21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
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
5
Income
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.2
0.6
1.7
10.4
17.9
69.1
100.0
3
9
58
119
525
112
0.0
0.0
0.1
0.1
0.2
0.2
4.6
10.3
16.5
19.5
25.2
21.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.4
0.6
-0.2
-0.2
-0.4
-0.2
-0.1
15.7
11.0
25.7
16.7
2.6
237
340
977
2,480
3,887
0.2
0.2
0.3
0.1
0.1
22.0
23.1
25.2
28.8
31.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 5.0
** This table is part of a series of tables showing the distributional effects of moving incrementally from current policy to current law. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Policy to Current Law” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=367
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009
levels—a 45 percent tax rate and a $3.5 million exemption, not indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption,
not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail 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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.2
0.6
1.7
10.4
17.9
69.1
100.0
3
9
58
119
525
112
0.5
0.3
0.7
0.7
0.8
0.7
0.0
0.0
0.0
0.0
0.0
0.0
0.8
4.1
10.9
18.4
65.6
100.0
0.0
0.0
0.1
0.1
0.2
0.2
4.6
10.3
16.5
19.5
25.2
21.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.4
0.6
-0.2
-0.2
-0.4
-0.2
-0.1
15.7
11.0
25.7
16.7
2.6
237
340
977
2,480
3,887
0.8
0.8
1.1
0.5
0.2
0.0
0.0
0.1
-0.1
-0.1
14.2
10.4
16.1
24.9
12.5
0.2
0.2
0.3
0.1
0.1
22.0
23.1
25.2
28.8
31.2
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, 2012 1
4
Tax Units
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
533
2,962
8,560
17,195
70,139
15,841
11,067
25,890
43,664
71,783
210,090
60,327
4.6
10.3
16.4
19.3
25.0
20.8
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.5
14.7
20.2
51.6
100.0
0.8
4.2
10.9
18.4
65.6
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
30,137
45,107
85,929
523,066
2,604,900
108,248
151,441
259,645
1,302,122
5,762,374
21.8
23.0
24.9
28.7
31.1
13.5
9.4
13.4
18.1
8.4
13.4
9.2
12.7
16.3
7.3
14.2
10.4
16.1
25.0
12.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 5.0
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail 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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.2
0.3
0.8
5.2
8.6
84.7
100.0
2
5
30
50
501
112
1.7
0.2
0.4
0.3
0.9
0.7
0.0
0.0
0.0
-0.1
0.1
0.0
0.1
2.9
8.7
17.6
70.6
100.0
0.0
0.0
0.1
0.1
0.2
0.2
1.0
8.5
15.1
18.9
25.1
21.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.3
0.6
0.8
-0.2
-0.2
-0.4
-0.3
-0.1
13.1
11.8
32.5
27.2
4.1
155
278
968
3,356
5,052
0.6
0.7
1.3
0.7
0.2
0.0
0.0
0.1
0.0
-0.1
15.5
11.7
17.4
26.0
12.9
0.1
0.2
0.3
0.2
0.1
22.0
23.3
25.0
28.7
31.0
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
4
Tax Units
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
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
2,216
6,970
14,640
58,698
15,841
10,823
23,991
39,352
62,925
176,850
60,327
1.0
8.5
15.1
18.9
24.9
20.8
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
19.9
55.8
100.0
0.1
2.9
8.7
17.6
70.5
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
25,783
38,695
72,481
450,908
2,274,153
91,875
128,475
221,730
1,133,817
5,086,040
21.9
23.2
24.6
28.5
30.9
14.7
10.5
14.6
19.0
8.7
14.5
10.2
13.9
17.2
7.6
15.5
11.7
17.3
26.0
13.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 5.0
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single Tax Units
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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.3
0.1
0.0
0.0
-0.2
-0.3
-1.2
-0.6
0.3
0.4
5.8
8.8
84.5
100.0
2
4
62
114
1,314
217
0.4
0.2
1.1
1.0
3.4
2.4
0.0
-0.1
-0.2
-0.3
0.6
0.0
1.6
5.1
12.7
20.9
59.6
100.0
0.0
0.0
0.2
0.2
0.9
0.5
7.1
10.7
17.1
21.0
26.5
21.4
0.0
0.0
0.0
0.0
0.0
0.2
0.3
0.7
1.4
1.5
-0.7
-0.9
-1.7
-1.4
-0.3
14.8
12.8
32.4
24.5
2.5
437
803
2,692
10,112
11,890
2.2
2.8
5.4
3.2
0.7
0.0
0.0
0.4
0.1
-0.2
15.7
10.9
14.5
18.5
8.7
0.5
0.7
1.3
1.0
0.2
23.9
25.0
25.6
31.2
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 Adjusted for Family Size, 2012 1
4
Tax Units
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
592
2,132
5,784
11,609
38,892
9,169
7,788
17,838
28,478
44,224
113,086
34,709
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
19,610
28,948
49,724
320,996
1,765,191
64,427
90,083
154,824
739,635
3,477,915
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.1
10.7
16.9
20.8
25.6
20.9
4.7
10.2
15.9
21.3
48.2
100.0
5.5
11.5
16.7
21.3
45.4
100.0
1.6
5.2
12.8
21.2
59.1
100.0
23.3
24.3
24.3
30.3
33.7
14.1
9.3
12.1
12.7
5.5
13.6
8.9
11.6
11.2
4.6
15.7
10.9
14.1
18.3
8.8
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 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Married Tax Units Filing Jointly
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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.8
3.2
1.7
6.0
87.4
100.0
3
9
4
10
115
40
2.4
0.3
0.0
0.1
0.2
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.4
5.5
15.2
77.6
100.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
7.9
13.5
17.8
24.7
21.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.3
0.6
0.0
0.0
-0.1
-0.1
-0.1
3.3
5.9
33.8
44.4
13.0
9
30
213
1,074
3,123
0.0
0.1
0.3
0.2
0.1
0.0
0.0
0.0
0.0
0.0
15.6
12.7
19.5
29.8
14.7
0.0
0.0
0.1
0.1
0.0
21.3
22.8
24.8
28.1
30.4
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, 2012 1
4
Tax Units
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
115
2,616
8,074
16,935
69,618
27,206
14,411
30,789
51,597
78,088
212,224
98,814
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
29,497
43,749
83,600
489,583
2,393,124
108,815
148,341
254,123
1,258,881
5,497,254
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
7.8
13.5
17.8
24.7
21.6
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
5.6
15.3
77.6
100.0
21.3
22.8
24.8
28.0
30.3
15.9
12.0
17.0
23.0
10.5
15.9
11.9
16.3
21.1
9.3
15.7
12.7
19.5
29.8
14.7
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 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Head of Household Tax Units
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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.2
2.0
6.6
18.4
72.4
100.0
0
1
4
18
162
11
0.0
0.0
0.1
0.1
0.4
0.2
0.0
0.0
0.0
0.0
0.1
0.0
-5.4
9.7
27.7
29.7
38.2
100.0
0.0
0.0
0.0
0.0
0.1
0.0
-7.2
6.0
15.3
19.7
24.3
13.8
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.4
0.0
-0.2
-0.2
-0.2
-0.1
10.4
15.9
25.9
20.3
3.8
36
190
416
1,701
3,599
0.1
0.5
0.6
0.4
0.2
0.0
0.0
0.0
0.0
0.0
14.7
5.9
8.0
9.6
4.5
0.0
0.1
0.2
0.1
0.1
22.8
23.3
23.5
28.8
31.1
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
4
Tax Units
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
-966
1,830
7,677
15,107
43,270
5,746
14,455
28,787
42,598
61,774
135,251
36,014
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
25,698
35,894
65,092
408,877
2,154,329
87,064
118,999
213,326
1,014,723
4,796,174
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-7.2
6.0
15.3
19.7
24.2
13.8
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
9.7
27.7
29.7
38.1
100.0
22.8
23.2
23.4
28.7
31.0
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.8
1.6
14.7
5.9
8.0
9.6
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 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Tax Units with Children
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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.2
3.4
17.5
77.0
100.0
0
1
2
11
57
12
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
-1.4
2.3
10.2
20.4
68.4
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-8.9
6.1
15.4
19.4
25.9
20.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.0
0.0
0.0
0.0
0.0
5.9
6.8
33.4
31.0
7.2
8
21
131
508
1,218
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
16.3
11.0
17.1
24.1
11.5
0.0
0.0
0.0
0.0
0.0
22.6
23.9
26.2
29.7
31.3
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
4
Tax Units
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
-1,303
2,102
9,601
19,985
79,141
19,573
16,026
32,570
52,697
83,157
226,921
75,846
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
35,641
53,557
104,577
619,198
3,077,796
121,855
170,988
295,779
1,469,256
6,761,898
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.9
6.1
15.4
19.4
25.9
20.5
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.5
21.9
50.6
100.0
-1.4
2.3
10.2
20.4
68.4
100.0
22.6
23.9
26.1
29.7
31.3
14.8
9.5
13.4
16.7
7.6
14.4
9.1
12.4
14.7
6.5
16.3
11.0
17.0
24.1
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 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0157
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Maintain Current Law Estate Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Elderly Tax Units
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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.7
0.2
-0.1
-0.1
-0.4
-0.4
-1.2
-0.8
0.3
0.7
5.4
8.6
84.7
100.0
9
14
138
238
2,293
498
3.4
1.6
5.9
3.1
3.9
3.8
0.0
0.0
0.1
-0.1
0.0
0.0
0.3
1.7
3.6
10.6
83.7
100.0
0.1
0.1
0.3
0.3
0.9
0.7
2.5
3.8
6.1
11.3
23.9
17.8
0.0
0.0
0.0
0.0
0.0
0.4
0.5
1.0
1.6
2.0
-1.0
-1.1
-1.7
-0.9
-0.3
14.3
12.1
32.5
25.9
3.4
896
1,345
3,543
9,071
12,215
5.5
4.8
6.0
2.3
0.6
0.2
0.1
0.4
-0.7
-0.7
10.2
9.7
21.0
42.8
21.2
0.9
0.9
1.3
0.7
0.2
16.4
19.2
23.2
29.1
31.6
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
4
Tax Units
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
846
2,355
7,727
59,188
13,017
10,637
21,682
38,739
62,511
197,860
62,720
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
16,426
28,074
58,678
397,818
2,049,957
89,018
125,029
209,204
999,143
4,470,134
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
5.7
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
15.6
18.3
21.9
28.5
31.4
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.2
22.6
9.9
10.0
9.6
20.6
43.4
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 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts, patching AMT using 2009 parameters indexed for inflation, and estate tax at 2009 levels—a 45 percent tax rate and a $3.5 million exemption, not
indexed). Policy estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed).
(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.