16‐Mar‐11
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 T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Summary Table
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
11.9
49.5
74.3
86.8
91.4
94.4
94.2
89.4
78.6
94.9
90.9
73.6
With Tax Increase
0.0
1.5
0.7
0.7
0.3
0.2
0.5
0.2
0.9
2.6
7.6
0.6
Percent Change in After‐Tax Income 4
Share of Total Federal Tax Change
Average Federal Tax Change ($)
0.6
4.4
8.1
8.1
7.0
15.0
12.1
21.8
8.3
5.7
8.7
100.0
‐61
‐283
‐598
‐781
‐853
‐1,041
‐1,323
‐1,621
‐2,064
‐7,828
‐23,005
‐992
1.1
1.9
2.6
2.5
2.2
2.0
1.9
1.5
1.0
1.6
1.1
1.7
Average Federal Tax Rate
Change (% Points)
‐1.1
‐1.8
‐2.3
‐2.1
‐1.8
‐1.6
‐1.5
‐1.1
‐0.7
‐1.1
‐0.7
‐1.3
5
Under the Proposal
4.5
3.4
8.4
12.7
15.9
18.2
20.5
24.0
27.3
28.9
35.3
23.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
Number of AMT Taxpayers (millions). Baseline: 21.2 Proposal: 36.1
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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. 16‐Mar‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax Increase
11.9
49.5
74.3
86.8
91.4
94.4
94.2
89.4
78.6
94.9
90.9
73.6
0.0
1.5
0.7
0.7
0.3
0.2
0.5
0.2
0.9
2.6
7.6
0.6
Percent Change in After‐Tax Income 4
1.1
1.9
2.6
2.5
2.2
2.0
1.9
1.5
1.0
1.6
1.1
1.7
Share of Total Federal Tax Change
0.6
4.4
8.1
8.1
7.0
15.0
12.1
21.8
8.3
5.7
8.7
100.0
Average Federal Tax Change
Dollars
Percent
‐61
‐283
‐598
‐781
‐853
‐1,041
‐1,323
‐1,621
‐2,064
‐7,828
‐23,005
‐992
‐19.4
‐34.9
‐21.5
‐14.4
‐10.2
‐8.1
‐6.6
‐4.5
‐2.5
‐3.7
‐2.0
‐5.1
Share of Federal Taxes
Change (% Points)
0.0
‐0.2
‐0.3
‐0.3
‐0.2
‐0.3
‐0.2
0.2
0.5
0.1
0.7
0.0
Under the Proposal
0.1
0.5
1.6
2.6
3.3
9.2
9.3
25.0
17.6
8.1
22.6
100.0
Average Federal Tax Rate5
Change (% Points)
‐1.1
‐1.8
‐2.3
‐2.1
‐1.8
‐1.6
‐1.5
‐1.1
‐0.7
‐1.1
‐0.7
‐1.3
Under the Proposal
4.5
3.4
8.4
12.7
15.9
18.2
20.5
24.0
27.3
28.9
35.3
23.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Number (thousands)
16,372
24,763
21,537
16,514
13,080
22,835
14,507
21,341
6,329
1,147
598
159,683
Average Income (Dollars)
Percent of Total
10.3
15.5
13.5
10.3
8.2
14.3
9.1
13.4
4.0
0.7
0.4
100.0
5,709
15,706
26,118
36,581
47,115
64,797
91,187
142,857
299,437
714,015
3,141,857
79,379
Average Federal Tax Burden (Dollars)
317
812
2,784
5,432
8,330
12,832
20,027
35,909
83,727
214,206
1,131,324
19,349
Average After‐
Tax Income 4 (Dollars)
5,392
14,894
23,334
31,150
38,785
51,965
71,160
106,948
215,710
499,809
2,010,533
60,030
Average Federal Tax Rate 5
5.6
5.2
10.7
14.9
17.7
19.8
22.0
25.1
28.0
30.0
36.0
24.4
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.7
3.1
4.4
4.8
4.9
11.7
10.4
24.1
15.0
6.5
14.8
100.0
0.9
3.9
5.2
5.4
5.3
12.4
10.8
23.8
14.2
6.0
12.5
100.0
0.2
0.7
1.9
2.9
3.5
9.5
9.4
24.8
17.2
8.0
21.9
100.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
Number of AMT Taxpayers (millions). Baseline: 21.2 Proposal: 36.1
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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. 16‐Mar‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table ‐ Single Tax Units
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax Increase
3.7
48.3
72.5
90.4
96.8
96.6
95.2
92.7
91.0
96.2
89.9
65.1
0.1
2.2
0.3
0.4
0.2
0.1
0.0
0.2
0.6
1.7
9.1
0.7
Percent Change in After‐Tax Income 4
0.3
1.0
1.5
1.4
1.3
1.6
2.1
2.2
1.8
1.8
1.3
1.6
Share of Total Federal Tax Change
0.5
5.5
10.0
8.5
7.5
18.1
12.9
20.5
8.2
3.2
5.1
100.0
Average Federal Tax Change
Dollars
Percent
‐16
‐139
‐332
‐421
‐481
‐772
‐1,352
‐2,196
‐3,822
‐8,258
‐23,454
‐550
‐3.3
‐10.1
‐9.0
‐6.3
‐4.9
‐5.2
‐5.6
‐5.7
‐4.1
‐3.4
‐2.0
‐5.1
Share of Federal Taxes
Change (% Points)
0.0
‐0.2
‐0.2
‐0.1
0.0
0.0
‐0.1
‐0.1
0.1
0.1
0.4
0.0
Under the Proposal
0.8
2.6
5.5
6.8
7.8
17.8
11.6
18.2
10.3
4.9
13.6
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.3
‐0.9
‐1.3
‐1.2
‐1.0
‐1.2
‐1.5
‐1.6
‐1.3
‐1.2
‐0.8
‐1.2
Under the Proposal
8.3
7.9
13.0
17.1
19.9
22.1
25.2
26.0
29.1
33.1
39.0
22.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Average Income (Dollars)
Number (thousands)
Percent of Total
11,717
15,430
11,682
7,821
6,046
9,109
3,700
3,613
837
151
84
70,516
16.6
21.9
16.6
11.1
8.6
12.9
5.3
5.1
1.2
0.2
0.1
100.0
5,695
15,557
26,016
36,553
47,054
63,845
90,036
139,747
304,381
705,144
2,997,275
45,439
Average Federal Tax Burden (Dollars)
486
1,372
3,714
6,673
9,822
14,884
24,001
38,587
92,411
241,693
1,191,549
10,784
Average After‐
Tax Income 4 (Dollars)
5,209
14,185
22,302
29,880
37,232
48,961
66,035
101,159
211,970
463,451
1,805,727
34,655
Average Federal Tax Rate 5
8.5
8.8
14.3
18.3
20.9
23.3
26.7
27.6
30.4
34.3
39.8
23.7
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.1
7.5
9.5
8.9
8.9
18.2
10.4
15.8
8.0
3.3
7.9
100.0
2.5
9.0
10.7
9.6
9.2
18.3
10.0
15.0
7.3
2.9
6.2
100.0
0.8
2.8
5.7
6.9
7.8
17.8
11.7
18.3
10.2
4.8
13.2
100.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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. 16‐Mar‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table ‐ Married Tax Units Filing Jointly
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax Increase
11.0
33.6
62.1
72.9
80.1
93.2
95.6
90.4
77.0
94.7
91.4
79.8
0.0
0.2
1.7
1.4
0.5
0.4
0.7
0.2
1.0
2.7
7.2
0.7
Percent Change in After‐Tax Income 4
1.4
2.1
3.3
3.5
3.0
2.4
1.9
1.4
0.8
1.6
1.1
1.6
Share of Total Federal Tax Change
0.1
1.4
4.1
5.3
5.3
13.2
13.4
27.4
9.9
7.9
11.9
100.0
Average Federal Tax Change
Dollars
Percent
‐61
‐333
‐807
‐1,134
‐1,233
‐1,304
‐1,398
‐1,561
‐1,778
‐7,828
‐22,912
‐1,537
‐20.5
‐61.3
‐42.7
‐29.9
‐20.0
‐12.1
‐7.7
‐4.4
‐2.2
‐3.7
‐2.1
‐4.5
Share of Federal Taxes
Change (% Points)
0.0
‐0.1
‐0.2
‐0.2
‐0.2
‐0.4
‐0.3
0.0
0.5
0.1
0.7
0.0
Under the Proposal
0.0
0.0
0.3
0.6
1.0
4.6
7.6
28.2
21.4
9.7
26.4
100.0
Average Federal Tax Rate5
Change (% Points)
‐1.3
‐2.1
‐3.1
‐3.1
‐2.6
‐2.0
‐1.5
‐1.1
‐0.6
‐1.1
‐0.7
‐1.2
Under the Proposal
4.9
1.3
4.1
7.3
10.5
14.3
18.3
23.5
27.0
28.3
34.6
24.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Average Income (Dollars)
Number (thousands)
Percent of Total
2,132
3,870
4,833
4,426
4,060
9,605
9,045
16,613
5,275
957
490
61,567
3.5
6.3
7.9
7.2
6.6
15.6
14.7
27.0
8.6
1.6
0.8
100.0
4,815
16,251
26,206
36,703
47,252
65,977
91,845
144,066
298,718
716,145
3,102,780
132,758
Average Federal Tax Burden (Dollars)
298
543
1,890
3,798
6,174
10,741
18,189
35,379
82,406
210,352
1,096,488
33,874
Average After‐
Tax Income 4 (Dollars)
4,517
15,709
24,316
32,905
41,078
55,236
73,656
108,687
216,312
505,793
2,006,292
98,884
Average Federal Tax Rate 5
6.2
3.3
7.2
10.4
13.1
16.3
19.8
24.6
27.6
29.4
35.3
25.5
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.1
0.8
1.6
2.0
2.4
7.8
10.2
29.3
19.3
8.4
18.6
100.0
0.2
1.0
1.9
2.4
2.7
8.7
10.9
29.7
18.7
8.0
16.2
100.0
0.0
0.1
0.4
0.8
1.2
5.0
7.9
28.2
20.8
9.7
25.8
100.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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. 16‐Mar‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table ‐ Head of Household Tax Units
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax Increase
52.9
62.8
89.7
94.3
96.0
93.0
86.4
65.0
65.3
97.0
88.2
81.1
0.0
0.5
0.4
0.5
0.4
0.2
0.4
0.0
0.2
1.2
10.4
0.4
Percent Change in After‐Tax Income 4
4.0
4.1
4.2
3.5
2.9
2.1
1.3
0.6
0.9
1.3
0.8
2.5
Share of Total Federal Tax Change
3.0
15.3
21.5
19.1
13.1
16.7
5.8
2.6
1.4
0.8
0.8
100.0
Average Federal Tax Change
Dollars
Percent
‐286
‐674
‐1,042
‐1,115
‐1,145
‐1,052
‐911
‐615
‐1,901
‐6,321
‐14,948
‐911
55.2
89.9
‐83.4
‐24.3
‐14.5
‐8.2
‐4.4
‐1.8
‐2.4
‐3.3
‐1.4
‐12.7
Share of Federal Taxes
Change (% Points)
‐0.5
‐2.5
‐2.6
‐1.3
‐0.2
1.3
1.6
2.3
0.8
0.3
1.0
0.0
Under the Proposal
‐1.2
‐4.7
0.6
8.6
11.2
27.1
18.3
20.4
8.0
3.3
8.4
100.0
Average Federal Tax Rate5
Change (% Points)
‐4.3
‐4.3
‐4.0
‐3.1
‐2.4
‐1.6
‐1.0
‐0.5
‐0.7
‐0.9
‐0.5
‐2.1
Under the Proposal
‐12.2
‐9.1
0.8
9.6
14.4
18.4
21.9
25.2
26.0
26.9
35.9
14.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Average Income (Dollars)
Number (thousands)
Percent of Total
2,386
5,181
4,712
3,910
2,610
3,632
1,462
952
165
28
12
25,098
9.5
20.6
18.8
15.6
10.4
14.5
5.8
3.8
0.7
0.1
0.1
100.0
6,591
15,741
26,276
36,461
47,096
64,017
90,229
134,253
294,759
688,030
2,955,354
43,104
Average Federal Tax Burden (Dollars)
‐518
‐750
1,250
4,598
7,913
12,815
20,684
34,397
78,581
191,144
1,074,619
7,200
Average After‐
Tax Income 4 (Dollars)
7,109
16,492
25,025
31,863
39,184
51,202
69,544
99,856
216,178
496,886
1,880,735
35,904
Average Federal Tax Rate 5
‐7.9
‐4.8
4.8
12.6
16.8
20.0
22.9
25.6
26.7
27.8
36.4
16.7
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of Federal Taxes
Percent of Total
Percent of Total
Percent of Total
1.5
7.5
11.4
13.2
11.4
21.5
12.2
11.8
4.5
1.8
3.4
100.0
1.9
9.5
13.1
13.8
11.4
20.6
11.3
10.6
4.0
1.5
2.6
100.0
‐0.7
‐2.2
3.3
10.0
11.4
25.8
16.7
18.1
7.2
2.9
7.4
100.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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. 16‐Mar‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table ‐ Tax Units with Children
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax Increase
53.0
71.5
90.9
96.5
97.1
97.0
94.1
85.5
69.6
95.4
91.7
86.5
0.0
0.3
0.3
0.4
0.4
0.2
0.7
0.2
1.0
2.5
7.0
0.4
Percent Change in After‐Tax Income 4
4.2
4.9
5.6
4.8
4.1
2.9
2.1
1.1
0.6
1.6
1.0
1.9
Share of Total Federal Tax Change
1.2
6.7
11.2
11.0
8.9
15.8
12.3
16.1
5.1
5.4
6.1
100.0
Average Federal Tax Change
Dollars
Percent
‐291
‐852
‐1,416
‐1,557
‐1,609
‐1,529
‐1,533
‐1,214
‐1,231
‐7,715
‐18,876
‐1,441
40.6
64.3
‐170.2
‐36.5
‐21.2
‐12.4
‐7.8
‐3.4
‐1.5
‐3.5
‐1.7
‐5.9
Share of Federal Taxes
Change (% Points)
‐0.1
‐0.5
‐0.7
‐0.6
‐0.4
‐0.5
‐0.2
0.8
1.0
0.2
1.0
0.0
Under the Proposal
‐0.3
‐1.1
‐0.3
1.2
2.1
6.9
9.2
28.8
21.3
9.2
22.8
100.0
Average Federal Tax Rate5
Change (% Points)
‐4.6
‐5.3
‐5.4
‐4.3
‐3.4
‐2.4
‐1.7
‐0.9
‐0.4
‐1.1
‐0.6
‐1.5
Under the Proposal
‐16.1
‐13.6
‐2.2
7.4
12.7
16.5
19.8
24.3
27.7
29.7
36.0
23.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Average Income (Dollars)
Number (thousands)
Percent of Total
2,836
5,625
5,645
5,039
3,930
7,341
5,725
9,407
2,939
495
231
49,348
5.8
11.4
11.4
10.2
8.0
14.9
11.6
19.1
6.0
1.0
0.5
100.0
6,263
15,969
26,204
36,562
47,287
65,172
91,743
143,468
297,723
713,890
3,118,562
99,630
Average Federal Tax Burden (Dollars)
‐717
‐1,324
832
4,270
7,596
12,284
19,708
36,063
83,554
219,964
1,141,611
24,497
Average After‐
Tax Income 4 (Dollars)
6,979
17,293
25,372
32,293
39,691
52,888
72,035
107,405
214,169
493,926
1,976,951
75,133
Average Federal Tax Rate 5
‐11.4
‐8.3
3.2
11.7
16.1
18.9
21.5
25.1
28.1
30.8
36.6
24.6
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.4
1.8
3.0
3.8
3.8
9.7
10.7
27.5
17.8
7.2
14.7
100.0
0.5
2.6
3.9
4.4
4.2
10.5
11.1
27.3
17.0
6.6
12.3
100.0
‐0.2
‐0.6
0.4
1.8
2.5
7.5
9.3
28.1
20.3
9.0
21.9
100.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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. 16‐Mar‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0072
Administration's FY2012 Budget Proposals
Allow the 2001‐2003 Tax Cuts to Expire at the Highest Income Levels
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table ‐ Elderly Tax Units
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax Increase
1.3
14.1
37.1
55.5
66.7
86.6
95.7
95.6
94.2
93.2
89.8
54.1
0.0
0.1
0.4
0.9
0.2
0.3
0.3
0.3
0.7
3.0
9.2
0.4
Percent Change in After‐Tax Income 4
0.1
0.2
0.7
1.0
1.0
1.4
1.7
2.1
1.9
1.9
1.7
1.5
Share of Total Federal Tax Change
0.1
0.8
3.0
3.5
3.2
12.3
11.2
25.3
15.8
7.7
17.1
100.0
Average Federal Tax Change
Dollars
Percent
‐7
‐35
‐165
‐321
‐428
‐833
‐1,250
‐2,321
‐4,112
‐9,205
‐34,006
‐936
‐3.0
‐8.1
‐12.3
‐12.4
‐10.0
‐10.8
‐8.6
‐7.6
‐4.9
‐4.2
‐2.9
‐5.6
Share of Federal Taxes
Change (% Points)
0.0
0.0
‐0.1
‐0.1
‐0.1
‐0.4
‐0.2
‐0.4
0.1
0.2
1.0
0.0
Under the Proposal
0.1
0.5
1.3
1.5
1.7
6.0
7.1
18.4
18.2
10.6
34.6
100.0
Average Federal Tax Rate5
Change (% Points)
‐0.1
‐0.2
‐0.6
‐0.9
‐0.9
‐1.3
‐1.4
‐1.6
‐1.4
‐1.3
‐1.1
‐1.2
Under the Proposal
3.5
2.5
4.5
6.2
8.2
10.5
14.7
19.7
26.1
29.5
36.3
20.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level (thousands of 2009 dollars) 2
Less than 10
10‐20
20‐30
30‐40
40‐50
50‐75
75‐100
100‐200
200‐500
500‐1,000
More than 1,000
All
Tax Units 3
Average Income (Dollars)
Number (thousands)
Percent of Total
2,157
6,690
5,381
3,213
2,197
4,326
2,635
3,191
1,123
246
148
31,333
6.9
21.4
17.2
10.3
7.0
13.8
8.4
10.2
3.6
0.8
0.5
100.0
6,180
15,817
25,874
36,522
47,041
65,389
90,496
143,867
305,622
717,204
3,185,815
78,111
Average Federal Tax Burden (Dollars)
223
428
1,340
2,588
4,304
7,711
14,537
30,702
83,898
220,981
1,189,568
16,681
Average After‐
Tax Income 4 (Dollars)
5,956
15,390
24,534
33,934
42,737
57,678
75,960
113,166
221,724
496,222
1,996,248
61,431
Average Federal Tax Rate 5
3.6
2.7
5.2
7.1
9.2
11.8
16.1
21.3
27.5
30.8
37.3
21.4
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.5
4.3
5.7
4.8
4.2
11.6
9.7
18.8
14.0
7.2
19.2
100.0
0.7
5.4
6.9
5.7
4.9
13.0
10.4
18.8
12.9
6.4
15.3
100.0
0.1
0.6
1.4
1.6
1.8
6.4
7.3
18.8
18.0
10.4
33.6
100.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0509‐7).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law. Proposal would; a) extend parts of the 2001 and 2003 tax cuts, including marriage penalty relief, the 10, 15, 25, 28 and a portion of the 33 percent brackets, and the 0%/15% rate structure on capital gains and qualified dividends for taxpayers in those brackets; b) tax capital gains and qualified dividends at 20% for taxpayers in the top two brackets and repeal the 8%/18% rates for assets held more than 5 years; c) set the threshold for the 36 percent bracket at $200,000 (single), $250,000 (married), or $225,000 (head of household), indexed for inflation after 2009, less the standard deduction and one personal exemption (two if married); d) set the thresholds for PEP and Pease at $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; e) extend the $1,000 child tax credit, $3,000 (not indexed) refundability threshold, and allow against the AMT; f) extend the maximum credit amount for the child and dependent care tax credit; g) increase the phase‐out range and eliminate the 60‐month limit on the deductibility of student loan interest payments. (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) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(4) 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.
(5) 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.