15-Sep-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 T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2013 1
Summary Table
Tax Units with Tax Increase or Cut 4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
Pct of Tax
Avg Tax Cut
Units
With Tax Increase
Pct of Tax
Avg Tax
Units
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
0
0
0
0
0.0
0.0
0.0
0.0
15.0
2.2
0
0
0
0
9,200
9,200
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,381
200
0.0
0.0
0.0
0.0
0.5
0.3
3.8
10.8
17.4
21.4
29.7
23.9
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0.2
1.3
51.9
83.8
89.1
2,271
1,884
4,255
22,064
96,342
0.0
0.0
-0.9
-1.6
-1.8
0.2
0.4
31.9
67.5
32.2
5
25
2,208
18,483
85,877
0.0
0.0
0.7
1.1
1.1
24.6
25.9
28.6
36.4
40.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 21.0
Proposal: 22.7
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized
deductions and certain other tax expenditures for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates
assume that taxpayers would adjust their investment portfolio and optimally pay down their mortgage balance if their tax benefit from mortgage interest were reduced. For a
description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $17,909; 40% $37,090; 60% $64,531; 80% $111,344; 90% $160,377; 95% $227,314; 99% $592,985; 99.9% $2,682,143.
(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
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2013 1
Detail Table
Percent of Tax Units4
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
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.0
2.2
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,381
200
0.0
0.0
0.0
0.0
1.7
1.2
0.0
-0.1
-0.1
-0.2
0.4
0.0
0.6
3.9
10.0
17.6
67.7
100.0
0.0
0.0
0.0
0.0
0.5
0.3
3.8
10.8
17.4
21.4
29.7
23.9
0.0
0.0
0.0
0.0
0.0
0.2
1.3
51.9
83.8
89.1
0.0
0.0
-0.9
-1.6
-1.8
0.2
0.4
31.9
67.5
32.2
5
25
2,208
18,483
85,877
0.0
0.1
2.3
3.0
2.8
-0.2
-0.1
0.2
0.5
0.2
14.1
10.3
16.2
27.1
13.8
0.0
0.0
0.7
1.1
1.1
24.6
25.9
28.6
36.4
40.5
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
43,362
37,681
32,699
27,208
24,067
166,272
26.1
22.7
19.7
16.4
14.5
100.0
10,122
27,586
50,739
87,197
272,779
72,381
3.7
8.6
13.8
19.7
54.6
100.0
380
2,966
8,815
18,634
79,526
17,091
0.6
3.9
10.1
17.8
67.4
100.0
9,742
24,621
41,924
68,563
193,254
55,290
4.6
10.1
14.9
20.3
50.6
100.0
3.8
10.8
17.4
21.4
29.2
23.6
12,130
5,919
4,805
1,213
124
7.3
3.6
2.9
0.7
0.1
136,031
193,370
338,609
1,767,267
7,871,135
13.7
9.5
13.5
17.8
8.1
33,513
50,000
94,594
624,137
3,098,549
14.3
10.4
16.0
26.6
13.6
102,517
143,370
244,015
1,143,130
4,772,586
13.5
9.2
12.8
15.1
6.5
24.6
25.9
27.9
35.3
39.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 21.0
Proposal: 22.7
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax
expenditures for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally
pay down their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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%
$17,909; 40% $37,090; 60% $64,531; 80% $111,344; 90% $160,377; 95% $227,314; 99% $592,985; 99.9% $2,682,143.
(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.
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table
Percent of Tax Units
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
11.8
2.2
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,083
200
0.0
0.0
0.0
0.0
1.6
1.2
0.0
0.0
-0.1
-0.2
0.3
0.0
0.1
2.8
8.2
16.8
71.9
100.0
0.0
0.0
0.0
0.0
0.5
0.3
1.1
9.4
15.9
20.8
29.2
23.9
0.0
0.0
0.0
0.0
0.0
*
1.7
37.9
80.2
88.4
0.0
-0.1
-0.8
-1.6
-1.8
0.0
1.7
29.7
68.6
33.9
0
72
1,621
15,550
76,055
0.0
0.2
2.0
2.9
2.8
-0.2
-0.1
0.2
0.5
0.2
15.0
11.4
17.3
28.2
14.4
0.0
0.0
0.6
1.0
1.1
24.2
25.8
28.2
36.1
40.5
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
36,065
34,713
33,034
30,538
30,666
166,272
21.7
20.9
19.9
18.4
18.4
100.0
9,430
24,668
44,764
76,122
230,715
72,381
2.8
7.1
12.3
19.3
58.8
100.0
105
2,308
7,106
15,834
66,366
17,091
0.1
2.8
8.3
17.0
71.6
100.0
9,325
22,360
37,658
60,288
164,348
55,290
3.7
8.4
13.5
20.0
54.8
100.0
1.1
9.4
15.9
20.8
28.8
23.6
15,414
7,701
6,085
1,466
148
9.3
4.6
3.7
0.9
0.1
115,967
165,716
289,779
1,533,122
6,917,786
14.9
10.6
14.7
18.7
8.5
28,051
42,628
79,971
537,321
2,722,897
15.2
11.6
17.1
27.7
14.2
87,916
123,088
209,807
995,800
4,194,889
14.7
10.3
13.9
15.9
6.8
24.2
25.7
27.6
35.1
39.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 21.0
Proposal: 22.7
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax expenditures
for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally pay down
their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772;
99% $358,601; 99.9% $1,621,178.
(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.
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent Change
in After-Tax
Income5
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
6.4
0.8
0.0
0.0
0.0
0.0
-0.5
-0.2
0.0
0.0
0.0
0.0
0.0
0.0
*
18.7
75.7
87.2
0.0
0.0
-0.3
-1.7
-2.2
Share of Total
Federal Tax
Change
Average Federal Tax Change
Share of Federal Taxes
Under the
Proposal
Average Federal Tax Rate6
Dollars
Percent
Change (%
Points)
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
505
60
0.0
0.0
0.0
0.0
1.1
0.7
0.0
0.0
-0.1
-0.1
0.3
0.0
1.4
4.9
12.1
19.7
61.8
100.0
0.0
0.0
0.0
0.0
0.3
0.2
5.7
9.1
15.9
21.6
30.1
22.3
0.0
0.0
16.0
84.0
43.3
0
0
434
11,154
62,933
0.0
0.0
0.8
2.8
2.9
-0.1
-0.1
0.0
0.4
0.2
15.3
10.7
14.7
21.1
10.6
0.0
0.0
0.2
1.1
1.3
25.3
27.1
28.5
39.2
44.8
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
28.8
24.3
19.6
14.5
11.9
100.0
7,467
19,069
33,699
54,610
150,063
39,043
5.5
11.9
16.9
20.3
45.8
100.0
422
1,739
5,347
11,790
44,630
8,637
1.4
4.9
12.1
19.8
61.6
100.0
7,045
17,329
28,352
42,819
105,433
30,407
6.7
13.9
18.3
20.5
41.3
100.0
5.7
9.1
15.9
21.6
29.7
22.1
5,116
2,332
1,790
365
33
6.4
2.9
2.2
0.5
0.0
83,160
118,552
202,277
1,033,246
4,968,941
13.5
8.8
11.5
12.0
5.3
21,007
32,161
57,181
393,929
2,162,383
15.4
10.8
14.7
20.7
10.4
62,152
86,391
145,096
639,317
2,806,558
13.0
8.2
10.6
9.5
3.8
25.3
27.1
28.3
38.1
43.5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
23,198
19,587
15,802
11,719
9,604
80,622
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax
expenditures for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally
pay down their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772;
99% $358,601; 99.9% $1,621,178.
(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.
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units4
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
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
14.6
4.9
0.0
0.0
0.0
0.0
-0.7
-0.5
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,390
464
0.0
0.0
0.0
0.0
1.8
1.4
0.0
0.0
-0.1
-0.2
0.3
0.0
0.0
1.3
5.3
14.9
78.4
100.0
0.0
0.0
0.0
0.0
0.5
0.4
0.5
10.8
15.2
20.3
29.0
25.5
0.0
0.0
0.0
0.0
0.0
0.0
2.3
46.1
81.4
88.8
0.0
-0.1
-0.9
-1.5
-1.7
0.0
2.0
32.6
65.5
31.3
0
104
2,174
16,847
79,144
0.0
0.2
2.4
2.9
2.8
-0.2
-0.1
0.2
0.5
0.2
15.1
12.4
19.2
31.7
16.0
0.0
0.1
0.7
1.0
1.1
23.8
25.4
28.1
35.3
39.6
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
7.6
11.5
20.1
26.7
33.4
100.0
14,027
35,110
58,324
93,246
274,004
132,789
0.8
3.1
8.8
18.7
68.9
100.0
75
3,806
8,836
18,898
78,019
33,359
0.0
1.3
5.3
15.1
78.1
100.0
13,952
31,304
49,488
74,348
195,984
99,430
1.1
3.6
10.0
19.9
65.8
100.0
0.5
10.8
15.2
20.3
28.5
25.1
9,190
5,048
4,018
1,042
106
15.9
8.7
7.0
1.8
0.2
135,542
188,768
331,401
1,686,659
7,429,691
16.2
12.4
17.4
22.9
10.3
32,197
47,791
91,006
578,469
2,859,912
15.4
12.5
19.0
31.3
15.7
103,344
140,977
240,394
1,108,191
4,569,779
16.5
12.4
16.8
20.1
8.4
23.8
25.3
27.5
34.3
38.5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
4,398
6,664
11,624
15,415
19,298
57,802
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax
expenditures for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally
pay down their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772;
99% $358,601; 99.9% $1,621,178.
(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.
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent Change
in After-Tax
Income5
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.2
0.4
0.0
0.0
0.0
0.0
-0.4
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.6
33.2
82.1
86.2
0.0
0.0
-0.5
-1.3
-1.4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Share of Federal Taxes
Under the
Proposal
Average Federal Tax Rate6
Dollars
Percent
Change (%
Points)
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
452
23
0.0
0.0
0.0
0.0
1.0
0.4
0.0
0.0
-0.1
-0.1
0.2
0.0
-4.1
11.9
26.0
28.2
38.0
100.0
0.0
0.0
0.0
0.0
0.3
0.1
-6.4
7.9
17.4
21.6
27.5
15.8
0.0
0.8
33.6
65.6
28.0
0
19
1,033
11,196
53,890
0.0
0.1
1.5
2.3
2.1
-0.1
0.0
0.1
0.2
0.1
14.0
5.7
8.0
10.3
4.9
0.0
0.0
0.4
0.8
0.8
24.7
25.6
26.0
36.0
40.4
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
Federal Tax Burden
8,232
8,034
4,869
2,769
1,263
25,256
32.6
31.8
19.3
11.0
5.0
100.0
12,526
29,745
49,199
75,439
175,207
39,986
10.2
23.7
23.7
20.7
21.9
100.0
-801
2,363
8,538
16,282
47,675
6,311
-4.1
11.9
26.1
28.3
37.8
100.0
13,327
27,382
40,661
59,157
127,531
33,675
12.9
25.9
23.3
19.3
18.9
100.0
-6.4
7.9
17.4
21.6
27.2
15.8
814
230
186
33
3
3.2
0.9
0.7
0.1
0.0
111,657
154,037
266,330
1,361,869
6,471,563
9.0
3.5
4.9
4.5
1.9
27,609
39,378
68,177
479,425
2,558,687
14.1
5.7
7.9
10.1
4.8
84,048
114,659
198,153
882,443
3,912,875
8.0
3.1
4.3
3.5
1.4
24.7
25.6
25.6
35.2
39.5
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Percent of
Total
Average (dollars)
Percent of
Total
After-Tax Income 5
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax
expenditures for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally
pay down their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772;
99% $358,601; 99.9% $1,621,178.
(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.
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Tax Units with Children
Percent of Tax Units
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
19.5
3.3
0.0
0.0
0.0
0.0
-0.8
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,709
289
0.0
0.0
0.0
0.0
1.9
1.3
0.0
0.0
-0.1
-0.3
0.4
0.0
-1.0
3.0
9.9
20.4
67.7
100.0
0.0
0.0
0.0
0.0
0.6
0.3
-8.2
9.0
18.1
22.6
30.3
24.3
0.0
0.0
0.0
0.0
0.0
0.1
6.2
72.6
90.9
92.8
0.0
-0.2
-1.4
-1.6
-1.7
0.0
3.8
43.1
53.0
22.6
1
275
3,869
19,792
91,528
0.0
0.5
3.4
2.8
2.5
-0.2
-0.1
0.3
0.4
0.1
15.6
10.5
16.6
25.0
11.7
0.0
0.1
1.0
1.0
1.0
25.5
26.8
29.7
37.1
40.5
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
10,088
10,789
10,009
9,950
8,349
49,418
20.4
21.8
20.3
20.1
16.9
100.0
13,356
33,957
60,740
101,182
298,935
93,026
2.9
8.0
13.2
21.9
54.3
100.0
-1,101
3,050
11,001
22,868
88,778
22,303
-1.0
3.0
10.0
20.6
67.3
100.0
14,456
30,907
49,739
78,314
210,157
70,723
4.2
9.5
14.2
22.3
50.2
100.0
-8.2
9.0
18.1
22.6
29.7
24.0
4,396
1,981
1,589
382
35
8.9
4.0
3.2
0.8
0.1
154,877
221,864
392,402
1,966,324
9,174,185
14.8
9.6
13.6
16.4
7.0
39,479
59,124
112,658
710,074
3,627,809
15.8
10.6
16.3
24.6
11.6
115,399
162,740
279,744
1,256,250
5,546,377
14.5
9.2
12.7
13.7
5.6
25.5
26.7
28.7
36.1
39.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax expenditures
for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally pay down
their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772;
99% $358,601; 99.9% $1,621,178.
(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.
15-Sep-11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11-0340
President Obama's American Jobs Act of 2011: 28 Percent Limitation on Certain Deductions and Exclusions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Elderly Tax Units
Percent of Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Percent Change
in After-Tax
Income5
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
9.7
1.8
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.2
23.2
71.7
88.1
0.0
0.0
-0.4
-1.9
-2.4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Share of Federal Taxes
Under the
Proposal
Average Federal Tax Rate
Dollars
Percent
Change (%
Points)
Change (%
Points)
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,180
220
0.0
0.0
0.0
0.0
1.8
1.5
0.0
0.0
-0.1
-0.2
0.2
0.0
0.1
0.6
3.7
10.8
84.7
100.0
0.0
0.0
0.0
0.0
0.5
0.3
0.8
1.8
6.0
13.0
28.3
20.4
0.0
0.1
14.1
85.9
48.3
0
3
737
16,386
89,966
0.0
0.0
1.1
3.3
3.5
-0.2
-0.2
-0.1
0.7
0.4
11.7
11.1
20.5
41.5
21.8
0.0
0.0
0.3
1.2
1.4
18.8
22.2
26.5
37.7
42.5
6
Under the
Proposal
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, 2013 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
5,988
9,396
8,334
6,402
6,913
37,068
16.2
25.4
22.5
17.3
18.7
100.0
9,531
20,198
40,053
69,759
232,751
71,055
2.2
7.2
12.7
17.0
61.1
100.0
75
366
2,383
9,043
64,617
14,265
0.1
0.7
3.8
11.0
84.5
100.0
9,456
19,832
37,669
60,716
168,134
56,790
2.7
8.9
14.9
18.5
55.2
100.0
0.8
1.8
6.0
13.0
27.8
20.1
3,175
1,753
1,557
427
44
8.6
4.7
4.2
1.2
0.1
105,683
152,604
266,474
1,382,440
6,274,992
12.7
10.2
15.8
22.4
10.4
19,828
33,855
69,807
504,551
2,577,217
11.9
11.2
20.6
40.8
21.4
85,855
118,749
196,667
877,888
3,697,775
13.0
9.9
14.6
17.8
7.7
18.8
22.2
26.2
36.5
41.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
* 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 law. Proposal is the 28 percent limitation in President Obama's American Jobs Act of 2011 which would limit the value of all itemized deductions and certain other tax expenditures
for high-income taxpayers by limiting the tax value of otherwise allowable deductions and exclusions to 28 percent. Estimates assume that taxpayers would adjust their investment portfolio and optimally pay down
their mortgage balance if their tax benefit from mortgage interest were reduced. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772;
99% $358,601; 99.9% $1,621,178.
(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.