21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent Tax
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
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
0.0
0.0
0.0
0.0
0.0
0.0
18.1
63.6
89.8
97.3
94.1
67.2
-0.3
-1.0
-1.2
-1.4
-1.2
-1.2
1.3
8.3
15.8
23.6
51.1
100.0
36
257
534
956
2,367
686
0.3
0.9
1.0
1.1
0.8
0.9
5.2
12.3
18.2
21.3
27.9
23.2
0.0
0.0
0.0
0.0
0.0
97.9
96.1
85.6
80.7
81.3
-1.6
-1.8
-1.3
-0.3
-0.1
18.5
14.0
14.2
4.3
0.5
1,706
2,638
3,303
3,916
4,303
1.2
1.3
1.0
0.2
0.1
24.2
25.2
27.1
32.6
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 2.9
Proposal: 1.2
** 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; 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);
restoration of marriage penalties by setting the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to 1.67 times those for singles and
making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28 percent tax
rates increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2009 dollars): 20% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent Tax
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
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
0.0
0.0
0.0
0.0
0.0
0.0
18.1
63.6
89.8
97.3
94.1
67.2
-0.3
-1.0
-1.2
-1.4
-1.2
-1.2
1.3
8.3
15.8
23.6
51.1
100.0
36
257
534
956
2,367
686
6.4
7.8
5.9
5.3
3.1
4.1
0.0
0.2
0.2
0.2
-0.6
0.0
0.8
4.5
10.9
18.1
65.5
100.0
0.3
0.9
1.0
1.1
0.8
0.9
5.2
12.3
18.2
21.3
27.9
23.2
0.0
0.0
0.0
0.0
0.0
97.9
96.1
85.6
80.7
81.3
-1.6
-1.8
-1.3
-0.3
-0.1
18.5
14.0
14.2
4.3
0.5
1,706
2,638
3,303
3,916
4,303
5.4
5.6
3.7
0.7
0.1
0.2
0.2
-0.1
-0.9
-0.5
14.1
10.2
15.7
25.5
12.9
1.2
1.3
1.0
0.2
0.1
24.2
25.2
27.1
32.6
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
566
3,288
8,978
17,955
75,746
16,966
11,034
25,564
43,245
71,022
204,483
59,202
4.9
11.4
17.2
20.2
27.0
22.3
3.7
8.4
13.9
19.8
54.5
100.0
4.6
9.6
14.8
20.3
51.1
100.0
0.8
4.3
10.7
17.9
66.1
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
31,753
46,932
90,176
591,541
2,974,659
106,632
149,616
255,399
1,233,647
5,392,615
23.0
23.9
26.1
32.4
35.6
13.5
9.4
13.4
18.1
8.4
13.4
9.2
12.8
15.8
6.9
13.9
10.1
15.7
26.4
13.4
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: 2.9
Proposal: 1.2
(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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent tax brackets for
couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28 percent tax rates
increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2009 dollars): 20% $19,356, 40%
$37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table
4
Percent of Tax Units
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
5
Income
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
8.0
57.6
86.0
97.4
94.9
67.2
-0.1
-1.0
-1.3
-1.2
-1.2
-1.2
0.2
6.7
14.2
21.4
57.5
100.0
6
225
489
771
2,076
686
2.6
8.6
6.7
5.1
3.3
4.1
0.0
0.1
0.2
0.2
-0.5
0.0
0.3
3.3
8.8
17.3
70.3
100.0
0.1
0.9
1.1
1.0
0.9
0.9
2.1
10.8
16.9
20.6
27.7
23.2
0.0
0.0
0.0
0.0
0.0
97.9
96.3
89.6
78.1
78.7
-1.6
-1.8
-1.4
-0.3
-0.1
20.0
15.7
17.2
4.8
0.5
1,435
2,246
3,118
3,579
4,065
5.4
5.6
4.1
0.7
0.2
0.2
0.2
0.0
-0.9
-0.5
15.3
11.5
17.0
26.5
13.3
1.2
1.3
1.1
0.2
0.1
24.0
25.3
27.0
32.4
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
4
Tax Units
2,3
Cash Income Percentile
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 After5
Tax Income
(Dollars)
Average
Federal Tax
6
Rate
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
227
2,607
7,328
15,214
63,114
16,966
10,708
23,600
38,994
62,352
172,433
59,202
2.1
10.0
15.8
19.6
26.8
22.3
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.1
20.1
55.4
100.0
0.3
3.2
8.6
17.1
70.8
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
26,825
40,037
76,193
509,679
2,596,003
90,833
127,133
218,019
1,075,047
4,764,189
22.8
24.0
25.9
32.2
35.3
14.7
10.5
14.6
19.0
8.7
14.7
10.3
13.9
16.6
7.3
15.1
11.3
17.0
27.4
13.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 2.9
Proposal: 1.2
(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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent
brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28
percent tax rates increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
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
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
12.9
57.3
87.7
97.7
95.6
63.5
-0.1
-1.1
-1.3
-1.2
-1.4
-1.2
0.6
10.5
17.4
21.5
50.1
100.0
10
195
358
537
1,505
418
1.6
9.0
6.1
4.6
3.6
4.3
0.0
0.2
0.2
0.0
-0.4
0.0
1.5
5.3
12.6
20.5
60.0
100.0
0.1
1.0
1.0
1.0
1.0
1.0
7.3
11.8
18.2
22.1
28.5
22.9
0.0
0.0
0.0
0.0
0.0
97.9
96.9
91.8
74.2
75.0
-1.6
-1.9
-1.6
-0.4
-0.1
18.2
13.6
14.8
3.5
0.4
1,038
1,649
2,379
2,765
3,398
5.1
5.5
4.4
0.8
0.2
0.1
0.1
0.0
-0.7
-0.4
15.5
10.9
14.6
19.1
9.1
1.2
1.4
1.2
0.3
0.1
25.3
26.7
27.5
34.6
38.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
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
603
2,168
5,882
11,793
41,872
9,646
7,777
17,802
28,379
44,040
110,107
34,232
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
20,196
30,126
53,845
363,728
1,996,644
63,841
88,906
150,703
696,903
3,246,463
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
7.2
10.9
17.2
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
5.1
12.4
20.5
60.4
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
14.5
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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent tax brackets for
couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28 percent tax rates
increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
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
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
1.7
54.6
80.7
97.5
95.2
76.0
0.0
-0.8
-1.2
-1.3
-1.2
-1.2
0.0
3.2
10.4
21.0
65.4
100.0
1
245
627
967
2,436
1,129
0.3
7.3
7.2
5.4
3.3
3.9
0.0
0.1
0.2
0.2
-0.5
0.0
0.2
1.7
5.7
15.2
77.1
100.0
0.0
0.7
1.1
1.0
0.9
0.9
2.9
10.8
15.6
19.8
27.4
24.1
0.0
0.0
0.0
0.0
0.0
98.4
96.9
89.7
80.1
80.1
-1.6
-1.8
-1.4
-0.3
-0.1
21.6
18.1
20.0
5.8
0.7
1,690
2,592
3,552
3,929
4,385
5.5
5.7
4.1
0.7
0.2
0.2
0.2
0.0
-1.0
-0.6
15.5
12.4
18.9
30.3
15.1
1.2
1.4
1.1
0.2
0.1
23.6
24.9
26.9
31.9
34.8
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
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
426
3,354
8,695
17,845
74,891
29,288
14,100
30,051
50,976
77,177
206,952
96,732
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
30,888
45,213
87,218
553,237
2,739,014
107,424
146,877
250,505
1,195,228
5,151,364
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.9
10.0
14.6
18.8
26.6
23.2
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.5
9.9
19.6
64.9
100.0
0.2
1.7
5.6
14.9
77.6
100.0
22.3
23.5
25.8
31.6
34.7
15.9
12.0
17.0
23.0
10.5
16.0
12.0
16.4
20.5
8.9
15.2
12.2
18.9
31.3
15.6
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 0509-5).
(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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent tax brackets for
couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28 percent tax rates
increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent Tax
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
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
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
1.5
59.9
92.4
96.8
87.6
53.3
0.0
-0.9
-1.3
-1.1
-1.0
-1.0
0.1
23.0
33.5
23.2
20.2
100.0
1
256
547
698
1,356
340
-0.1
10.1
6.7
4.5
3.0
5.4
0.2
0.6
0.3
-0.2
-0.8
0.0
-3.8
13.0
27.4
27.8
35.6
100.0
0.0
0.8
1.1
0.9
0.8
0.8
-5.9
9.2
17.3
21.0
26.0
15.8
0.0
0.0
0.0
0.0
0.0
93.9
81.9
69.3
69.7
78.0
-1.4
-1.2
-0.8
-0.3
-0.1
11.6
3.8
3.5
1.3
0.1
1,197
1,380
1,706
3,244
3,830
4.6
3.8
2.5
0.7
0.2
-0.1
-0.1
-0.2
-0.4
-0.2
13.5
5.4
7.3
9.4
4.4
1.1
0.9
0.6
0.2
0.1
24.0
24.4
24.7
32.4
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
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
-790
2,544
8,160
15,476
45,086
6,255
14,279
28,073
42,115
61,405
133,435
35,505
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
25,909
36,474
67,053
457,664
2,446,863
86,854
118,419
211,365
965,936
4,503,640
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-5.9
8.3
16.2
20.1
25.3
15.0
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.2
24.6
19.6
19.0
100.0
-4.0
12.4
27.1
28.0
36.5
100.0
23.0
23.6
24.1
32.2
35.2
8.9
3.5
4.7
4.6
2.0
8.0
3.2
4.2
3.7
1.5
13.6
5.5
7.5
9.9
4.6
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 0509-5).
(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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent tax brackets for
couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28 percent tax rates
increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent 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
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
5
Income
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.9
60.8
93.5
98.0
93.3
67.8
0.0
-0.9
-1.3
-1.2
-1.2
-1.1
0.0
7.3
17.0
23.9
51.9
100.0
1
289
682
1,005
2,572
839
-0.1
9.0
6.5
4.8
3.0
4.0
0.0
0.2
0.3
0.2
-0.6
0.0
-0.9
3.3
10.5
20.0
66.9
100.0
0.0
0.8
1.1
1.0
0.8
0.9
-6.6
10.1
17.9
21.5
28.5
23.1
0.0
0.0
0.0
0.0
0.0
97.6
93.1
83.4
85.9
84.9
-1.6
-1.7
-1.2
-0.3
-0.1
20.7
13.7
13.4
4.1
0.4
1,940
2,865
3,525
4,468
4,617
5.3
5.2
3.2
0.6
0.1
0.2
0.1
-0.1
-0.8
-0.5
15.8
10.5
16.2
24.4
11.7
1.2
1.3
0.9
0.2
0.1
24.7
25.7
28.0
33.8
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
4
Tax Units
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(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
-968
3,197
10,461
21,175
84,639
21,222
15,691
31,475
51,837
81,967
221,424
74,197
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
36,964
54,779
108,702
702,117
3,516,102
120,531
169,767
291,654
1,386,338
6,323,592
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.6
9.2
16.8
20.5
27.7
22.2
3.2
7.7
13.6
21.6
54.3
100.0
4.4
8.9
14.6
22.0
50.5
100.0
-0.9
3.2
10.3
19.9
67.5
100.0
23.5
24.4
27.2
33.6
35.7
14.8
9.5
13.4
16.7
7.6
14.5
9.2
12.5
14.2
6.3
15.6
10.4
16.3
25.2
12.1
Average
Federal Tax
6
Rate
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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent
brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28
percent tax rates increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0171
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate 10 Percent Bracket and Raise 25 and 28 Percent 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
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
5
Income
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
2.9
28.7
55.5
94.2
93.0
53.1
0.0
-0.4
-0.6
-1.1
-1.0
-0.9
0.1
4.5
8.7
22.6
64.2
100.0
2
90
240
680
1,886
541
0.6
10.0
9.3
8.2
2.8
3.7
0.0
0.1
0.2
0.4
-0.7
0.0
0.3
1.8
3.7
10.7
83.5
100.0
0.0
0.4
0.6
1.0
0.7
0.7
2.6
4.4
6.9
12.8
26.7
20.0
0.0
0.0
0.0
0.0
0.0
96.6
97.0
90.7
67.4
73.2
-1.4
-1.6
-1.4
-0.3
-0.1
17.4
16.0
23.4
7.4
1.0
1,186
1,935
2,771
2,804
3,708
6.4
6.2
4.2
0.6
0.2
0.3
0.2
0.1
-1.3
-0.8
10.3
9.8
20.7
42.8
21.5
1.1
1.3
1.0
0.2
0.1
18.6
21.6
25.6
32.6
35.9
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
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(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
281
902
2,593
8,296
66,824
14,589
10,618
21,626
38,501
61,942
190,224
61,148
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
18,451
31,125
65,867
452,688
2,335,469
86,993
121,978
202,015
944,273
4,184,622
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.6
4.0
6.3
11.8
26.0
19.3
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
1.7
3.5
10.2
84.2
100.0
17.5
20.3
24.6
32.4
35.8
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.1
21.9
9.5
10.1
9.5
20.6
44.1
22.2
Average
Federal Tax
6
Rate
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; 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); restoration of marriage penalties by setting the standard deduction and 10 and 15 percent
brackets for couples filing jointly to 1.67 times those for singles and making the EITC phaseout threshold for couples filing jointly the same as that for singles. Policy is elimination of the 10 percent bracket and the 25 and 28
percent tax rates increased to 28 and 31 percent.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.