21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
0.0
0.2
7.3
27.2
43.1
12.5
0.0
0.0
-0.2
-0.6
-0.5
-0.4
0.0
0.1
5.4
29.0
65.6
100.0
0
1
64
408
1,058
239
0.0
0.0
0.1
0.5
0.4
0.3
5.2
12.3
18.3
21.7
28.3
23.5
0.0
0.0
0.0
0.0
0.0
37.9
46.0
59.4
17.3
11.5
-0.7
-0.7
-0.9
0.0
0.0
22.1
16.0
26.4
1.1
0.0
709
1,046
2,134
337
91
0.5
0.5
0.6
0.0
0.0
24.7
25.8
27.7
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: 1.2
Proposal: 19.7
** 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; removal of low- and middleincome tax cuts (eliminate the 10 percent bracket and increase the 25 and
28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination
of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile, 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
Percent
Share of Federal Taxes
Change (%
Points)
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
0.0
0.2
7.3
27.2
43.1
12.5
0.0
0.0
-0.2
-0.6
-0.5
-0.4
0.0
0.1
5.4
29.0
65.6
100.0
0
1
64
408
1,058
239
0.0
0.0
0.7
2.2
1.4
1.4
0.0
-0.1
-0.1
0.1
0.0
0.0
0.8
4.4
10.8
18.3
65.5
100.0
0.0
0.0
0.1
0.5
0.4
0.3
5.2
12.3
18.3
21.7
28.3
23.5
0.0
0.0
0.0
0.0
0.0
37.9
46.0
59.4
17.3
11.5
-0.7
-0.7
-0.9
0.0
0.0
22.1
16.0
26.4
1.1
0.0
709
1,046
2,134
337
91
2.1
2.1
2.3
0.1
0.0
0.1
0.1
0.1
-0.3
-0.2
14.2
10.3
15.8
25.2
12.7
0.5
0.5
0.6
0.0
0.0
24.7
25.8
27.7
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
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 AfterTax Income5
(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
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
602
3,544
9,512
18,911
78,113
17,653
10,998
25,308
42,712
70,066
202,116
58,516
5.2
12.3
18.2
21.3
27.9
23.2
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
4.5
10.9
18.1
65.5
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
33,460
49,571
93,478
595,444
2,978,944
104,925
146,978
252,096
1,229,743
5,388,330
24.2
25.2
27.1
32.6
35.6
13.5
9.4
13.4
18.1
8.4
13.4
9.2
12.7
15.9
7.0
14.1
10.2
15.7
25.5
12.9
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: 1.2
Proposal: 19.7
(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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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 Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.0
10.2
25.1
27.9
12.5
0.0
-0.1
-0.4
-0.7
-0.4
-0.4
0.0
1.4
11.9
32.3
54.3
100.0
0
17
143
405
682
239
0.0
0.6
1.8
2.5
1.1
1.4
0.0
0.0
0.0
0.2
-0.2
0.0
0.3
3.3
8.8
17.5
70.1
100.0
0.0
0.1
0.3
0.5
0.3
0.3
2.1
10.9
17.2
21.1
28.0
23.5
0.0
0.0
0.0
0.0
0.0
22.6
27.8
43.5
19.4
13.5
-0.5
-0.6
-0.7
0.0
0.0
16.0
14.9
22.1
1.5
0.1
399
740
1,394
380
218
1.4
1.8
1.8
0.1
0.0
0.0
0.1
0.1
-0.3
-0.2
15.3
11.5
17.0
26.2
13.2
0.3
0.4
0.5
0.0
0.0
24.4
25.7
27.4
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
1
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
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
233
2,832
7,817
15,985
65,190
17,653
10,702
23,376
38,505
61,581
170,358
58,516
2.1
10.8
16.9
20.6
27.7
23.2
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.2
13.1
20.1
55.4
100.0
0.3
3.3
8.8
17.3
70.3
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
28,259
42,284
79,311
513,245
2,600,041
89,399
124,887
214,901
1,071,480
4,760,151
24.0
25.3
27.0
32.4
35.3
14.7
10.5
14.6
19.0
8.7
14.6
10.2
13.9
16.7
7.4
15.3
11.5
17.0
26.5
13.3
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: 1.2
Proposal: 19.7
(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; removal of low- and middle-income tax cuts (eliminate the 10
percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
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
0.0
0.1
0.3
1.4
7.8
1.4
0.0
0.0
0.0
0.0
-0.1
-0.1
0.0
1.1
2.3
9.7
86.9
100.0
0
1
3
13
146
23
0.0
0.1
0.0
0.1
0.3
0.2
0.0
0.0
0.0
0.0
0.1
0.0
1.5
5.3
12.6
20.5
60.1
100.0
0.0
0.0
0.0
0.0
0.1
0.1
7.3
11.8
18.2
22.1
28.6
23.0
0.0
0.0
0.0
0.0
0.0
3.2
7.2
19.2
19.5
14.1
-0.1
-0.2
-0.3
0.0
0.0
16.7
19.1
45.5
5.6
0.1
53
129
407
251
73
0.3
0.4
0.7
0.1
0.0
0.0
0.0
0.1
0.0
0.0
15.5
10.9
14.6
19.0
9.1
0.1
0.1
0.2
0.0
0.0
25.3
26.8
27.7
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
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
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
613
2,363
6,240
12,330
43,376
10,064
7,768
17,607
28,021
43,503
108,602
33,814
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
21,234
31,774
56,224
366,493
2,000,041
62,803
87,257
148,324
694,138
3,243,065
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.3
11.8
18.2
22.1
28.5
22.9
4.7
10.2
15.9
21.3
48.2
100.0
5.7
11.7
16.8
21.5
44.7
100.0
1.5
5.3
12.6
20.5
60.0
100.0
25.3
26.7
27.5
34.6
38.2
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.4
10.8
4.4
15.5
10.9
14.6
19.1
9.1
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).
(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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
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
0.0
2.2
15.6
37.9
36.5
23.6
0.0
-0.1
-0.5
-0.9
-0.5
-0.5
0.0
0.5
9.2
33.0
57.3
100.0
0
15
246
674
945
500
0.0
0.4
2.6
3.6
1.2
1.6
0.0
0.0
0.1
0.3
-0.3
0.0
0.2
1.7
5.8
15.4
76.8
100.0
0.0
0.1
0.4
0.7
0.3
0.4
2.9
10.8
16.0
20.5
27.8
24.5
0.0
0.0
0.0
0.0
0.0
31.4
36.0
53.3
19.4
14.0
-0.5
-0.7
-0.7
0.0
0.0
16.6
16.1
23.3
1.4
0.1
573
1,016
1,837
425
276
1.8
2.1
2.0
0.1
0.0
0.0
0.1
0.1
-0.5
-0.2
15.5
12.5
19.0
29.8
14.8
0.4
0.5
0.5
0.0
0.0
24.0
25.4
27.4
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
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
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
428
3,598
9,323
18,812
77,326
30,417
14,098
29,806
50,348
76,210
204,516
95,603
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
32,578
47,805
90,769
557,166
2,743,399
105,734
144,286
246,953
1,191,299
5,146,979
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.9
10.8
15.6
19.8
27.4
24.1
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.5
64.9
100.0
0.2
1.7
5.7
15.2
77.1
100.0
23.6
24.9
26.9
31.9
34.8
15.9
12.0
17.0
23.0
10.5
16.0
11.9
16.4
20.6
9.0
15.5
12.4
18.9
30.3
15.1
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).
(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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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
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
0.0
5.4
23.2
53.7
50.7
15.1
0.0
-0.2
-0.7
-1.0
-0.7
-0.5
0.0
7.3
31.0
36.9
24.8
100.0
0
45
278
609
914
186
0.0
1.6
3.2
3.8
2.0
2.8
0.1
-0.2
0.1
0.3
-0.3
0.0
-3.7
12.8
27.5
28.0
35.3
100.0
0.0
0.2
0.6
0.8
0.5
0.5
-5.9
9.3
17.9
21.8
26.5
16.2
0.0
0.0
0.0
0.0
0.0
46.2
60.5
64.0
22.4
11.3
-0.8
-1.1
-0.8
0.0
0.0
12.0
6.4
6.2
0.2
0.0
683
1,265
1,633
317
28
2.5
3.3
2.4
0.1
0.0
0.0
0.0
0.0
-0.3
-0.1
13.4
5.5
7.3
9.2
4.3
0.6
0.8
0.6
0.0
0.0
24.6
25.3
25.3
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
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(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
-789
2,801
8,707
16,174
46,442
6,594
14,279
27,817
41,568
60,707
132,079
35,166
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
27,107
37,853
68,759
460,908
2,450,694
85,656
117,040
209,659
962,691
4,499,810
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.9
9.2
17.3
21.0
26.0
15.8
10.3
22.4
25.0
20.8
21.6
100.0
13.0
24.2
24.5
19.5
19.0
100.0
-3.8
13.0
27.4
27.8
35.6
100.0
24.0
24.4
24.7
32.4
35.3
8.9
3.5
4.7
4.6
2.0
8.0
3.1
4.2
3.7
1.5
13.5
5.4
7.3
9.4
4.4
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).
(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; removal of low- and middle-income tax cuts (eliminate
the 10 percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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 Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
6.0
29.6
70.1
62.6
32.0
0.0
-0.2
-0.8
-1.5
-0.7
-0.8
0.0
1.7
14.7
38.9
44.7
100.0
0
49
424
1,176
1,592
603
0.0
1.4
3.8
5.3
1.8
2.7
0.0
0.0
0.1
0.5
-0.6
0.0
-0.9
3.3
10.6
20.6
66.3
100.0
0.0
0.1
0.7
1.1
0.5
0.6
-6.6
10.2
18.6
22.6
29.0
23.8
0.0
0.0
0.0
0.0
0.0
62.0
73.2
62.6
13.6
8.9
-0.9
-1.3
-0.9
0.0
0.0
16.6
14.8
13.0
0.3
0.0
1,118
2,213
2,462
241
24
2.9
3.8
2.2
0.0
0.0
0.0
0.1
-0.1
-0.6
-0.3
15.8
10.6
16.1
23.7
11.4
0.7
1.0
0.6
0.0
0.0
25.4
26.7
28.7
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
1
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
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
-967
3,486
11,143
22,180
87,211
22,061
15,690
31,186
51,155
80,961
218,852
73,359
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
38,905
57,644
112,227
706,577
3,520,707
118,591
166,902
288,129
1,381,877
6,318,987
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-6.6
10.1
17.9
21.5
28.5
23.1
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.0
14.5
22.0
50.5
100.0
-0.9
3.3
10.5
20.0
66.9
100.0
24.7
25.7
28.0
33.8
35.8
14.8
9.5
13.4
16.7
7.6
14.5
9.2
12.5
14.3
6.3
15.8
10.5
16.2
24.4
11.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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; removal of low- and middle-income tax cuts (eliminate the 10
percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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 T10-0173
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Eliminate AMT Patch
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 Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
2.8
14.8
3.4
0.0
0.0
0.0
-0.1
-0.2
-0.1
0.0
0.1
1.9
7.8
90.2
100.0
0
0
7
32
369
75
0.0
0.0
0.3
0.4
0.5
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.8
3.7
10.7
83.6
100.0
0.0
0.0
0.0
0.1
0.1
0.1
2.6
4.4
6.9
12.8
26.9
20.1
0.0
0.0
0.0
0.0
0.0
4.5
9.6
34.0
27.2
17.2
-0.1
-0.2
-0.5
-0.1
0.0
7.9
11.6
60.1
10.6
0.2
75
195
992
559
128
0.4
0.6
1.4
0.1
0.0
0.0
0.0
0.2
-0.2
-0.1
10.3
9.8
20.9
42.6
21.4
0.1
0.1
0.4
0.0
0.0
18.7
21.7
26.0
32.7
35.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
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
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
283
992
2,833
8,977
68,709
15,130
10,616
21,536
38,261
61,262
188,339
60,607
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
19,637
33,060
68,638
455,479
2,339,141
85,807
120,043
199,243
941,482
4,180,950
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.6
4.4
6.9
12.8
26.7
20.0
2.4
8.0
10.6
16.7
62.4
100.0
2.9
9.6
12.4
18.2
57.2
100.0
0.3
1.8
3.7
10.7
83.5
100.0
18.6
21.6
25.6
32.6
35.9
11.1
9.0
16.1
26.2
12.0
11.3
8.8
15.0
22.1
9.6
10.3
9.8
20.7
42.8
21.5
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; removal of low- and middle-income tax cuts (eliminate the 10
percent bracket and increase the 25 and 28 percent tax rates to 28 and 31 percent; restore 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; and repeal 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)). Policy is elimination of the AMT patch.
(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.