1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Summary Table
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units with Tax Increase or Cut
With Tax Cut
Pct of Tax
Avg Tax Cut
Units
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
3
With Tax Increase
Pct of Tax
Avg Tax
Units
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
27.8
64.5
69.6
1.7
0
0
0
0
0
0
0
999
3,029
13,668
84,230
16,521
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-1.7
-2.9
-0.5
Share of
Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
11.2
20.3
68.5
100.0
Average
Federal Tax
Change ($)
0
0
0
0
0
0
0
1
843
8,820
58,583
275
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.3
1.9
0.4
5
Under the
Proposal
2.6
1.9
7.0
11.5
14.3
16.9
18.9
21.6
24.7
27.9
34.8
21.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 4.5
Proposal: 3.9
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes.
Proposal would limit the value of itemized deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business
tax credits to two percent of a taxpayer's adjusted gross income. The cap would phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads
of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax
Increase
With Tax Cut
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
27.8
64.5
69.6
1.7
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-1.7
-2.9
-0.5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
11.2
20.3
68.5
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
1
843
8,820
58,583
275
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.2
4.8
5.9
1.8
Share of Federal Taxes
Change (% Points)
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.2
-0.5
-0.1
0.2
0.9
0.0
Under the
Proposal
0.1
0.3
1.4
2.8
3.5
9.6
9.8
24.8
17.3
8.1
22.3
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.3
1.9
0.4
Under the
Proposal
2.6
1.9
7.0
11.5
14.3
16.9
18.9
21.6
24.7
27.9
34.8
21.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
21,065
27,359
20,377
16,959
13,305
22,765
14,636
20,881
6,084
1,051
534
166,272
12.7
16.5
12.3
10.2
8.0
13.7
8.8
12.6
3.7
0.6
0.3
100.0
Pre-Tax Income
Average (dollars)
5,766
15,205
25,480
35,896
46,141
63,142
89,268
139,817
292,655
696,116
3,032,367
72,381
Percent of
Total
1.0
3.5
4.3
5.1
5.1
11.9
10.9
24.3
14.8
6.1
13.5
100.0
Federal Tax Burden
Average
(dollars)
151
285
1,789
4,119
6,574
10,674
16,900
30,150
71,406
185,705
997,919
14,984
Percent of
Total
0.1
0.3
1.5
2.8
3.5
9.8
9.9
25.3
17.4
7.8
21.4
100.0
After-Tax Income 4
Average (dollars)
5,615
14,919
23,691
31,777
39,567
52,468
72,368
109,667
221,249
510,411
2,034,448
57,397
Percent of
Total
1.2
4.3
5.1
5.7
5.5
12.5
11.1
24.0
14.1
5.6
11.4
100.0
Average
Federal Tax
Rate 5
2.6
1.9
7.0
11.5
14.3
16.9
18.9
21.6
24.4
26.7
32.9
20.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 4.5
Proposal: 3.9
* Less than 0.05
(1) Calendar year. Baseline is current policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes. Proposal would limit the value of itemized
deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business tax credits to two percent of a taxpayer's adjusted gross income. The cap would
phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax
Increase
With Tax Cut
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
36.2
60.1
61.2
0.5
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.6
-2.1
-3.2
-0.3
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.1
19.8
65.1
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
1,296
10,314
60,342
85
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
5.1
5.6
1.1
Share of Federal Taxes
Change (% Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.1
-0.2
0.1
0.2
0.6
0.0
Under the
Proposal
0.9
2.6
5.6
7.7
8.2
18.0
11.8
17.7
9.8
4.4
13.2
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
1.5
2.0
0.2
Under the
Proposal
5.7
5.7
11.3
14.7
18.7
20.9
23.5
24.3
26.1
30.4
38.3
20.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
16,722
19,121
12,334
9,158
5,981
8,668
3,570
3,358
794
131
74
80,622
Percent of
Total
20.7
23.7
15.3
11.4
7.4
10.8
4.4
4.2
1.0
0.2
0.1
100.0
Pre-Tax Income
Average (dollars)
5,678
15,084
25,339
35,802
45,980
62,437
88,424
136,678
298,894
696,170
2,952,272
39,043
Percent of
Total
3.0
9.2
9.9
10.4
8.7
17.2
10.0
14.6
7.5
2.9
6.9
100.0
Federal Tax Burden
Average
(dollars)
326
854
2,857
5,261
8,582
13,077
20,740
33,240
76,630
201,558
1,071,091
7,723
Percent of
Total
0.9
2.6
5.7
7.7
8.2
18.2
11.9
17.9
9.8
4.3
12.7
100.0
After-Tax Income 4
Average (dollars)
5,352
14,229
22,482
30,541
37,398
49,360
67,684
103,438
222,264
494,612
1,881,181
31,320
Percent of
Total
3.5
10.8
11.0
11.1
8.9
16.9
9.6
13.8
7.0
2.6
5.5
100.0
Average
Federal Tax
Rate 5
5.7
5.7
11.3
14.7
18.7
20.9
23.5
24.3
25.6
29.0
36.3
19.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* Less than 0.05
(1) Calendar year. Baseline is current policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes. Proposal would limit the value of itemized
deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business tax credits to two percent of a taxpayer's adjusted gross income. The cap would
phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax
Increase
With Tax Cut
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
25.9
65.2
71.2
3.8
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-1.7
-2.8
-0.6
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
10.2
21.0
68.8
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
726
8,621
56,668
627
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.0
4.7
5.9
2.1
Share of Federal Taxes
Change (% Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.6
-0.2
0.2
0.9
0.0
Under the
Proposal
0.0
-0.1
0.0
0.5
1.0
5.1
8.4
28.1
21.0
9.8
26.0
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.2
1.9
0.5
Under the
Proposal
-1.1
-2.3
0.9
6.1
8.7
13.5
17.0
20.9
24.4
27.6
34.2
22.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
1,291
2,559
2,875
3,624
4,468
10,281
9,429
16,457
5,091
885
440
57,802
Percent of
Total
2.2
4.4
5.0
6.3
7.7
17.8
16.3
28.5
8.8
1.5
0.8
100.0
Pre-Tax Income
Average (dollars)
5,093
15,850
25,634
36,207
46,489
63,998
89,794
140,888
291,809
696,396
2,988,320
132,789
Percent of
Total
0.1
0.5
1.0
1.7
2.7
8.6
11.0
30.2
19.4
8.0
17.1
100.0
Federal Tax Burden
Average
(dollars)
-56
-367
242
2,224
4,029
8,609
15,305
29,464
70,527
183,268
964,061
29,259
Percent of
Total
0.0
-0.1
0.0
0.5
1.1
5.2
8.5
28.7
21.2
9.6
25.1
100.0
After-Tax Income 4
Average (dollars)
5,150
16,217
25,392
33,982
42,461
55,389
74,489
111,424
221,282
513,128
2,024,260
103,530
Percent of
Total
0.1
0.7
1.2
2.1
3.2
9.5
11.7
30.6
18.8
7.6
14.9
100.0
Average
Federal Tax
Rate 5
-1.1
-2.3
0.9
6.1
8.7
13.5
17.0
20.9
24.2
26.3
32.3
22.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* Less than 0.05
(1) Calendar year. Baseline is current policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes. Proposal would limit the value of itemized
deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business tax credits to two percent of a taxpayer's adjusted gross income. The cap would
phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax
Increase
With Tax Cut
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
40.1
63.0
63.9
0.3
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.6
-1.4
-2.6
-0.1
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
20.7
19.3
60.0
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
1,226
7,197
49,069
35
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
4.1
5.1
0.7
Share of Federal Taxes
Change (% Points)
0.0
0.1
0.0
-0.1
-0.1
-0.2
-0.1
-0.2
0.1
0.1
0.4
0.0
Under the
Proposal
-1.8
-6.5
-0.6
8.5
12.0
27.4
18.5
21.8
8.5
3.4
8.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
1.1
1.7
0.1
Under the
Proposal
-11.9
-9.9
-0.6
8.0
13.1
16.8
19.7
23.0
25.0
27.0
35.5
12.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
2,911
5,398
4,846
3,748
2,505
3,317
1,353
905
149
24
11
25,256
Percent of
Total
11.5
21.4
19.2
14.8
9.9
13.1
5.4
3.6
0.6
0.1
0.0
100.0
Pre-Tax Income
Average (dollars)
6,577
15,312
25,728
35,771
45,998
62,381
88,201
132,511
287,163
675,227
2,859,898
39,986
Percent of
Total
1.9
8.2
12.4
13.3
11.4
20.5
11.8
11.9
4.3
1.6
3.1
100.0
Federal Tax Burden
Average
(dollars)
-784
-1,512
-158
2,875
6,045
10,461
17,327
30,429
70,604
175,368
965,301
4,975
Percent of
Total
-1.8
-6.5
-0.6
8.6
12.1
27.6
18.7
21.9
8.4
3.3
8.3
100.0
After-Tax Income 4
Average (dollars)
7,360
16,823
25,886
32,895
39,953
51,920
70,873
102,082
216,560
499,858
1,894,597
35,011
Percent of
Total
2.4
10.3
14.2
13.9
11.3
19.5
10.9
10.4
3.7
1.3
2.3
100.0
Average
Federal Tax
Rate 5
-11.9
-9.9
-0.6
8.0
13.1
16.8
19.7
23.0
24.6
26.0
33.8
12.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* Less than 0.05
(1) Calendar year. Baseline is current policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes. Proposal would limit the value of itemized
deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business tax credits to two percent of a taxpayer's adjusted gross income. The cap would
phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax
Increase
With Tax Cut
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
*
31.5
77.9
78.6
2.8
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-2.0
-3.0
-0.5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
13.4
23.6
63.0
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
945
10,159
59,076
392
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.3
5.3
6.0
2.1
Share of Federal Taxes
Change (% Points)
0.0
0.0
0.0
0.0
0.0
-0.2
-0.2
-0.6
-0.2
0.3
0.8
0.0
Under the
Proposal
-0.4
-1.4
-0.6
1.0
2.1
7.5
9.9
28.8
21.0
9.6
22.5
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.5
2.0
0.4
Under the
Proposal
-17.5
-15.6
-4.2
5.7
10.9
15.3
17.9
21.2
25.1
29.1
35.3
20.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
3,361
5,658
5,534
4,844
3,945
7,372
5,840
9,226
2,749
450
206
49,418
Percent of
Total
6.8
11.5
11.2
9.8
8.0
14.9
11.8
18.7
5.6
0.9
0.4
100.0
Pre-Tax Income
Average (dollars)
5,988
15,525
25,702
35,836
46,072
63,539
89,617
140,522
290,144
695,662
2,943,211
93,026
Percent of
Total
0.4
1.9
3.1
3.8
4.0
10.2
11.4
28.2
17.4
6.8
13.2
100.0
Federal Tax Burden
Average
(dollars)
-1,046
-2,415
-1,078
2,028
5,002
9,701
16,073
29,725
71,962
192,521
980,000
18,899
Percent of
Total
-0.4
-1.5
-0.6
1.1
2.1
7.7
10.1
29.4
21.2
9.3
21.7
100.0
After-Tax Income 4
Average (dollars)
7,034
17,941
26,780
33,808
41,070
53,838
73,544
110,797
218,182
503,141
1,963,211
74,127
Percent of
Total
0.7
2.8
4.1
4.5
4.4
10.8
11.7
27.9
16.4
6.2
11.1
100.0
Average
Federal Tax
Rate 5
-17.5
-15.6
-4.2
5.7
10.9
15.3
17.9
21.2
24.8
27.7
33.3
20.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* 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 policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes. Proposal would limit the value of itemized
deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business tax credits to two percent of a taxpayer's adjusted gross income. The cap would
phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
1-Aug-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0245
Limit Benefit of Specified Tax Expenditures to 2 Percent of AGI for High-Income Taxpayers
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax
Increase
With Tax Cut
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
17.6
43.9
61.2
1.1
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-1.2
-3.1
-0.5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.2
14.0
78.9
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
0
0
0
589
6,127
63,860
284
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
3.3
6.1
2.3
Share of Federal Taxes
Change (% Points)
0.0
0.0
0.0
0.0
0.0
-0.2
-0.2
-0.5
-0.3
0.1
1.1
0.0
Under the
Proposal
0.0
0.3
0.7
1.4
1.7
7.0
7.9
20.8
18.8
9.9
31.4
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.9
2.1
0.4
Under the
Proposal
0.9
0.9
2.7
4.8
5.9
9.9
13.4
17.8
22.6
27.4
36.2
17.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2013 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
3,030
8,603
4,956
3,838
2,823
5,216
3,053
3,858
1,285
239
130
37,068
Percent of
Total
8.2
23.2
13.4
10.4
7.6
14.1
8.2
10.4
3.5
0.7
0.4
100.0
Pre-Tax Income
Average (dollars)
6,762
15,150
25,187
35,853
46,514
63,113
88,974
139,885
298,833
698,342
3,081,067
71,055
Percent of
Total
0.8
5.0
4.7
5.2
5.0
12.5
10.3
20.5
14.6
6.4
15.2
100.0
Federal Tax Burden
Average
(dollars)
59
142
678
1,731
2,749
6,222
11,881
24,883
66,834
184,856
1,050,097
12,158
Percent of
Total
0.0
0.3
0.8
1.5
1.7
7.2
8.1
21.3
19.1
9.8
30.3
100.0
After-Tax Income 4
Average (dollars)
6,703
15,008
24,509
34,122
43,765
56,891
77,093
115,002
231,999
513,486
2,030,970
58,897
Percent of
Total
0.9
5.9
5.6
6.0
5.7
13.6
10.8
20.3
13.7
5.6
12.1
100.0
Average
Federal Tax
Rate 5
0.9
0.9
2.7
4.8
5.9
9.9
13.4
17.8
22.4
26.5
34.1
17.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* 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 policy, which makes 2001 tax law permanent with the exception of the temporary 2 percent reduction in Social Security payroll taxes. Proposal would limit the value of itemized
deductions, the exclusion for employer-sponsored health insurance premiums, and the child and dependent care and general business tax credits to two percent of a taxpayer's adjusted gross income. The cap would
phase in for married couples with AGI between $250,000 and $500,000 and for singles and heads of household with AGI between $200,000 and $400,000, indexed for inflation after 2009.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.