21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Summary Table
Percent of Tax Units4
Cash Income Percentile 2,3
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 ($)
1
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
1.2
5.6
11.8
24.1
49.4
15.3
0.0
0.0
-0.1
-0.1
-0.6
-0.3
0.1
1.1
2.7
6.4
89.6
100.0
1
10
27
78
1,239
205
0.0
0.0
0.1
0.1
0.4
0.3
4.6
10.3
16.6
19.6
26.4
21.6
0.0
0.0
0.0
0.0
0.0
36.5
51.3
69.8
87.6
94.5
-0.2
-0.2
-0.4
-1.3
-1.9
5.9
5.9
16.0
61.8
39.9
162
333
1,107
16,738
107,281
0.1
0.2
0.3
0.9
1.3
22.1
23.3
25.8
31.8
34.8
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: 3.8
Proposal: 3.8
** 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). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail 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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
1.2
5.6
11.8
24.1
49.4
15.3
0.0
0.0
-0.1
-0.1
-0.6
-0.3
0.1
1.1
2.7
6.4
89.6
100.0
1
10
27
78
1,239
205
0.2
0.3
0.3
0.5
1.7
1.3
0.0
0.0
-0.1
-0.1
0.3
0.0
0.8
4.0
10.6
17.9
66.6
100.0
0.0
0.0
0.1
0.1
0.4
0.3
4.6
10.3
16.6
19.6
26.4
21.6
0.0
0.0
0.0
0.0
0.0
36.5
51.3
69.8
87.6
94.5
-0.2
-0.2
-0.4
-1.3
-1.9
5.9
5.9
16.0
61.8
39.9
162
333
1,107
16,738
107,281
0.5
0.7
1.3
3.0
3.8
-0.1
-0.1
0.0
0.4
0.3
13.8
10.1
16.0
26.6
13.5
0.1
0.2
0.3
0.9
1.3
22.1
23.3
25.8
31.8
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, 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 AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
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
536
2,970
8,617
17,314
72,812
16,272
11,064
25,882
43,606
71,663
207,417
59,897
4.6
10.3
16.5
19.5
26.0
21.4
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.7
20.3
51.3
100.0
0.8
4.1
10.7
18.0
66.3
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
30,375
45,496
87,885
563,544
2,803,303
108,010
151,052
257,689
1,261,644
5,563,971
22.0
23.2
25.4
30.9
33.5
13.5
9.4
13.4
18.1
8.4
13.4
9.2
12.7
15.9
7.1
13.9
10.2
16.0
26.2
13.1
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: 3.8
Proposal: 3.8
(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). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table
Percent of Tax Units 4
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
1
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
0.4
3.8
9.5
20.5
45.6
15.3
0.0
0.0
-0.1
-0.1
-0.6
-0.3
0.0
0.5
1.8
5.2
92.5
100.0
0
5
19
56
995
205
0.1
0.2
0.3
0.4
1.6
1.3
0.0
0.0
-0.1
-0.2
0.3
0.0
0.1
2.8
8.5
17.1
71.4
100.0
0.0
0.0
0.0
0.1
0.4
0.3
1.0
8.5
15.2
19.0
26.3
21.6
0.0
0.0
0.0
0.0
0.0
32.7
47.1
66.3
86.1
94.2
-0.1
-0.2
-0.4
-1.3
-1.9
5.6
5.8
16.5
64.6
41.3
119
250
896
14,478
93,442
0.5
0.6
1.2
3.0
3.8
-0.1
-0.1
0.0
0.5
0.3
15.1
11.4
17.2
27.7
14.0
0.1
0.2
0.3
0.9
1.3
22.2
23.5
25.6
31.6
34.5
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
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
1
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
60,870
16,272
10,821
23,987
39,322
62,875
174,677
59,897
1.0
8.5
15.1
18.9
25.8
21.4
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
20.0
55.5
100.0
0.1
2.8
8.5
17.2
71.2
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
25,939
38,999
74,269
485,569
2,446,083
91,718
128,171
219,942
1,099,156
4,914,109
22.1
23.3
25.2
30.6
33.2
14.7
10.5
14.6
19.0
8.7
14.6
10.3
13.9
16.8
7.4
15.2
11.5
17.2
27.2
13.6
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: 3.8
Proposal: 3.8
(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). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
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
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
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.7
4.6
10.0
17.0
39.9
11.6
0.0
0.0
-0.1
-0.1
-0.6
-0.3
0.1
1.3
4.2
7.1
87.4
100.0
0
6
21
44
654
104
0.0
0.3
0.4
0.4
1.6
1.1
0.0
0.0
-0.1
-0.2
0.3
0.0
1.5
5.0
12.5
20.6
60.3
100.0
0.0
0.0
0.1
0.1
0.4
0.2
7.1
10.7
17.1
21.1
27.3
21.8
0.0
0.0
0.0
0.0
0.0
28.1
41.8
61.6
84.2
92.4
-0.2
-0.3
-0.5
-1.5
-2.1
6.8
8.1
20.2
52.3
30.4
97
244
807
10,417
69,036
0.5
0.8
1.5
3.0
3.7
-0.1
0.0
0.1
0.4
0.2
15.5
10.8
14.5
19.5
9.4
0.1
0.2
0.4
1.0
1.3
24.0
25.2
26.1
33.7
37.2
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
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
40,828
9,472
7,786
17,834
28,416
44,110
111,151
34,406
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
52,613
346,660
1,883,107
63,990
89,280
151,935
713,971
3,360,000
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.1
10.7
17.1
21.0
26.9
21.6
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.6
16.8
21.5
45.0
100.0
1.6
5.1
12.5
20.7
60.0
100.0
23.9
25.0
25.7
32.7
35.9
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.5
10.9
4.5
15.6
10.8
14.5
19.2
9.1
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
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
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
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.9
11.5
25.2
50.0
24.2
0.0
0.0
0.0
-0.1
-0.6
-0.4
0.0
0.3
1.1
4.6
94.0
100.0
0
7
22
71
1,176
379
0.0
0.3
0.3
0.4
1.6
1.4
0.0
0.0
-0.1
-0.1
0.2
0.0
0.0
1.4
5.4
14.7
78.4
100.0
0.0
0.0
0.0
0.1
0.4
0.3
0.8
7.9
13.6
17.9
26.0
22.5
0.0
0.0
0.0
0.0
0.0
36.9
50.6
69.5
87.2
95.2
-0.1
-0.2
-0.4
-1.3
-1.9
5.2
5.2
15.8
67.9
43.8
137
248
942
15,563
99,537
0.5
0.6
1.1
3.0
3.9
-0.1
-0.1
-0.1
0.5
0.4
15.1
12.3
19.2
31.7
15.8
0.1
0.1
0.3
0.9
1.3
21.4
22.9
25.4
31.0
34.0
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
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 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
71,964
27,923
14,408
30,780
51,593
78,078
209,878
98,097
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
29,509
43,818
84,939
527,027
2,578,981
108,803
148,273
252,784
1,221,438
5,311,396
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
7.9
13.5
17.8
25.5
22.2
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.8
19.5
64.9
100.0
0.1
1.4
5.4
14.9
78.2
100.0
21.3
22.8
25.2
30.1
32.7
15.9
12.0
17.0
23.0
10.5
16.0
11.9
16.3
20.6
9.0
15.3
12.4
19.3
31.2
15.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
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
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
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
4.8
11.4
26.8
3.9
0.0
0.0
0.0
0.0
-0.4
-0.1
0.0
0.5
3.7
9.0
86.7
100.0
0
1
6
26
564
33
0.0
0.0
0.1
0.2
1.3
0.6
0.0
-0.1
-0.1
-0.1
0.3
0.0
-5.3
9.6
27.4
29.4
38.9
100.0
0.0
0.0
0.0
0.0
0.3
0.1
-7.2
6.0
15.3
19.7
25.1
14.0
0.0
0.0
0.0
0.0
0.0
18.5
32.8
47.5
79.4
88.4
-0.1
-0.3
-0.4
-1.3
-1.9
9.0
8.7
16.5
52.6
31.5
90
302
771
12,860
87,379
0.4
0.8
1.2
2.9
3.8
0.0
0.0
0.1
0.2
0.2
14.5
5.9
8.1
10.4
4.9
0.1
0.2
0.3
0.9
1.3
22.9
23.5
24.0
31.8
34.7
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
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 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
44,268
5,799
14,455
28,786
42,595
61,756
134,253
35,960
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
36,088
65,995
439,435
2,326,719
87,028
118,805
212,423
984,164
4,623,784
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-7.2
6.0
15.3
19.7
24.8
13.9
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.5
24.6
19.4
18.9
100.0
-5.3
9.6
27.5
29.5
38.6
100.0
22.8
23.3
23.7
30.9
33.5
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.7
1.5
14.5
5.9
8.0
10.2
4.8
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Tax Units with Children
Percent of Tax Units 4
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
1
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
1.4
8.5
19.0
47.7
14.0
0.0
0.0
0.0
-0.1
-0.5
-0.3
0.0
0.1
1.6
4.7
93.6
100.0
0
1
14
44
1,044
189
0.0
0.1
0.2
0.2
1.3
0.9
0.0
0.0
-0.1
-0.1
0.2
0.0
-1.3
2.2
9.9
19.7
69.4
100.0
0.0
0.0
0.0
0.0
0.3
0.2
-8.9
6.1
15.4
19.4
27.2
21.2
0.0
0.0
0.0
0.0
0.0
35.2
51.1
69.3
86.9
94.4
-0.1
-0.1
-0.3
-1.2
-1.9
4.7
4.7
14.8
69.4
47.1
99
221
875
17,198
121,037
0.3
0.4
0.8
2.6
3.6
-0.1
-0.1
0.0
0.4
0.3
15.8
10.7
16.9
26.0
12.5
0.1
0.1
0.2
0.8
1.2
22.7
24.0
26.9
33.1
35.1
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 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
-1,303
2,103
9,603
19,996
82,093
20,075
16,026
32,569
52,695
83,146
223,970
75,344
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
35,656
53,665
106,780
674,848
3,336,718
121,840
170,881
293,575
1,413,606
6,502,976
1
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
26.8
21.0
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.6
22.0
50.3
100.0
-1.3
2.2
10.0
19.9
69.2
100.0
22.6
23.9
26.7
32.3
33.9
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.4
14.3
6.3
15.9
10.8
17.0
25.6
12.2
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). Policy is 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.
(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 T10-0163
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Increase Tax Rates on Long-Term Capital Gains; Reduce Tax Rates on Longer-Term Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Elderly Tax Units
Percent of Tax Units 4
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
1
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
0.5
7.1
15.9
40.1
70.5
25.3
0.0
-0.1
-0.1
-0.2
-1.0
-0.7
0.0
0.7
1.7
6.0
91.6
100.0
0
11
35
134
2,021
406
0.0
1.2
1.4
1.7
3.2
3.0
0.0
0.0
-0.1
-0.1
0.2
0.0
0.3
1.7
3.5
10.3
84.2
100.0
0.0
0.1
0.1
0.2
0.8
0.5
2.5
3.9
6.2
11.5
25.2
18.7
0.0
0.0
0.0
0.0
0.0
59.6
73.2
80.6
89.9
96.7
-0.4
-0.5
-0.8
-1.7
-2.2
6.9
7.2
19.4
58.2
32.7
350
653
1,721
16,630
95,401
2.0
2.2
2.8
3.9
4.4
-0.1
-0.1
0.0
0.4
0.3
9.9
9.5
20.7
44.1
22.2
0.3
0.4
0.6
1.2
1.5
16.8
19.7
24.0
31.5
34.7
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
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
271
860
2,493
7,965
62,843
13,765
10,628
21,668
38,601
62,273
194,205
61,972
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
29,425
62,564
423,408
2,165,730
88,122
123,678
205,318
973,553
4,354,361
1
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
24.5
18.2
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.4
12.2
18.1
57.6
100.0
0.3
1.7
3.6
10.4
84.0
100.0
16.4
19.2
23.4
30.3
33.2
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.1
22.3
9.8
10.0
9.5
20.8
43.7
21.8
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). Policy is 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.
(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.