.0
-3.1
-2.4
-0.2
0.2
22.1
23.5
25.4
30.7
33.7
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, 2017 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
33,450
35,074
33,747
31,556
31,677
168,027
19.9
20.9
20.1
18.8
18.9
100.0
12,732
30,173
53,321
92,353
279,871
89,404
385
3,313
8,977
20,344
78,044
21,128
12,347
26,861
44,344
72,009
201,827
68,276
3.0
11.0
16.8
22.0
27.9
23.6
2.8
7.0
12.0
19.4
59.0
100.0
3.6
8.2
13.0
19.8
55.7
100.0
0.4
3.3
8.5
18.1
69.6
100.0
15,914
7,953
6,289
1,520
151
9.5
4.7
3.7
0.9
0.1
140,958
200,752
349,936
1,857,869
8,388,125
35,340
53,276
97,310
574,876
2,810,946
105,618
147,477
252,626
1,282,993
5,577,179
25.1
26.5
27.8
30.9
33.5
14.9
10.6
14.7
18.8
8.5
14.7
10.2
13.9
17.0
7.4
15.8
11.9
17.2
24.6
12.0
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: 31.2
Proposal: 5.4
(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.
(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% $14,218, 40% $26,660, 60% $45,355, 80% $75,346, 90% $108,529, 95% $153,499, 99%
$395,591, 99.9% $1,841,089.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
35.5
56.2
83.2
98.2
97.8
68.4
0.1
1.2
0.2
0.1
1.2
0.5
1.9
1.7
1.8
2.4
3.5
2.7
3.8
7.9
11.4
19.2
57.4
100.0
-169
-358
-583
-1,248
-4,500
-1,061
-22.6
-14.5
-8.7
-8.2
-8.7
-9.1
-0.2
-0.3
0.1
0.2
0.3
0.0
1.3
4.7
12.0
21.6
60.4
100.0
-1.7
-1.5
-1.5
-1.9
-2.5
-2.1
5.9
9.1
15.3
21.1
26.1
20.6
98.9
99.1
98.0
72.8
38.7
0.0
0.0
1.0
26.6
60.7
3.6
3.9
5.0
1.5
-0.3
18.0
13.0
20.6
5.9
-0.5
-2,654
-4,120
-8,750
-12,171
11,441
-10.0
-10.6
-12.8
-3.0
0.5
-0.2
-0.2
-0.6
1.2
0.9
16.2
11.0
14.1
19.2
9.4
-2.6
-2.9
-3.6
-1.0
0.2
23.5
24.3
24.4
31.9
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, 2017 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
17,946
17,740
15,791
12,368
10,255
75,772
23.7
23.4
20.8
16.3
13.5
100.0
9,849
23,350
39,855
66,353
181,320
51,323
750
2,476
6,665
15,245
51,751
11,651
9,099
20,874
33,190
51,108
129,569
39,672
5,447
2,527
1,895
386
34
7.2
3.3
2.5
0.5
0.0
101,176
143,504
245,016
1,246,622
6,069,456
26,450
38,988
68,434
410,258
2,212,132
74,726
104,516
176,582
836,364
3,857,323
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.6
10.6
16.7
23.0
28.5
22.7
4.5
10.7
16.2
21.1
47.8
100.0
5.4
12.3
17.4
21.0
44.2
100.0
1.5
5.0
11.9
21.4
60.1
100.0
26.1
27.2
27.9
32.9
36.5
14.2
9.3
11.9
12.4
5.3
13.5
8.8
11.1
10.7
4.3
16.3
11.2
14.7
18.0
8.5
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. 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.
(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% $14,218, 40% $26,660, 60% $45,355, 80% $75,346, 90% $108,529, 95% $153,499, 99%
$395,591, 99.9% $1,841,089.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
48.2
75.0
84.8
97.9
96.6
85.8
0.1
1.3
0.6
0.1
2.9
1.2
5.1
4.1
3.6
4.3
2.6
3.1
2.4
5.6
11.0
26.3
54.7
100.0
-820
-1,427
-2,117
-3,837
-6,256
-3,583
-115.6
-32.7
-19.1
-15.7
-6.7
-9.5
-0.2
-0.4
-0.6
-1.1
2.3
0.0
0.0
1.2
4.9
14.8
79.1
100.0
-4.9
-3.7
-3.1
-3.4
-1.9
-2.4
-0.7
7.6
13.0
18.0
25.8
22.5
99.5
99.6
95.4
61.9
36.2
0.1
0.0
4.1
37.3
63.3
4.1
4.2
3.0
0.2
-0.3
21.5
16.3
15.8
1.1
-0.8
-5,173
-7,186
-8,594
-2,266
16,523
-12.7
-11.8
-7.7
-0.4
0.6
-0.6
-0.3
0.4
2.9
1.5
15.5
12.7
19.8
31.2
15.1
-3.1
-3.1
-2.2
-0.1
0.2
21.5
23.2
25.7
30.4
33.1
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, 2017 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
6,484
8,750
11,696
15,376
19,603
62,623
10.4
14.0
18.7
24.6
31.3
100.0
16,852
38,883
69,198
114,228
335,346
152,719
709
4,364
11,096
24,446
92,905
37,884
16,142
34,519
58,102
89,782
242,441
114,835
9,331
5,082
4,122
1,068
109
14.9
8.1
6.6
1.7
0.2
165,784
230,762
400,541
2,063,034
9,022,743
40,822
60,759
111,546
629,036
2,971,400
124,963
170,003
288,995
1,433,999
6,051,342
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
4.2
11.2
16.0
21.4
27.7
24.8
1.1
3.6
8.5
18.4
68.7
100.0
1.5
4.2
9.5
19.2
66.1
100.0
0.2
1.6
5.5
15.8
76.8
100.0
24.6
26.3
27.9
30.5
32.9
16.2
12.3
17.3
23.0
10.3
16.2
12.0
16.6
21.3
9.2
16.1
13.0
19.4
28.3
13.6
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.
(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% $14,218, 40% $26,660, 60% $45,355, 80% $75,346, 90% $108,529, 95% $153,499, 99%
$395,591, 99.9% $1,841,089.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
71.9
92.0
96.6
99.2
96.8
87.2
0.2
0.7
0.1
0.0
2.1
0.4
5.5
4.8
4.3
3.7
2.4
4.1
17.4
27.8
25.4
18.2
11.2
100.0
-895
-1,526
-2,040
-2,622
-3,852
-1,663
142.4
-39.1
-18.7
-12.6
-6.6
-19.7
-4.8
-3.4
0.3
2.5
5.4
0.0
-7.2
10.6
27.2
30.8
38.6
100.0
-5.7
-4.3
-3.5
-2.9
-1.8
-3.4
-9.7
6.7
15.1
19.8
25.0
13.9
98.7
98.7
94.0
57.1
34.0
0.0
0.0
5.8
42.8
65.8
3.3
3.6
2.2
0.0
-0.6
6.2
2.7
2.3
0.0
-0.2
-3,307
-5,029
-5,523
-193
33,131
-9.6
-10.1
-6.5
0.0
1.3
1.6
0.6
1.2
2.0
1.0
14.3
6.0
8.1
10.3
4.6
-2.5
-2.7
-1.7
0.0
0.4
23.1
23.7
24.1
30.6
33.8
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, 2017 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
8,770
8,213
5,633
3,130
1,317
27,175
32.3
30.2
20.7
11.5
4.9
100.0
15,647
35,755
58,874
91,665
216,103
49,021
-628
3,903
10,931
20,787
57,964
8,451
16,275
31,852
47,943
70,878
158,139
40,570
845
247
187
39
3
3.1
0.9
0.7
0.1
0.0
135,186
188,332
332,770
1,587,850
7,937,589
34,507
49,708
85,659
486,364
2,653,213
100,679
138,624
247,111
1,101,486
5,284,377
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-4.0
10.9
18.6
22.7
26.8
17.2
10.3
22.0
24.9
21.5
21.4
100.0
13.0
23.7
24.5
20.1
18.9
100.0
-2.4
14.0
26.8
28.3
33.2
100.0
25.5
26.4
25.7
30.6
33.4
8.6
3.5
4.7
4.6
1.9
7.7
3.1
4.2
3.9
1.5
12.7
5.3
7.0
8.2
3.6
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.
(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% $14,218, 40% $26,660, 60% $45,355, 80% $75,346, 90% $108,529, 95% $153,499, 99%
$395,591, 99.9% $1,841,089.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
81.3
97.9
99.3
99.8
95.9
94.4
0.2
0.3
0.0
0.0
4.0
0.8
6.9
5.9
5.0
5.3
2.6
4.1
7.4
12.6
17.4
29.4
33.1
100.0
-1,245
-2,098
-2,919
-4,950
-6,765
-3,457
152.2
-44.1
-20.9
-17.0
-6.4
-12.5
-1.1
-1.3
-1.0
-1.1
4.6
0.0
-1.8
2.3
9.4
20.5
69.4
100.0
-7.3
-5.2
-4.0
-4.0
-1.9
-3.1
-12.0
6.6
15.3
19.7
27.4
21.4
99.9
99.8
90.7
49.1
24.8
0.0
0.1
9.0
50.7
75.1
4.7
4.7
2.1
-0.2
-0.6
16.7
10.7
6.5
-0.9
-0.9
-6,466
-9,176
-7,091
3,933
44,443
-12.9
-12.2
-5.1
0.5
1.2
-0.1
0.0
1.4
3.2
1.6
16.1
11.1
17.3
24.9
11.4
-3.4
-3.4
-1.5
0.2
0.4
23.0
24.5
27.7
32.8
34.4
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, 2017 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
10,432
10,570
10,488
10,438
8,587
50,838
20.5
20.8
20.6
20.5
16.9
100.0
17,171
40,353
72,386
122,710
362,965
113,062
-818
4,756
13,977
29,076
106,113
27,626
17,988
35,596
58,409
93,634
256,852
85,435
4,538
2,056
1,608
385
36
8.9
4.0
3.2
0.8
0.1
189,201
270,179
478,067
2,423,697
11,187,796
49,998
75,448
139,532
790,992
3,808,308
139,202
194,731
338,535
1,632,705
7,379,488
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-4.8
11.8
19.3
23.7
29.2
24.4
3.1
7.4
13.2
22.3
54.2
100.0
4.3
8.7
14.1
22.5
50.8
100.0
-0.6
3.6
10.4
21.6
64.9
100.0
26.4
27.9
29.2
32.6
34.0
14.9
9.7
13.4
16.3
7.1
14.5
9.2
12.5
14.5
6.2
16.2
11.0
16.0
21.7
9.9
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: 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.
(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% $14,218, 40% $26,660, 60% $45,355, 80% $75,346, 90% $108,529, 95% $153,499, 99%
$395,591, 99.9% $1,841,089.
(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 T10-0041
Administration's FY2011 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
9.1
27.6
52.4
92.9
96.7
52.6
0.1
0.1
0.3
0.1
2.0
0.5
0.5
0.8
1.0
2.8
3.6
2.7
0.5
2.8
5.0
16.4
75.2
100.0
-56
-194
-450
-2,054
-7,848
-1,929
-18.5
-19.5
-16.7
-18.0
-10.2
-11.4
0.0
-0.2
-0.2
-0.8
1.2
0.0
0.3
1.5
3.2
9.6
85.3
100.0
-0.4
-0.7
-1.0
-2.4
-2.6
-2.2
1.9
3.1
4.9
11.1
23.3
17.2
98.4
98.6
98.0
74.1
45.3
0.1
0.1
1.0
24.0
54.4
4.5
4.7
5.4
1.3
0.1
19.9
15.9
28.9
10.5
0.3
-4,610
-6,781
-12,844
-15,745
-3,620
-18.7
-16.8
-15.9
-3.0
-0.1
-1.0
-0.7
-1.1
3.9
2.6
11.2
10.2
19.7
44.3
23.3
-3.6
-3.7
-4.0
-0.9
-0.1
15.7
18.3
21.4
29.9
33.6
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, 2017 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
5,486
9,944
7,536
5,425
6,505
35,193
15.6
28.3
21.4
15.4
18.5
100.0
12,851
26,105
46,194
84,549
297,285
87,173
302
997
2,690
11,399
76,966
16,901
12,549
25,108
43,504
73,150
220,319
70,272
2,933
1,593
1,528
451
49
8.3
4.5
4.3
1.3
0.1
127,727
183,292
318,053
1,732,517
7,447,999
24,648
40,336
80,884
533,402
2,503,384
103,079
142,957
237,170
1,199,114
4,944,616
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.4
3.8
5.8
13.5
25.9
19.4
2.3
8.5
11.4
15.0
63.0
100.0
2.8
10.1
13.3
16.1
58.0
100.0
0.3
1.7
3.4
10.4
84.2
100.0
19.3
22.0
25.4
30.8
33.6
12.2
9.5
15.8
25.5
11.9
12.2
9.2
14.7
21.9
9.8
12.2
10.8
20.8
40.4
20.6
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.
(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% $14,218, 40% $26,660, 60% $45,355, 80% $75,346, 90% $108,529, 95% $153,499, 99%
$395,591, 99.9% $1,841,089.
(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.