21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
1
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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.5
7.7
19.6
43.6
11.9
0.0
0.0
0.0
0.0
-0.4
-0.2
0.0
0.3
1.1
3.8
94.8
100.0
0
1
6
25
720
112
0.0
0.0
0.0
0.0
0.3
0.2
4.6
10.3
16.6
19.6
26.7
21.8
0.0
0.0
0.0
0.0
0.0
31.7
44.5
63.3
79.4
85.2
-0.1
-0.1
-0.2
-0.8
-1.2
4.2
4.8
15.4
70.4
42.9
64
148
586
10,460
63,247
0.1
0.1
0.2
0.6
0.8
22.1
23.4
25.9
32.4
35.5
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: 3.8
Proposal: 3.7
** This table is part of a series of tables showing the distributional effects of moving incrementally from current policy to current law. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Policy to Current Law” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=367
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at
current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal
exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains (10 percent for tax units in 15 percent
bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
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
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.5
7.7
19.6
43.6
11.9
0.0
0.0
0.0
0.0
-0.4
-0.2
0.0
0.3
1.1
3.8
94.8
100.0
0
1
6
25
720
112
0.0
0.1
0.1
0.1
1.0
0.7
0.0
0.0
-0.1
-0.1
0.2
0.0
0.8
4.0
10.6
17.8
66.7
100.0
0.0
0.0
0.0
0.0
0.3
0.2
4.6
10.3
16.6
19.6
26.7
21.8
0.0
0.0
0.0
0.0
0.0
31.7
44.5
63.3
79.4
85.2
-0.1
-0.1
-0.2
-0.8
-1.2
4.2
4.8
15.4
70.4
42.9
64
148
586
10,460
63,247
0.2
0.3
0.7
1.8
2.2
-0.1
0.0
0.0
0.3
0.2
13.7
10.1
16.0
26.9
13.7
0.1
0.1
0.2
0.6
0.8
22.1
23.4
25.9
32.4
35.5
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, 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
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
537
2,980
8,645
17,392
74,050
16,476
11,063
25,872
43,579
71,586
206,179
59,692
4.6
10.3
16.6
19.6
26.4
21.6
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.8
20.3
51.1
100.0
0.8
4.0
10.6
17.9
66.6
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
30,537
45,829
88,991
580,266
2,910,532
107,848
150,719
256,584
1,244,922
5,456,742
22.1
23.3
25.8
31.8
34.8
13.5
9.4
13.4
18.1
8.4
13.5
9.2
12.7
15.8
7.0
13.8
10.1
16.0
26.6
13.5
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:3.8
Proposal: 3.7
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
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
0.0
0.7
5.4
16.0
40.1
11.9
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.5
2.3
97.2
100.0
0
0
3
13
574
112
0.0
0.0
0.0
0.1
0.9
0.7
0.0
0.0
-0.1
-0.1
0.2
0.0
0.1
2.8
8.4
17.0
71.6
100.0
0.0
0.0
0.0
0.0
0.2
0.2
1.0
8.5
15.2
19.0
26.5
21.8
0.0
0.0
0.0
0.0
0.0
28.2
41.0
60.1
77.7
84.9
-0.1
-0.1
-0.2
-0.8
-1.2
3.6
4.6
16.1
72.9
44.9
42
107
480
8,972
55,779
0.2
0.3
0.6
1.8
2.2
-0.1
-0.1
0.0
0.3
0.2
15.0
11.4
17.2
28.0
14.2
0.0
0.1
0.2
0.6
0.8
22.2
23.5
25.7
32.1
35.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
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
2,226
7,019
14,746
61,865
16,476
10,821
23,982
39,303
62,819
173,683
59,692
1.0
8.5
15.2
19.0
26.3
21.6
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.3
13.1
20.1
55.4
100.0
0.1
2.8
8.5
17.1
71.4
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
26,058
39,249
75,164
500,033
2,539,469
91,599
127,921
219,047
1,084,693
4,820,723
22.2
23.5
25.6
31.6
34.5
14.7
10.5
14.6
19.0
8.7
14.7
10.3
13.9
16.6
7.3
15.1
11.4
17.2
27.7
14.0
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: 3.7
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Single 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
0.0
1.2
6.3
13.9
35.3
8.8
0.0
0.0
0.0
0.0
-0.4
-0.2
0.0
0.2
1.5
4.3
94.1
100.0
0
0
4
15
386
57
0.0
0.0
0.1
0.1
0.9
0.6
0.0
0.0
-0.1
-0.1
0.2
0.0
1.5
5.0
12.4
20.5
60.5
100.0
0.0
0.0
0.0
0.0
0.3
0.1
7.1
10.7
17.1
21.1
27.6
22.0
0.0
0.0
0.0
0.0
0.0
24.7
37.4
55.1
72.7
80.2
-0.1
-0.2
-0.3
-1.0
-1.4
5.8
7.8
19.4
61.1
35.9
45
129
425
6,661
44,577
0.2
0.4
0.8
1.9
2.3
-0.1
0.0
0.0
0.3
0.2
15.4
10.8
14.6
19.8
9.5
0.1
0.1
0.2
0.6
0.9
24.0
25.3
26.3
34.3
38.1
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
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
2,142
5,867
11,768
41,482
9,576
7,785
17,828
28,394
44,065
110,497
34,301
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
20,144
29,996
53,420
357,067
1,952,066
63,893
89,036
151,128
703,564
3,291,040
1
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
21.1
27.3
21.8
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.7
16.8
21.5
44.8
100.0
1.5
5.0
12.5
20.6
60.3
100.0
24.0
25.2
26.1
33.7
37.2
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.5
10.7
4.4
15.5
10.8
14.5
19.5
9.4
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); 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. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Married Tax Units Filing Jointly
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
0.1
5.5
19.3
44.0
19.1
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.2
1.7
98.1
100.0
0
0
2
14
683
211
0.0
0.0
0.0
0.1
0.9
0.8
0.0
0.0
0.0
-0.1
0.2
0.0
0.0
1.4
5.3
14.6
78.5
100.0
0.0
0.0
0.0
0.0
0.2
0.2
0.8
7.9
13.6
17.9
26.2
22.6
0.0
0.0
0.0
0.0
0.0
31.5
43.6
63.6
79.9
87.2
0.0
-0.1
-0.2
-0.8
-1.1
3.0
3.6
15.4
76.2
47.0
43
97
511
9,720
59,522
0.2
0.2
0.6
1.8
2.2
-0.1
-0.1
0.0
0.3
0.2
15.0
12.2
19.2
32.1
16.0
0.0
0.1
0.2
0.6
0.8
21.5
23.0
25.6
31.6
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
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
2,631
8,100
17,016
73,139
28,302
14,408
30,774
51,571
78,007
208,704
97,718
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
29,646
44,065
85,879
542,574
2,678,469
108,666
148,025
251,844
1,205,891
5,211,909
1
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
13.6
17.9
26.0
22.5
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.6
64.8
100.0
0.0
1.4
5.4
14.7
78.4
100.0
21.4
22.9
25.4
31.0
34.0
15.9
12.0
17.0
23.0
10.5
16.1
12.0
16.3
20.4
8.9
15.1
12.3
19.2
31.7
15.8
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); 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. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Head of Household 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
0.0
0.3
3.1
8.3
21.9
2.8
0.0
0.0
0.0
0.0
-0.2
0.0
0.0
0.1
2.2
5.1
92.7
100.0
0
0
1
5
207
11
0.0
0.0
0.0
0.0
0.5
0.2
0.0
0.0
-0.1
-0.1
0.1
0.0
-5.3
9.6
27.3
29.3
39.0
100.0
0.0
0.0
0.0
0.0
0.1
0.0
-7.2
6.0
15.3
19.7
25.2
14.0
0.0
0.0
0.0
0.0
0.0
15.1
26.5
38.6
69.7
75.1
0.0
-0.1
-0.1
-0.6
-0.7
6.9
6.0
15.8
64.0
34.5
24
71
253
5,371
32,862
0.1
0.2
0.4
1.2
1.4
0.0
0.0
0.0
0.1
0.1
14.5
5.9
8.1
10.5
5.0
0.0
0.1
0.1
0.4
0.5
22.9
23.5
24.1
32.2
35.2
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
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
7,686
15,151
44,832
5,832
14,455
28,786
42,589
61,730
133,689
35,928
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
25,824
36,390
66,763
452,285
2,413,995
86,938
118,503
211,655
971,315
4,536,509
1
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
25.1
14.0
10.3
22.4
25.0
20.8
21.6
100.0
12.9
24.5
24.6
19.4
18.8
100.0
-5.3
9.6
27.4
29.4
38.9
100.0
22.9
23.5
24.0
31.8
34.7
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.1
3.6
1.5
14.5
5.9
8.1
10.4
4.9
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); 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. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
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
0.3
5.7
15.4
42.2
11.5
0.0
0.0
0.0
0.0
-0.2
-0.1
0.0
0.0
0.5
2.3
97.2
100.0
0
0
2
10
531
92
0.0
0.0
0.0
0.1
0.6
0.5
0.0
0.0
0.0
-0.1
0.1
0.0
-1.3
2.2
9.9
19.6
69.5
100.0
0.0
0.0
0.0
0.0
0.2
0.1
-8.9
6.1
15.4
19.4
27.3
21.3
0.0
0.0
0.0
0.0
0.0
30.8
44.1
63.0
79.3
85.2
0.0
-0.1
-0.2
-0.7
-0.9
2.9
3.4
15.9
75.0
45.5
30
78
459
9,114
57,383
0.1
0.1
0.4
1.3
1.7
-0.1
0.0
0.0
0.2
0.2
15.7
10.7
16.9
26.2
12.7
0.0
0.0
0.1
0.4
0.6
22.7
24.0
27.0
33.6
35.7
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
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
2,104
9,617
20,040
83,135
20,264
16,026
32,568
52,681
83,102
222,927
75,155
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
35,755
53,886
107,654
692,031
3,457,699
121,741
170,660
292,702
1,396,424
6,381,995
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
27.2
21.2
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.6
22.0
50.2
100.0
-1.3
2.2
9.9
19.7
69.4
100.0
22.7
24.0
26.9
33.1
35.1
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.4
14.1
6.2
15.8
10.7
16.9
26.0
12.5
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer. Policy is taxation of all dividends as ordinary income.
(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 T10-0165
Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset
Tax All Dividends as Ordinary Income
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
0.0
1.0
6.7
29.8
62.4
18.4
0.0
0.0
0.0
-0.1
-0.7
-0.4
0.0
0.1
0.4
2.4
97.1
100.0
0
0
6
34
1,320
250
0.0
0.1
0.2
0.4
2.0
1.8
0.0
0.0
-0.1
-0.1
0.2
0.0
0.3
1.6
3.4
10.2
84.4
100.0
0.0
0.0
0.0
0.1
0.5
0.3
2.5
3.9
6.2
11.6
25.8
19.0
0.0
0.0
0.0
0.0
0.0
52.3
63.6
73.3
79.9
86.8
-0.2
-0.3
-0.5
-1.3
-1.7
4.5
5.9
17.8
68.9
40.9
141
330
975
12,140
73,727
0.8
1.1
1.5
2.8
3.3
-0.1
-0.1
-0.1
0.4
0.3
9.8
9.4
20.7
44.5
22.5
0.1
0.2
0.4
0.9
1.1
16.9
19.9
24.4
32.4
35.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
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
870
2,528
8,100
64,862
14,171
10,628
21,658
38,566
62,139
192,186
61,567
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
17,672
30,078
64,282
440,022
2,261,044
87,772
123,025
203,599
956,939
4,259,047
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.5
3.9
6.2
11.5
25.2
18.7
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.5
12.3
18.2
57.4
100.0
0.3
1.7
3.5
10.3
84.2
100.0
16.8
19.7
24.0
31.5
34.7
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.1
22.1
9.6
9.9
9.5
20.7
44.1
22.2
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: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million
exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent; restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease); increased tax rates on long-term capital gains
(10 percent for tax units in 15 percent bracket, 20 percent for rest) and reduced rates for gains on assets held 5 years or longer. Policy is taxation of all dividends as ordinary income.
(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.