26‐May‐11
PRELIMINARY RESUPRELIMINARY RESULTS
http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2011
Summary Table
Tax Units with Tax Increase or Cut
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
Percent of Tax
Average Tax
Units
Cut
4
With Tax Increase
Percent of Tax
Average Tax
Units
Increase
Percent Change
in After‐Tax
5
Income
6
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
10.6
4.1
0.6
0.1
*
3.9
‐372
‐324
‐345
‐366
**
‐360
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0.4
0.1
0.0
0.0
0.0
0.0
74.9
21.0
3.1
0.3
0.1
100.0
‐40
‐13
‐2
0
0
‐14
‐0.4
‐0.1
0.0
0.0
0.0
0.0
0.4
5.6
12.4
16.5
23.1
18.1
*
*
*
0.1
*
**
**
**
‐298
**
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
0.0
0.0
0.0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
19.1
21.1
23.0
27.6
30.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011
dollars): 20% $16,812, 40% $33,542, 60% $59,486, 80% $103,465, 90% $163,173, 95% $210,998, 99% $532,613, 99.9% $2,178,886.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2011
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
10.6
4.1
0.6
0.1
*
3.9
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.0
0.0
74.9
21.0
3.1
0.3
0.1
100.0
‐40
‐13
‐2
0
0
‐14
‐52.8
‐0.9
0.0
0.0
0.0
‐0.1
‐0.1
0.0
0.0
0.0
0.1
0.0
0.1
2.6
9.3
18.1
69.8
100.0
‐0.4
‐0.1
0.0
0.0
0.0
0.0
0.4
5.6
12.4
16.5
23.1
18.1
*
*
*
0.1
*
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
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
15.2
11.4
17.6
25.7
13.1
0.0
0.0
0.0
0.0
0.0
19.1
21.1
23.0
27.6
30.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile, 2011
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 After‐
Tax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
Number
(thousands)
Percent of Total
43,661
36,819
32,344
26,761
23,243
163,869
26.6
22.5
19.7
16.3
14.2
100.0
9,187
24,603
44,639
79,524
251,746
65,357
75
1,396
5,535
13,078
58,051
11,811
9,112
23,207
39,103
66,446
193,695
53,546
0.8
5.7
12.4
16.5
23.1
18.1
3.8
8.5
13.5
19.9
54.6
100.0
4.5
9.7
14.4
20.3
51.3
100.0
0.2
2.7
9.3
18.1
69.7
100.0
11,775
5,676
4,619
1,173
120
7.2
3.5
2.8
0.7
0.1
130,276
183,757
320,086
1,530,773
6,859,873
24,880
38,750
73,656
422,915
2,113,342
105,397
145,007
246,430
1,107,857
4,746,531
19.1
21.1
23.0
27.6
30.8
14.3
9.7
13.8
16.8
7.7
14.1
9.4
13.0
14.8
6.5
15.1
11.4
17.6
25.6
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 0411‐1).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $16,812, 40%
$33,542, 60% $59,486, 80% $103,465, 90% $163,173, 95% $210,998, 99% $532,613, 99.9% $2,178,886.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011 1
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
15.6
1.9
0.2
*
*
3.9
0.0
0.0
0.0
0.0
0.0
0.0
0.7
0.0
0.0
0.0
0.0
0.0
89.4
8.6
1.1
0.2
0.0
100.0
‐57
‐6
‐1
0
0
‐14
18.1
‐0.8
0.0
0.0
0.0
‐0.1
‐0.1
0.0
0.0
0.0
0.1
0.0
‐0.7
1.4
7.5
17.1
74.6
100.0
‐0.7
0.0
0.0
0.0
0.0
0.0
‐4.4
3.5
11.1
15.9
23.0
18.1
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
16.2
12.6
18.9
26.9
13.6
0.0
0.0
0.0
0.0
0.0
19.3
20.8
22.9
27.4
30.5
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2011
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 After‐
Tax Income5
(Dollars)
Average Federal
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
6
Number
(thousands)
Percent of Total
36,119
34,184
32,894
30,355
29,277
163,869
22.0
20.9
20.1
18.5
17.9
100.0
8,514
21,971
39,696
68,751
214,472
65,357
‐315
776
4,424
10,904
49,230
11,811
8,828
21,195
35,272
57,847
165,243
53,546
‐3.7
3.5
11.2
15.9
23.0
18.1
2.9
7.0
12.2
19.5
58.6
100.0
3.6
8.3
13.2
20.0
55.1
100.0
‐0.6
1.4
7.5
17.1
74.5
100.0
14,737
7,285
5,822
1,433
144
9.0
4.5
3.6
0.9
0.1
109,930
160,327
274,602
1,320,449
5,985,092
21,263
33,381
62,805
362,231
1,824,622
88,668
126,946
211,797
958,218
4,160,469
19.3
20.8
22.9
27.4
30.5
15.1
10.9
14.9
17.7
8.0
14.9
10.5
14.1
15.7
6.8
16.2
12.6
18.9
26.8
13.6
Tax Rate
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $11,688, 40% $22,351, 60% $38,055, 80% $65,353, 90% $95,935, 95% $134,201, 99% $335,779,
99.9% $1,350,445.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011 1
Detail Table ‐ Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
3.9
0.3
*
*
0.0
1.2
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.0
0.0
0.0
94.8
4.7
0.2
0.3
0.0
100.0
‐14
‐1
0
0
0
‐4
‐6.1
‐0.1
0.0
0.0
0.0
‐0.1
‐0.1
0.0
0.0
0.0
0.1
0.0
1.1
4.3
12.5
21.2
60.8
100.0
‐0.2
0.0
0.0
0.0
0.0
0.0
3.2
6.2
12.2
17.5
23.5
17.1
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
0.0
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
17.9
8.1
14.8
20.1
9.8
0.0
0.0
0.0
0.0
0.0
20.9
21.6
22.5
28.7
33.6
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2011
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 After‐
Tax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
Number
(thousands)
Percent of Total
23,744
19,342
15,928
11,766
8,867
80,235
29.6
24.1
19.9
14.7
11.1
100.0
6,815
17,082
30,098
48,403
137,269
34,300
229
1,057
3,678
8,473
32,269
5,868
6,586
16,025
26,420
39,929
105,000
28,432
3.4
6.2
12.2
17.5
23.5
17.1
5.9
12.0
17.4
20.7
44.2
100.0
6.9
13.6
18.5
20.6
40.8
100.0
1.2
4.3
12.4
21.2
60.8
100.0
5,214
1,603
1,667
383
33
6.5
2.0
2.1
0.5
0.0
77,390
109,752
185,341
857,687
4,190,532
16,150
23,741
41,722
246,051
1,406,314
61,240
86,012
143,619
611,637
2,784,219
20.9
21.6
22.5
28.7
33.6
14.7
6.4
11.2
12.0
5.0
14.0
6.0
10.5
10.3
4.0
17.9
8.1
14.8
20.0
9.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $11,688, 40% $22,351, 60% $38,055, 80% $65,353, 90% $95,935, 95% $134,201, 99% $335,779,
99.9% $1,350,445.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011 1
Detail Table ‐ Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
24.0
3.4
0.3
0.1
*
2.3
0.0
0.0
0.0
0.0
0.0
0.0
0.7
0.0
0.0
0.0
0.0
0.0
79.2
15.3
2.1
0.6
0.2
100.0
‐91
‐11
‐1
0
0
‐8
8.8
‐1.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
‐0.4
0.4
4.4
14.6
80.9
100.0
‐0.7
0.0
0.0
0.0
0.0
0.0
‐8.8
2.9
10.0
15.0
22.8
19.5
*
*
0.0
0.1
*
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
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
0.0
0.0
0.0
0.0
15.7
14.6
21.1
29.5
14.6
0.0
0.0
0.0
0.0
0.0
18.7
20.7
23.0
27.1
29.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2011
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 After‐
Tax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
Number
(thousands)
Percent of Total
4,201
6,521
11,254
15,448
18,895
56,662
7.4
11.5
19.9
27.3
33.4
100.0
12,701
30,924
52,021
84,707
252,901
122,041
‐1,028
897
5,224
12,695
57,576
23,755
13,729
30,027
46,797
72,012
195,325
98,286
‐8.1
2.9
10.0
15.0
22.8
19.5
0.8
2.9
8.5
18.9
69.1
100.0
1.0
3.5
9.5
20.0
66.3
100.0
‐0.3
0.4
4.4
14.6
80.8
100.0
8,587
5,392
3,925
992
102
15.2
9.5
6.9
1.8
0.2
131,394
176,360
314,670
1,476,527
6,440,391
24,593
36,419
72,316
399,812
1,921,840
106,801
139,941
242,354
1,076,714
4,518,551
18.7
20.7
23.0
27.1
29.8
16.3
13.8
17.9
21.2
9.5
16.5
13.6
17.1
19.2
8.3
15.7
14.6
21.1
29.5
14.6
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $11,688, 40% $22,351, 60% $38,055, 80% $65,353, 90% $95,935, 95% $134,201, 99% $335,779,
99.9% $1,350,445.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011 1
Detail Table ‐ Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
46.1
4.7
0.8
0.1
*
16.8
0.0
0.0
0.0
0.0
0.0
0.0
1.3
0.1
0.0
0.0
0.0
0.2
91.4
7.4
1.0
0.1
0.0
100.0
‐168
‐14
‐3
0
0
‐60
10.6
12.3
‐0.1
0.0
0.0
‐1.9
‐2.0
‐0.2
0.6
0.7
1.0
0.0
‐18.0
‐1.3
31.2
37.0
51.0
100.0
‐1.5
‐0.1
0.0
0.0
0.0
‐0.2
‐15.5
‐0.5
11.2
16.5
22.5
9.0
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
0.0
0.0
0.0
0.0
0.0
0
0
‐1
0
0
0.0
0.0
0.0
0.0
0.0
0.3
0.2
0.2
0.3
0.1
17.0
9.1
11.0
13.9
6.9
0.0
0.0
0.0
0.0
0.0
20.3
21.4
22.0
27.5
30.6
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2011
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 After‐
Tax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
Number
(thousands)
Percent of Total
7,953
7,879
4,968
2,487
1,050
24,414
32.6
32.3
20.4
10.2
4.3
100.0
11,391
26,611
43,368
69,930
167,924
35,432
‐1,592
‐112
4,872
11,553
37,699
3,238
12,983
26,723
38,496
58,377
130,225
32,194
‐14.0
‐0.4
11.2
16.5
22.5
9.1
10.5
24.2
24.9
20.1
20.4
100.0
13.1
26.8
24.3
18.5
17.4
100.0
‐16.0
‐1.1
30.6
36.4
50.1
100.0
643
223
151
33
3
2.6
0.9
0.6
0.1
0.0
101,291
148,577
255,857
1,194,732
5,612,443
20,511
31,745
56,224
328,175
1,714,451
80,780
116,832
199,633
866,557
3,897,992
20.3
21.4
22.0
27.5
30.6
7.5
3.8
4.5
4.6
2.0
6.6
3.3
3.9
3.6
1.6
16.7
9.0
10.8
13.7
6.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $11,688, 40% $22,351, 60% $38,055, 80% $65,353, 90% $95,935, 95% $134,201, 99% $335,779,
99.9% $1,350,445.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011 1
Detail Table ‐ Tax Units with Children
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
50.9
5.6
0.7
0.1
*
11.6
0.0
0.0
0.0
0.0
0.0
0.0
1.3
0.1
0.0
0.0
0.0
0.1
89.0
9.0
1.1
0.2
0.0
100.0
‐187
‐17
‐2
0
0
‐42
8.4
5.8
0.0
0.0
0.0
‐0.3
‐0.3
0.0
0.0
0.1
0.2
0.0
‐3.1
‐0.4
8.0
19.5
76.0
100.0
‐1.5
‐0.1
0.0
0.0
0.0
‐0.1
‐19.7
‐1.0
11.4
16.3
23.9
17.7
*
*
*
0.1
*
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
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
0.1
0.1
0.0
18.5
11.7
19.9
25.9
12.3
0.0
0.0
0.0
0.0
0.0
20.1
21.4
24.5
28.8
31.2
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2011
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 After‐
Tax Income5
(Dollars)
Average Federal
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
6
Number
(thousands)
Percent of Total
9,624
10,630
9,718
9,731
8,493
48,380
19.9
22.0
20.1
20.1
17.6
100.0
12,221
30,191
53,686
91,659
279,232
87,155
‐2,225
‐294
6,138
14,941
66,777
15,470
14,446
30,485
47,547
76,717
212,456
71,685
‐18.2
‐1.0
11.4
16.3
23.9
17.8
2.8
7.6
12.4
21.2
56.2
100.0
4.0
9.3
13.3
21.5
52.0
100.0
‐2.9
‐0.4
8.0
19.4
75.8
100.0
4,479
1,994
1,626
394
37
9.3
4.1
3.4
0.8
0.1
153,349
204,015
372,645
1,704,575
8,017,842
30,844
43,653
91,309
490,785
2,498,500
122,505
160,362
281,335
1,213,790
5,519,342
20.1
21.4
24.5
28.8
31.2
16.3
9.7
14.4
15.9
7.0
15.8
9.2
13.2
13.8
5.9
18.5
11.6
19.8
25.9
12.3
Tax Rate
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
* Less than 0.05
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $11,688, 40% $22,351, 60% $38,055, 80% $65,353, 90% $95,935, 95% $134,201, 99% $335,779,
99.9% $1,350,445.
(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.
26‐May‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0127
Reduce Child Tax Credit Refundability Threshold to $0
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011 1
Detail Table ‐ Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax
Increase
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
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
0.1
0.8
0.2
*
*
0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.8
78.7
14.1
1.6
0.8
100.0
0
‐3
‐1
0
0
‐1
‐0.5
‐1.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.4
3.4
12.3
83.8
100.0
0.0
0.0
0.0
0.0
0.0
0.0
0.6
0.9
3.7
9.3
20.2
14.2
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
0.7
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
12.5
13.2
20.3
37.9
20.1
0.0
0.0
0.0
0.0
0.0
13.7
16.7
19.5
26.8
31.1
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2011
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 After‐
Tax Income5
(Dollars)
Average Federal
Share of Pre‐
Tax Income
Share of Post‐
Tax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
6
Number
(thousands)
Percent of Total
5,318
8,941
8,299
6,547
6,397
35,530
15.0
25.2
23.4
18.4
18.0
100.0
8,514
17,755
35,781
64,256
208,223
63,396
54
161
1,305
6,002
41,958
9,019
8,461
17,594
34,476
58,255
166,265
54,378
0.6
0.9
3.7
9.3
20.2
14.2
2.0
7.1
13.2
18.7
59.1
100.0
2.3
8.1
14.8
19.7
55.1
100.0
0.1
0.5
3.4
12.3
83.8
100.0
2,978
1,695
1,338
387
39
8.4
4.8
3.8
1.1
0.1
97,974
149,233
249,438
1,173,369
5,341,288
13,430
24,848
48,556
313,863
1,658,361
84,544
124,386
200,882
859,506
3,682,926
13.7
16.7
19.5
26.8
31.1
13.0
11.2
14.8
20.1
9.2
13.0
10.9
13.9
17.2
7.4
12.5
13.2
20.3
37.9
20.1
Tax Rate
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐1).
* Less than 0.05
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law. Proposal reduces refundability threshold of the child tax credit from $3,000 to $0.
(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 2011 dollars): 20% $11,688, 40% $22,351, 60% $38,055, 80% $65,353, 90% $95,935, 95% $134,201, 99% $335,779,
99.9% $1,350,445.
(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.