21-Jul-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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
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
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
5.8
24.3
28.5
35.2
22.0
21.8
-0.2
-1.0
-0.6
-0.4
-0.1
-0.3
3.3
29.9
27.4
26.3
12.7
100.0
25
249
250
287
159
185
0.2
0.9
0.5
0.3
0.1
0.2
4.9
11.2
17.0
19.9
26.7
22.0
0.0
0.0
0.0
0.0
0.0
35.9
11.6
4.5
2.9
1.3
-0.3
0.0
0.0
0.0
0.0
11.4
1.0
0.2
0.0
0.0
283
51
15
9
4
0.2
0.0
0.0
0.0
0.0
22.3
23.4
25.9
32.4
35.5
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: 3.7
Proposal: 3.7
** 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 and patching AMT using 2009 parameters indexed for inflation) plus estate tax at
current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal
exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10 percent for tax units in 15 percent
bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions
of the student loan interest deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail Table
Percent of Tax Units 4
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
0.0
0.0
0.0
0.0
0.0
0.0
5.8
24.3
28.5
35.2
22.0
21.8
-0.2
-1.0
-0.6
-0.4
-0.1
-0.3
3.3
29.9
27.4
26.3
12.7
100.0
25
249
250
287
159
185
4.7
8.3
2.9
1.7
0.2
1.1
0.0
0.3
0.2
0.1
-0.6
0.0
0.8
4.3
10.8
17.9
66.1
100.0
0.2
0.9
0.5
0.3
0.1
0.2
4.9
11.2
17.0
19.9
26.7
22.0
0.0
0.0
0.0
0.0
0.0
35.9
11.6
4.5
2.9
1.3
-0.3
0.0
0.0
0.0
0.0
11.4
1.0
0.2
0.0
0.0
283
51
15
9
4
0.9
0.1
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.2
13.7
10.0
15.8
26.6
13.5
0.2
0.0
0.0
0.0
0.0
22.3
23.4
25.9
32.4
35.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
537
2,982
8,651
17,417
74,770
16,589
11,063
25,871
43,572
71,561
205,459
59,580
4.6
10.3
16.6
19.6
26.7
21.8
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.8
20.3
51.1
100.0
0.8
4.0
10.6
17.8
66.7
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
30,601
45,977
89,576
590,725
2,973,779
107,784
150,571
255,998
1,234,463
5,393,495
22.1
23.4
25.9
32.4
35.5
13.5
9.4
13.4
18.1
8.4
13.5
9.2
12.7
15.7
6.9
13.7
10.1
16.0
26.9
13.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.7
Proposal: 3.7
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
12.2
28.9
28.2
29.5
11.5
21.8
-0.9
-1.3
-0.6
-0.4
0.0
-0.3
10.1
34.8
27.2
23.2
4.5
100.0
92
313
253
225
43
185
80.6
14.1
3.6
1.5
0.1
1.1
0.1
0.4
0.2
0.1
-0.7
0.0
0.3
3.1
8.6
17.0
70.9
100.0
0.8
1.2
0.6
0.3
0.0
0.2
1.9
9.7
15.7
19.3
26.5
22.0
0.0
0.0
0.0
0.0
0.0
18.5
6.5
2.5
1.8
0.8
-0.1
0.0
0.0
0.0
0.0
3.9
0.4
0.2
0.0
0.0
76
14
8
4
2
0.3
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.3
-0.2
14.9
11.3
17.0
27.7
14.0
0.1
0.0
0.0
0.0
0.0
22.3
23.6
25.7
32.1
35.3
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
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
114
2,226
7,022
14,760
62,438
16,589
10,821
23,982
39,300
62,806
173,109
59,580
1.0
8.5
15.2
19.0
26.5
21.8
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.3
13.1
20.1
55.3
100.0
0.1
2.8
8.4
17.0
71.6
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
26,101
39,356
75,645
509,004
2,595,249
91,557
127,814
218,567
1,075,721
4,764,944
22.2
23.5
25.7
32.1
35.3
14.7
10.5
14.6
19.0
8.7
14.7
10.3
13.9
16.5
7.2
15.0
11.4
17.2
28.0
14.2
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: 3.7
Proposal: 3.7
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10
percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single Tax Units
Percent of Tax Units 4
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
1.7
3.2
1.7
6.2
3.8
3.1
-0.1
-0.1
0.0
0.0
0.0
0.0
16.5
46.6
18.0
14.4
4.4
100.0
8
26
11
11
4
12
1.4
1.2
0.2
0.1
0.0
0.1
0.0
0.1
0.0
0.0
-0.1
0.0
1.5
5.1
12.4
20.5
60.4
100.0
0.1
0.1
0.0
0.0
0.0
0.0
7.2
10.9
17.2
21.1
27.6
22.0
0.0
0.0
0.0
0.0
0.0
6.9
0.6
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.2
0.2
0.0
0.0
0.0
7
1
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.4
10.8
14.5
19.8
9.5
0.0
0.0
0.0
0.0
0.0
24.0
25.3
26.3
34.3
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, 2012
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
595
2,143
5,871
11,782
41,868
9,633
7,785
17,828
28,390
44,051
110,111
34,244
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
20,189
30,125
53,845
363,728
1,996,644
63,848
88,907
150,703
696,903
3,246,463
1
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
17.1
21.1
27.6
22.0
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.7
16.8
21.5
44.8
100.0
1.5
5.0
12.4
20.5
60.5
100.0
24.0
25.3
26.3
34.3
38.1
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.5
10.7
4.4
15.4
10.8
14.6
19.8
9.5
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 and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units 4
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
20.8
37.5
44.7
44.0
15.7
31.7
-1.5
-1.6
-0.9
-0.5
0.0
-0.3
7.8
24.0
29.2
31.8
6.7
100.0
210
479
455
377
65
291
178.6
18.2
5.6
2.2
0.1
1.0
0.1
0.2
0.2
0.2
-0.7
0.0
0.1
1.6
5.6
14.8
77.8
100.0
1.5
1.4
0.8
0.4
0.0
0.2
2.3
9.3
14.3
18.3
26.2
22.9
0.0
0.0
0.0
0.0
0.0
26.0
9.5
3.4
2.3
1.0
-0.1
0.0
0.0
0.0
0.0
5.9
0.5
0.2
0.0
0.0
120
20
10
6
3
0.4
0.1
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.3
-0.2
14.9
12.1
19.0
31.7
15.9
0.1
0.0
0.0
0.0
0.0
21.6
23.0
25.6
31.6
34.7
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, 2012
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
118
2,631
8,102
17,030
73,821
28,513
14,408
30,774
51,569
77,992
208,021
97,507
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
29,689
44,162
86,390
552,293
2,737,991
108,623
147,928
251,333
1,196,171
5,152,387
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
7.9
13.6
17.9
26.2
22.6
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.6
64.7
100.0
0.0
1.4
5.3
14.6
78.5
100.0
21.5
23.0
25.6
31.6
34.7
15.9
12.0
17.0
23.0
10.5
16.1
12.0
16.3
20.3
8.8
15.0
12.2
19.2
32.1
16.0
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 and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Head of Household Tax Units
Percent of Tax Units 4
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
27.8
71.8
64.4
51.3
12.9
50.7
-1.2
-2.5
-1.1
-0.5
0.0
-1.2
13.7
53.0
23.9
8.8
0.6
100.0
176
714
473
319
47
411
-18.2
39.0
6.2
2.1
0.1
7.0
1.3
2.9
-0.2
-1.4
-2.5
0.0
-4.0
12.4
27.1
28.0
36.5
100.0
1.3
2.3
0.9
0.4
0.0
1.0
-5.9
8.3
16.2
20.1
25.3
15.0
0.0
0.0
0.0
0.0
0.0
15.8
7.1
8.9
4.6
3.9
-0.1
0.0
0.0
0.0
0.0
0.5
0.0
0.1
0.0
0.0
61
13
37
8
7
0.2
0.0
0.1
0.0
0.0
-0.9
-0.4
-0.5
-0.7
-0.3
13.6
5.5
7.5
9.9
4.6
0.1
0.0
0.0
0.0
0.0
23.0
23.6
24.1
32.2
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
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
-966
1,831
7,687
15,156
45,038
5,844
14,455
28,786
42,588
61,725
133,483
35,916
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
25,848
36,461
67,017
457,656
2,446,857
86,915
118,432
211,401
965,944
4,503,646
1
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
25.2
14.0
10.3
22.4
25.0
20.8
21.6
100.0
12.9
24.5
24.6
19.4
18.8
100.0
-5.3
9.6
27.3
29.3
39.0
100.0
22.9
23.5
24.1
32.2
35.2
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.1
3.6
1.5
14.5
5.9
8.1
10.5
5.0
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 and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table - Tax Units with Children
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
35.4
84.3
83.1
80.3
28.3
63.3
-1.7
-2.8
-1.4
-0.8
-0.1
-0.8
10.0
34.3
27.6
23.7
4.1
100.0
276
923
751
673
137
567
-21.2
43.9
7.8
3.4
0.2
2.8
0.3
0.9
0.5
0.1
-1.8
0.0
-1.0
3.1
10.3
19.8
67.8
100.0
1.9
2.7
1.2
0.7
0.0
0.6
-7.0
8.7
16.7
20.1
27.4
21.9
0.0
0.0
0.0
0.0
0.0
43.9
13.3
8.8
5.6
3.2
-0.2
0.0
0.0
0.0
0.0
3.6
0.3
0.2
0.0
0.0
230
36
29
16
9
0.6
0.1
0.0
0.0
0.0
-0.3
-0.3
-0.5
-0.7
-0.3
15.4
10.4
16.5
25.5
12.3
0.2
0.0
0.0
0.0
0.0
22.9
24.1
27.0
33.6
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
10,133
10,359
10,251
9,800
8,315
49,155
20.6
21.1
20.9
19.9
16.9
100.0
14,723
34,672
62,298
103,142
306,063
95,419
-1,303
2,104
9,619
20,050
83,667
20,356
16,026
32,568
52,679
83,091
222,396
75,063
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
35,785
53,964
108,113
701,144
3,515,082
121,711
170,582
292,243
1,387,310
6,324,612
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-8.9
6.1
15.4
19.4
27.3
21.3
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.6
22.1
50.1
100.0
-1.3
2.2
9.9
19.6
69.5
100.0
22.7
24.0
27.0
33.6
35.7
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.4
14.1
6.2
15.7
10.7
16.9
26.2
12.7
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).
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 and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10
percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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 T10-0167
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Repeal Expansions of EITC, Child Credit, Child and Dependent Care Tax Credit, and Tuition Deduction
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table - Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.9
0.6
2.5
1.7
0.8
1.3
-0.1
0.0
-0.1
0.0
0.0
0.0
11.7
19.2
43.8
19.8
5.3
100.0
6
6
18
9
2
8
2.1
0.7
0.7
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.6
3.5
10.2
84.4
100.0
0.1
0.0
0.0
0.0
0.0
0.0
2.5
3.9
6.2
11.6
25.8
19.1
0.0
0.0
0.0
0.0
0.0
1.4
0.7
0.1
0.2
0.1
0.0
0.0
0.0
0.0
0.0
4.0
0.9
0.3
0.1
0.0
4
2
1
1
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
9.8
9.4
20.6
44.5
22.5
0.0
0.0
0.0
0.0
0.0
16.9
19.9
24.4
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 Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
5,016
8,213
5,981
5,495
5,617
30,543
16.4
26.9
19.6
18.0
18.4
100.0
10,899
22,528
41,094
70,238
257,048
75,737
271
871
2,534
8,133
66,183
14,421
10,628
21,657
38,560
62,105
190,865
61,317
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
17,813
30,408
65,257
452,162
2,334,771
87,631
122,695
202,624
944,799
4,185,320
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.5
3.9
6.2
11.6
25.8
19.0
2.4
8.0
10.6
16.7
62.4
100.0
2.9
9.5
12.3
18.2
57.2
100.0
0.3
1.6
3.4
10.2
84.4
100.0
16.9
19.9
24.4
32.4
35.8
11.1
9.0
16.1
26.2
12.0
11.4
8.9
15.1
21.9
9.5
9.8
9.4
20.7
44.5
22.5
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: 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 and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10
percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer; taxation of all dividends as ordinary income. Policy is repeal of expansions of the student loan interest
deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC).
(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.