21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.3
0.2
0.6
1.7
10.4
17.9
69.1
100.0
-3
-9
-58
-119
-525
-112
0.0
0.0
-0.1
-0.1
-0.2
-0.2
4.6
10.3
16.4
19.3
25.0
20.8
0.1
0.1
0.2
0.4
0.6
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.4
0.2
0.1
15.7
11.0
25.7
16.7
2.6
-237
-340
-977
-2,480
-3,887
-0.2
-0.2
-0.3
-0.1
-0.1
21.8
23.0
24.9
28.7
31.1
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: 5.0
Proposal: 5.0
** This table is part of a series of tables showing the distributional effects of moving incrementally from current law to current policy. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Law to Current Policy” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=366
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the
10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout
threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains
(0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and
limitation on itemized deductions (Pease); extension of the 33 and 35 percent tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5
million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.3
0.2
0.6
1.7
10.4
17.9
69.1
100.0
-3
-9
-58
-119
-525
-112
-0.5
-0.3
-0.7
-0.7
-0.7
-0.7
0.0
0.0
0.0
0.0
0.0
0.0
0.8
4.2
10.9
18.4
65.6
100.0
0.0
0.0
-0.1
-0.1
-0.2
-0.2
4.6
10.3
16.4
19.3
25.0
20.8
0.1
0.1
0.2
0.4
0.6
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.4
0.2
0.1
15.7
11.0
25.7
16.7
2.6
-237
-340
-977
-2,480
-3,887
-0.8
-0.8
-1.1
-0.5
-0.2
0.0
0.0
-0.1
0.1
0.1
14.2
10.4
16.1
25.0
12.5
-0.2
-0.2
-0.3
-0.1
-0.1
21.8
23.0
24.9
28.7
31.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 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
536
2,970
8,617
17,314
70,664
15,954
11,064
25,882
43,606
71,663
209,565
60,215
4.6
10.3
16.5
19.5
25.2
21.0
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.7
20.2
51.5
100.0
0.8
4.1
10.9
18.4
65.6
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
30,374
45,448
86,906
525,547
2,608,788
108,011
151,101
258,669
1,299,641
5,758,486
22.0
23.1
25.2
28.8
31.2
13.5
9.4
13.4
18.1
8.4
13.4
9.1
12.7
16.3
7.3
14.2
10.4
16.1
24.9
12.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 5.0
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for tax units in
15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 percent tax brackets.
Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.3
0.2
0.3
0.8
5.2
8.6
84.7
100.0
-2
-5
-30
-50
-501
-112
-1.6
-0.2
-0.4
-0.3
-0.9
-0.7
0.0
0.0
0.0
0.1
-0.1
0.0
0.1
2.9
8.7
17.6
70.5
100.0
0.0
0.0
-0.1
-0.1
-0.2
-0.2
1.0
8.5
15.1
18.9
24.9
20.8
0.1
0.1
0.3
0.6
0.8
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.4
0.3
0.1
13.1
11.8
32.5
27.2
4.1
-155
-278
-968
-3,356
-5,052
-0.6
-0.7
-1.3
-0.7
-0.2
0.0
0.0
-0.1
0.0
0.1
15.5
11.7
17.3
26.0
13.0
-0.1
-0.2
-0.3
-0.2
-0.1
21.9
23.2
24.6
28.5
30.9
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
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 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
114
2,221
7,000
14,691
59,198
15,954
10,821
23,987
39,322
62,875
176,349
60,215
1.0
8.5
15.1
18.9
25.1
21.0
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
19.9
55.7
100.0
0.1
2.9
8.7
17.6
70.6
100.0
15,019
7,540
5,940
1,436
142
9.6
4.8
3.8
0.9
0.1
117,658
167,170
294,212
1,584,726
7,360,192
25,937
38,973
73,449
454,265
2,279,204
91,720
128,197
220,763
1,130,461
5,080,988
22.0
23.3
25.0
28.7
31.0
14.7
10.5
14.6
19.0
8.7
14.5
10.2
13.8
17.1
7.6
15.5
11.7
17.4
26.0
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: 5.0
Proposal: 5.0
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 perc
tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.1
0.3
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.3
1.2
0.6
0.3
0.4
5.8
8.8
84.5
100.0
-2
-4
-62
-114
-1,314
-217
-0.4
-0.2
-1.1
-1.0
-3.3
-2.3
0.0
0.1
0.2
0.3
-0.6
0.0
1.6
5.2
12.8
21.2
59.1
100.0
0.0
0.0
-0.2
-0.2
-0.9
-0.5
7.1
10.7
16.9
20.8
25.6
20.9
0.2
0.3
0.7
1.4
1.5
0.0
0.0
0.0
0.0
0.0
0.7
0.9
1.8
1.4
0.3
14.8
12.8
32.4
24.5
2.5
-437
-803
-2,692
-10,112
-11,890
-2.2
-2.7
-5.1
-3.1
-0.7
0.0
0.0
-0.4
-0.1
0.2
15.7
10.9
14.1
18.3
8.8
-0.5
-0.7
-1.3
-1.0
-0.2
23.3
24.3
24.3
30.3
33.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
16,972
15,474
14,005
11,543
9,596
68,932
24.6
22.5
20.3
16.8
13.9
100.0
8,380
19,970
34,261
55,833
151,979
43,878
595
2,136
5,846
11,723
40,206
9,386
7,786
17,834
28,416
44,110
111,773
34,492
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
20,048
29,751
52,417
331,108
1,777,081
63,990
89,280
152,131
729,523
3,466,025
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
7.1
10.7
17.1
21.0
26.5
21.4
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.6
16.7
21.4
45.1
100.0
1.6
5.1
12.7
20.9
59.6
100.0
23.9
25.0
25.6
31.2
33.9
14.1
9.3
12.1
12.7
5.5
13.6
8.9
11.5
11.1
4.6
15.7
10.9
14.5
18.5
8.7
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).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for tax units in
15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 percent tax brackets.
Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.8
3.2
1.7
6.0
87.4
100.0
-3
-9
-4
-10
-115
-40
-2.4
-0.3
0.0
-0.1
-0.2
-0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.4
5.6
15.3
77.6
100.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
7.8
13.5
17.8
24.7
21.6
0.0
0.0
0.1
0.3
0.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
3.3
5.9
33.8
44.4
13.0
-9
-30
-213
-1,074
-3,123
0.0
-0.1
-0.3
-0.2
-0.1
0.0
0.0
0.0
0.0
0.0
15.7
12.7
19.5
29.8
14.7
0.0
0.0
-0.1
-0.1
0.0
21.3
22.8
24.8
28.0
30.3
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
6,622
8,956
11,470
15,032
18,609
61,357
10.8
14.6
18.7
24.5
30.3
100.0
14,526
33,405
59,671
95,023
281,842
126,020
118
2,624
8,078
16,945
69,733
27,246
14,408
30,780
51,593
78,078
212,109
98,773
8,860
4,843
3,890
1,015
102
14.4
7.9
6.3
1.7
0.2
138,312
192,091
337,723
1,748,464
7,890,377
29,506
43,779
83,813
490,657
2,396,246
108,806
148,311
253,909
1,257,807
5,494,131
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.8
7.9
13.5
17.8
24.7
21.6
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.8
19.4
65.1
100.0
0.1
1.4
5.5
15.2
77.6
100.0
21.3
22.8
24.8
28.1
30.4
15.9
12.0
17.0
23.0
10.5
15.9
11.9
16.3
21.1
9.3
15.6
12.7
19.5
29.8
14.7
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).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for tax units in
15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 percent tax brackets.
Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.2
2.0
6.6
18.4
72.4
100.0
0
-1
-4
-18
-162
-11
0.0
0.0
-0.1
-0.1
-0.4
-0.2
0.0
0.0
0.0
0.0
-0.1
0.0
-5.4
9.7
27.7
29.7
38.1
100.0
0.0
0.0
0.0
0.0
-0.1
0.0
-7.2
6.0
15.3
19.7
24.2
13.8
0.0
0.1
0.1
0.2
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.2
0.1
10.4
15.9
25.9
20.3
3.8
-36
-190
-416
-1,701
-3,599
-0.1
-0.5
-0.6
-0.4
-0.2
0.0
0.0
0.0
0.0
0.0
14.7
5.9
8.0
9.6
4.5
0.0
-0.1
-0.2
-0.1
-0.1
22.8
23.2
23.4
28.7
31.0
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
-966
1,831
7,680
15,125
43,432
5,757
14,455
28,786
42,595
61,756
135,089
36,003
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
25,734
36,085
65,508
410,578
2,157,929
87,028
118,809
212,910
1,013,022
4,792,574
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-7.2
6.0
15.3
19.7
24.3
13.8
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.4
24.6
19.4
19.0
100.0
-5.4
9.7
27.7
29.7
38.2
100.0
22.8
23.3
23.5
28.8
31.1
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.8
1.6
14.7
5.9
8.0
9.6
4.5
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 law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for tax units in
15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 percent tax brackets.
Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.2
3.4
17.5
77.0
100.0
0
-1
-2
-11
-57
-12
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
-1.4
2.3
10.2
20.4
68.4
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-8.9
6.1
15.4
19.4
25.9
20.5
0.0
0.0
0.0
0.1
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.9
6.8
33.4
31.0
7.2
-8
-21
-131
-508
-1,218
0.0
0.0
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
16.3
11.0
17.0
24.1
11.5
0.0
0.0
0.0
0.0
0.0
22.6
23.9
26.1
29.7
31.3
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
Cash Income Percentile2,3
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
-1,303
2,103
9,603
19,996
79,198
19,586
16,026
32,569
52,695
83,146
226,865
75,833
4,398
1,976
1,567
374
36
9.0
4.0
3.2
0.8
0.1
157,496
224,546
400,356
2,088,455
9,839,694
35,649
53,579
104,707
619,706
3,079,014
121,846
170,967
295,648
1,468,749
6,760,680
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.9
6.1
15.4
19.4
25.9
20.5
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.5
21.9
50.6
100.0
-1.4
2.3
10.2
20.4
68.4
100.0
22.6
23.9
26.2
29.7
31.3
14.8
9.5
13.4
16.7
7.6
14.4
9.1
12.4
14.7
6.5
16.3
11.0
17.1
24.1
11.5
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 law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 perc
tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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 T10-0153
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
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
0.1
0.7
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.4
0.4
1.2
0.8
0.3
0.7
5.4
8.6
84.7
100.0
-9
-14
-138
-238
-2,293
-498
-3.3
-1.6
-5.6
-3.0
-3.7
-3.7
0.0
0.0
-0.1
0.1
0.0
0.0
0.3
1.8
3.5
10.7
83.6
100.0
-0.1
-0.1
-0.3
-0.3
-0.9
-0.7
2.4
3.8
5.7
11.0
23.0
17.2
0.4
0.5
1.0
1.6
2.0
0.0
0.0
0.0
0.0
0.0
1.0
1.1
1.7
0.9
0.3
14.3
12.1
32.5
25.9
3.4
-896
-1,345
-3,543
-9,071
-12,215
-5.2
-4.6
-5.7
-2.2
-0.6
-0.2
-0.1
-0.4
0.7
0.7
10.0
9.6
20.6
43.4
21.9
-0.9
-0.9
-1.3
-0.7
-0.2
15.6
18.3
21.9
28.5
31.4
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
Cash Income Percentile2,3
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
271
860
2,493
7,965
61,481
13,515
10,628
21,668
38,601
62,273
195,567
62,223
2,427
1,362
1,394
434
42
8.0
4.5
4.6
1.4
0.1
105,444
153,103
267,882
1,396,961
6,520,091
17,322
29,419
62,221
406,889
2,062,172
88,122
123,684
205,661
990,072
4,457,919
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.5
3.8
6.1
11.3
23.9
17.8
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.4
12.2
18.0
57.8
100.0
0.3
1.7
3.6
10.6
83.7
100.0
16.4
19.2
23.2
29.1
31.6
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.1
22.6
9.9
10.2
9.7
21.0
42.8
21.2
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 law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend 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); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 perc
tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(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.