24-Jun-09
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 T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2009
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
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
With Tax
Increase
0.0
0.8
2.5
4.6
6.8
10.0
10.1
7.7
4.5
3.3
2.7
4.9
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.5
1.6
3.1
4.9
19.3
20.5
35.9
9.4
1.7
3.0
100.0
Average
Federal Tax
Change ($)
0
0
1
4
7
17
26
36
34
36
137
12
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-2.2
0.3
5.9
10.6
13.3
15.3
17.5
20.2
23.3
24.5
27.1
18.2
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
Number of AMT Taxpayers (millions). Baseline: 3.968
Proposal: 3.945
(1) Calendar year. Baseline is current law, proposal is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
24-Jun-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2009 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
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
2.5
4.6
6.8
10.0
10.1
7.7
4.5
3.3
2.7
4.9
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.5
1.6
3.1
4.9
19.3
20.5
35.9
9.4
1.7
3.0
100.0
Average Federal Tax Change
Dollars
0
0
1
4
7
17
26
36
34
36
137
12
Percent
0.0
0.8
0.1
0.1
0.1
0.2
0.2
0.1
0.1
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-0.1
0.1
1.6
3.1
4.0
10.5
11.5
27.4
18.2
7.8
16.0
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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)
18,691
24,650
20,270
15,408
12,353
20,535
14,202
18,105
5,002
866
390
151,485
Percent of
Total
12.3
16.3
13.4
10.2
8.2
13.6
9.4
12.0
3.3
0.6
0.3
100.0
Average
Income
(Dollars)
5,781
14,983
24,690
34,732
44,661
61,775
86,078
138,753
290,117
680,751
2,803,165
67,151
Average
Federal Tax
Burden
(Dollars)
-126
44
1,451
3,669
5,928
9,425
15,019
28,047
67,473
166,487
758,744
12,230
Average AfterTax Income 4
(Dollars)
5,907
14,939
23,239
31,062
38,733
52,350
71,059
110,707
222,644
514,265
2,044,421
54,922
Average
Federal Tax
Rate 5
-2.2
0.3
5.9
10.6
13.3
15.3
17.5
20.2
23.3
24.5
27.1
18.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.1
3.6
4.9
5.3
5.4
12.5
12.0
24.7
14.3
5.8
10.7
100.0
1.3
4.4
5.7
5.8
5.8
12.9
12.1
24.1
13.4
5.4
9.6
100.0
-0.1
0.1
1.6
3.1
4.0
10.5
11.5
27.4
18.2
7.8
16.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
Number of AMT Taxpayers (millions). Baseline: 3.968
Proposal: 3.945
(1) Calendar year. Baseline is current law, proposal is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
Under the
Proposal
-2.2
0.3
5.9
10.6
13.3
15.3
17.5
20.2
23.3
24.5
27.1
18.2
24-Jun-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2009 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
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
1.3
3.6
5.9
8.3
9.1
9.4
9.7
6.5
6.9
3.6
4.1
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
1.7
4.1
6.5
9.9
26.5
21.6
19.5
7.0
1.5
1.7
100.0
Average Federal Tax Change
Dollars
0
1
2
5
9
19
34
38
57
67
178
8
Percent
0.0
0.1
0.1
0.1
0.1
0.2
0.2
0.1
0.1
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.4
2.7
6.5
8.5
9.6
18.8
13.3
17.3
9.5
4.3
9.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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)
Percent of
Total
13,152
15,090
10,542
7,266
5,673
7,204
3,303
2,664
637
115
51
66,239
19.9
22.8
15.9
11.0
8.6
10.9
5.0
4.0
1.0
0.2
0.1
100.0
Average
Income
(Dollars)
5,692
14,806
24,568
34,753
44,620
60,914
85,491
134,746
292,731
682,877
2,766,656
38,368
Average
Federal Tax
Burden
(Dollars)
128
822
2,836
5,423
7,817
12,050
18,612
30,007
68,769
172,341
835,983
6,989
Average AfterTax Income 4
(Dollars)
5,564
13,984
21,732
29,330
36,802
48,864
66,879
104,739
223,962
510,536
1,930,673
31,379
Average
Federal Tax
Rate 5
2.3
5.6
11.5
15.6
17.5
19.8
21.8
22.3
23.5
25.2
30.2
18.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
3.0
8.8
10.2
9.9
10.0
17.3
11.1
14.1
7.3
3.1
5.6
100.0
3.5
10.2
11.0
10.3
10.0
16.9
10.6
13.4
6.9
2.8
4.8
100.0
0.4
2.7
6.5
8.5
9.6
18.8
13.3
17.3
9.5
4.3
9.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
(1) Calendar year. Baseline is current law, proposal is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
Under the
Proposal
2.3
5.6
11.6
15.6
17.5
19.8
21.8
22.3
23.5
25.3
30.2
18.2
24-Jun-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2009 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
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.4
3.0
5.0
11.5
11.0
7.5
4.2
2.7
2.6
6.6
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
0.3
0.7
1.5
14.4
20.3
46.0
11.3
1.8
3.7
100.0
Average Federal Tax Change
Dollars
0
0
1
2
4
17
24
36
31
29
133
19
Percent
0.0
0.0
0.9
0.1
0.1
0.2
0.2
0.1
0.1
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.0
-0.2
0.0
0.5
1.1
5.9
10.2
32.0
22.4
9.4
18.5
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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)
Percent of
Total
2,391
4,212
4,769
4,200
4,021
9,995
9,502
14,657
4,201
722
323
59,366
4.0
7.1
8.0
7.1
6.8
16.8
16.0
24.7
7.1
1.2
0.5
100.0
Average
Income
(Dollars)
5,172
15,527
24,849
34,951
44,825
62,707
86,519
139,929
289,872
680,719
2,741,179
111,151
Average
Federal Tax
Burden
(Dollars)
-156
-462
93
1,477
3,478
7,400
13,611
27,637
67,472
165,454
727,692
21,329
Average AfterTax Income 4
(Dollars)
5,328
15,989
24,756
33,474
41,347
55,307
72,908
112,292
222,399
515,265
2,013,487
89,823
Average
Federal Tax
Rate 5
-3.0
-3.0
0.4
4.2
7.8
11.8
15.7
19.8
23.3
24.3
26.6
19.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.2
1.0
1.8
2.2
2.7
9.5
12.5
31.1
18.5
7.5
13.4
100.0
0.2
1.3
2.2
2.6
3.1
10.4
13.0
30.9
17.5
7.0
12.2
100.0
0.0
-0.2
0.0
0.5
1.1
5.8
10.2
32.0
22.4
9.4
18.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
(1) Calendar year. Baseline is current law, proposal is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
Under the
Proposal
-3.0
-3.0
0.4
4.2
7.8
11.8
15.8
19.8
23.3
24.3
26.6
19.2
24-Jun-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2009 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
1.0
3.6
6.3
7.5
6.4
4.6
2.3
3.9
3.3
2.8
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
2.7
10.6
17.7
35.2
19.7
10.4
1.2
1.4
1.1
100.0
Average Federal Tax Change
Dollars
0
0
1
3
7
12
16
15
9
73
122
4
Percent
0.0
0.0
-0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-4.4
-11.5
-2.5
9.9
14.3
31.5
21.2
21.7
8.8
3.7
7.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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)
Percent of
Total
2,963
5,047
4,611
3,533
2,320
2,862
1,158
655
122
19
8
23,363
12.7
21.6
19.7
15.1
9.9
12.3
5.0
2.8
0.5
0.1
0.0
100.0
Average
Income
(Dollars)
6,673
15,028
24,801
34,391
44,563
60,643
84,653
129,635
287,210
664,816
2,693,182
36,821
Average
Federal Tax
Burden
(Dollars)
-1,263
-1,966
-465
2,406
5,308
9,457
15,686
28,526
62,320
164,706
738,273
3,677
Average AfterTax Income 4
(Dollars)
7,935
16,993
25,266
31,985
39,255
51,186
68,967
101,109
224,890
500,111
1,954,909
33,145
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-18.9
-13.1
-1.9
7.0
11.9
15.6
18.5
22.0
21.7
24.8
27.4
10.0
2.3
8.8
13.3
14.1
12.0
20.2
11.4
9.9
4.1
1.5
2.6
100.0
3.0
11.1
15.0
14.6
11.8
18.9
10.3
8.6
3.5
1.2
2.1
100.0
-4.4
-11.6
-2.5
9.9
14.3
31.5
21.2
21.7
8.8
3.7
7.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
(1) Calendar year. Baseline is current law, proposal is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
Under the
Proposal
-18.9
-13.1
-1.9
7.0
11.9
15.6
18.6
22.0
21.7
24.8
27.4
10.0
24-Jun-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2009 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
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
3.3
5.4
8.1
7.4
5.3
2.3
1.1
2.0
4.0
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
0.4
2.3
4.7
17.2
20.8
42.0
7.6
1.3
3.8
100.0
Average Federal Tax Change
Dollars
0
0
0
2
6
12
17
23
15
16
116
10
Percent
0.0
0.0
0.0
0.2
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-0.7
-2.2
-1.1
0.9
2.2
7.9
11.4
32.8
22.7
9.2
16.8
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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)
Percent of
Total
3,537
5,872
5,662
4,749
3,935
6,902
5,990
8,648
2,386
385
157
48,399
7.3
12.1
11.7
9.8
8.1
14.3
12.4
17.9
4.9
0.8
0.3
100.0
Average
Income
(Dollars)
6,332
15,226
24,911
34,605
44,672
62,286
86,360
139,724
288,487
677,932
2,789,597
85,231
Average
Federal Tax
Burden
(Dollars)
-1,535
-2,724
-1,455
1,408
4,174
8,392
13,892
27,786
69,792
174,520
783,587
15,134
Average AfterTax Income 4
(Dollars)
7,866
17,949
26,366
33,197
40,498
53,893
72,468
111,938
218,695
503,411
2,006,011
70,097
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-24.2
-17.9
-5.8
4.1
9.3
13.5
16.1
19.9
24.2
25.7
28.1
17.8
0.5
2.2
3.4
4.0
4.3
10.4
12.5
29.3
16.7
6.3
10.6
100.0
0.8
3.1
4.4
4.7
4.7
11.0
12.8
28.5
15.4
5.7
9.3
100.0
-0.7
-2.2
-1.1
0.9
2.2
7.9
11.4
32.8
22.7
9.2
16.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
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 is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
Under the
Proposal
-24.2
-17.9
-5.8
4.1
9.4
13.5
16.1
19.9
24.2
25.8
28.1
17.8
24-Jun-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0340
Medical Expense Deduction Floor Raised to 10 Percent of AGI
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2009 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
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.4
4.5
12.1
20.0
27.7
22.9
13.6
8.0
4.5
9.1
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
0.0
0.0
-0.1
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.9
2.9
18.5
21.4
38.3
13.5
2.0
2.3
100.0
Average Federal Tax Change
Dollars
0
0
0
3
11
33
75
110
108
83
186
27
Percent
0.0
0.0
0.0
0.2
0.5
0.7
0.8
0.5
0.2
0.1
0.0
0.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
-0.1
0.0
Under the
Proposal
-0.1
0.2
1.0
1.1
1.6
7.9
8.3
22.0
20.7
11.0
26.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
0.0
0.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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)
Percent of
Total
2,678
6,623
4,325
2,573
1,985
4,292
2,173
2,639
954
187
95
28,567
9.4
23.2
15.1
9.0
7.0
15.0
7.6
9.2
3.3
0.7
0.3
100.0
Average
Income
(Dollars)
6,433
14,921
24,432
34,692
44,821
61,376
85,782
139,139
291,469
679,583
2,749,752
65,824
Average
Federal Tax
Burden
(Dollars)
-55
79
604
1,167
2,163
4,778
9,912
21,770
57,036
154,173
727,752
9,178
Average AfterTax Income 4
(Dollars)
6,487
14,842
23,828
33,525
42,658
56,598
75,870
117,369
234,433
525,409
2,022,000
56,646
Average
Federal Tax
Rate 5
-0.9
0.5
2.5
3.4
4.8
7.8
11.6
15.7
19.6
22.7
26.5
13.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.9
5.3
5.6
4.8
4.7
14.0
9.9
19.5
14.8
6.8
13.9
100.0
1.1
6.1
6.4
5.3
5.2
15.0
10.2
19.1
13.8
6.1
11.8
100.0
-0.1
0.2
1.0
1.2
1.6
7.8
8.2
21.9
20.8
11.0
26.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-2).
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 is to raise the floor for deducting medical expenses to 10% of AGI.
(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.
Under the
Proposal
-0.9
0.5
2.5
3.4
4.9
7.8
11.6
15.7
19.6
22.7
26.5
14.0