4‐Aug‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0260
Tax Benefits of the American Opportunity Tax Credit, Lifetime Learning Credit, Tuition and Fees Deduction and the Student Loan Interest Deduction
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 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
Without Benefit
With Benefit
7.5
6.9
10.7
13.2
14.0
16.5
19.0
19.9
2.8
0.7
1.3
12.1
92.5
93.1
89.3
86.8
86.0
83.5
81.0
80.1
97.2
99.3
98.7
87.9
Benefit as Percent of After‐Tax Income 4
Average Benefit
Share of Total Benefits
1.0
0.4
0.5
0.4
0.4
0.3
0.3
0.2
0.0
0.0
0.0
0.2
7.1
7.3
10.4
10.6
9.1
16.0
14.8
23.5
1.0
0.0
0.0
100.0
Dollars
61
54
105
130
139
170
226
268
38
10
6
128
Percent of Tax
68.5
36.1
7.4
3.7
2.5
1.8
1.6
1.0
0.1
0.0
0.0
1.1
Share of Federal Taxes
With Credits and Deductions
0.1
0.2
1.5
3.1
4.0
9.5
10.3
26.1
18.5
7.8
18.9
100.0
Without Credits and Deductions
0.2
0.3
1.6
3.2
4.0
9.6
10.3
26.0
18.3
7.7
18.7
100.0
Average Federal Tax Rate 5
With Credits and Deductions
Without Credits and Deductions
1.5
1.0
5.7
10.0
12.5
15.0
17.0
19.7
22.7
24.3
29.1
18.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 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)
24,457
28,266
20,763
17,188
13,691
19,752
13,684
18,322
5,366
907
433
163,869
Pre‐Tax Income
Percent of Total
14.9
17.3
12.7
10.5
8.4
12.1
8.4
11.2
3.3
0.6
0.3
100.0
Average (dollars)
Percent of Total
5,898
14,998
24,923
34,760
44,748
62,065
85,915
140,324
294,445
686,468
2,906,843
65,357
1.4
4.0
4.8
5.6
5.7
11.5
11.0
24.0
14.8
5.8
11.8
100.0
Federal Tax Burden
After‐Tax Income 4
Average (dollars)
Percent of Total
Average (dollars)
89
150
1,431
3,476
5,592
9,331
14,594
27,584
66,815
166,985
844,927
11,841
0.1
0.2
1.5
3.1
4.0
9.5
10.3
26.1
18.5
7.8
18.9
100.0
5,810
14,848
23,492
31,284
39,156
52,734
71,320
112,740
227,630
519,484
2,061,916
53,516
Percent of Total
1.6
4.8
5.6
6.1
6.1
11.9
11.1
23.6
13.9
5.4
10.2
100.0
Average Federal Tax Rate 5
1.5
1.0
5.7
10.0
12.5
15.0
17.0
19.7
22.7
24.3
29.1
18.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
Number of AMT Taxpayers (millions). Baseline: 4.3 Proposal: 4.3
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is current law without the American Opportunity Tax Credit, Lifetime Learning Credit, tuition and fees deduction and the student loan interest deduction. (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. 2.5
1.4
6.2
10.4
12.8
15.3
17.3
19.9
22.7
24.3
29.1
18.3