27-Sep-11
PRELIMINARY RESULTS; UPDATED
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 T11-0365
President Obama's Proposals for the Joint Committee
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 3
With Tax Cut
Pct of Tax
Avg Tax Cut
Units
3.9
8.2
15.0
17.2
18.4
16.9
17.1
10.9
18.5
1.8
0.9
12.8
-24
-146
-209
-272
-307
-384
-378
-467
-386
-462
-555
-304
With Tax Increase
Pct of Tax
Avg Tax Increase
Units
10.0
13.9
21.4
27.5
30.4
41.9
50.3
65.3
75.0
97.0
98.8
33.7
39
48
68
90
112
164
224
426
3,939
21,220
171,099
2,512
Percent
Change in
After-Tax
Income 4
-0.1
0.0
0.1
0.1
0.1
0.0
-0.1
-0.2
-1.2
-3.9
-8.2
-1.4
Share of
Total
Federal Tax
Change
0.1
-0.1
-0.3
-0.3
-0.2
0.1
0.5
3.4
12.4
16.0
68.3
100.0
Average
Federal Tax
Change ($)
3
-5
-17
-22
-24
3
44
211
2,669
19,943
167,125
786
Average Federal Tax Rate5
Change (%
Points)
Under the
Proposal
0.1
0.0
-0.1
-0.1
-0.1
0.0
0.1
0.2
0.9
2.9
5.5
1.1
2.7
1.8
7.0
11.4
14.2
16.9
19.0
21.7
25.3
29.5
38.4
21.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 4.5
Proposal: 5.1
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current policy. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than
$250,000 ($200,000 for singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits
the value of all itemized deductions and certain other tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for
inflation after 2009; taxes carried interest in investment partnerships as ordinary income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens
business tax base; and makes certain changes to international taxation. 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) 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.
27-Sep-11
PRELIMINARY RESULTS; UPDATED
http://www.taxpolicycenter.org
Table T11-0365
President Obama's Proposals for the Joint Committee
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
3.9
8.2
15.0
17.2
18.4
16.9
17.1
10.9
18.5
1.8
0.9
12.8
10.0
13.9
21.4
27.5
30.4
41.9
50.3
65.3
75.0
97.0
98.8
33.7
Percent Change
in After-Tax
Income 4
-0.1
0.0
0.1
0.1
0.1
0.0
-0.1
-0.2
-1.2
-3.9
-8.2
-1.4
Share of Total
Federal Tax
Change
0.1
-0.1
-0.3
-0.3
-0.2
0.1
0.5
3.4
12.4
16.0
68.3
100.0
Average Federal Tax Change
Dollars
3
-5
-17
-22
-24
3
44
211
2,669
19,943
167,125
786
Percent
2.0
-1.8
-0.9
-0.5
-0.4
0.0
0.3
0.7
3.7
10.7
16.8
5.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.2
-0.2
-0.5
-0.5
-1.1
-0.3
0.4
2.3
0.0
Under the
Proposal
0.1
0.3
1.4
2.7
3.3
9.3
9.5
24.2
17.2
8.2
23.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.1
0.0
-0.1
-0.1
-0.1
0.0
0.1
0.2
0.9
2.9
5.5
1.1
Under the
Proposal
2.7
1.8
7.0
11.4
14.2
16.9
19.0
21.7
25.3
29.5
38.4
21.8
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
997,916
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
221,250
510,411
2,034,451
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: 5.1
* Less than 0.05
(1) Calendar year. Baseline is current policy. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than $250,000 ($200,000 for
singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits the value of all itemized deductions and certain other
tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for inflation after 2009; taxes carried interest in investment partnerships as ordinary
income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens business tax base; and makes certain changes to international taxation. 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,
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) 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.
27-Sep-11
PRELIMINARY RESULTS; UPDATED
http://www.taxpolicycenter.org
Table T11-0365
President Obama's Proposals for the Joint Committee
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
4.5
8.8
13.6
12.4
13.4
9.4
8.2
7.6
5.7
0.3
0.3
9.2
9.3
15.2
27.1
33.3
34.6
46.6
55.5
66.1
90.3
97.5
99.7
27.6
Percent Change
in After-Tax
Income 4
0.0
0.1
0.0
0.0
0.0
-0.1
-0.2
-0.5
-2.6
-6.4
-10.5
-1.0
Share of Total
Federal Tax
Change
0.1
-0.6
-0.3
0.0
0.0
1.6
2.0
6.2
18.1
16.0
56.5
100.0
Average Federal Tax Change
Dollars
2
-8
-6
1
-1
49
145
473
5,856
31,457
197,883
319
Percent
0.6
-0.9
-0.2
0.0
0.0
0.4
0.7
1.4
7.6
15.6
18.5
4.1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.3
-0.3
-0.7
-0.4
-0.5
0.3
0.5
1.7
0.0
Under the
Proposal
0.8
2.5
5.4
7.4
7.9
17.6
11.5
17.5
10.1
4.7
14.4
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
-0.1
0.0
0.0
0.0
0.1
0.2
0.4
2.0
4.5
6.7
0.8
Under the
Proposal
5.8
5.6
11.3
14.7
18.7
21.0
23.6
24.7
27.6
33.5
43.0
20.6
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
1,071,090
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
37,399
49,360
67,684
103,438
222,264
494,612
1,881,182
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. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than $250,000 ($200,000 for
singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits the value of all itemized deductions and certain other
tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for inflation after 2009; taxes carried interest in investment partnerships as ordinary
income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens business tax base; and makes certain changes to international taxation. 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) 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.
27-Sep-11
PRELIMINARY RESULTS; UPDATED
http://www.taxpolicycenter.org
Table T11-0365
President Obama's Proposals for the Joint Committee
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
1.6
5.0
11.6
16.1
17.8
20.1
19.5
10.9
20.1
2.1
1.0
14.9
18.1
17.5
21.0
31.3
33.7
43.3
50.8
66.4
73.0
96.9
98.7
50.7
Percent Change
in After-Tax
Income 4
-0.2
-0.1
0.0
0.1
0.0
0.0
0.0
-0.2
-1.0
-3.6
-7.8
-1.7
Share of Total
Federal Tax
Change
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.2
2.7
11.0
16.2
69.9
100.0
Average Federal Tax Change
Dollars
11
11
-3
-19
-11
-7
22
163
2,154
18,237
158,412
1,724
Percent
-20.0
-2.9
-1.4
-0.9
-0.3
-0.1
0.1
0.6
3.1
10.0
16.4
5.9
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.3
-0.5
-1.5
-0.6
0.4
2.5
0.0
Under the
Proposal
0.0
-0.1
0.0
0.5
1.0
4.9
8.1
27.2
20.7
10.0
27.6
100.0
Average Federal Tax Rate5
Change (%
Points)
0.2
0.1
0.0
-0.1
0.0
0.0
0.0
0.1
0.7
2.6
5.3
1.3
Under the
Proposal
-0.9
-2.3
0.9
6.1
8.6
13.4
17.1
21.0
24.9
28.9
37.6
23.3
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
70,526
183,268
964,056
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
221,283
513,129
2,024,264
103,531
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. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than $250,000 ($200,000 for
singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits the value of all itemized deductions and certain other
tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for inflation after 2009; taxes carried interest in investment partnerships as ordinary
income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens business tax base; and makes certain changes to international taxation. 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) 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.
27-Sep-11
PRELIMINARY RESULTS; UPDATED
http://www.taxpolicycenter.org
Table T11-0365
President Obama's Proposals for the Joint Committee
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
1.3
7.2
20.6
30.5
32.1
27.7
25.1
20.3
37.3
0.7
0.2
19.3
10.1
7.6
7.2
10.4
16.4
26.0
35.0
44.1
53.5
96.4
99.3
14.7
Percent Change
in After-Tax
Income 4
-0.1
0.0
0.2
0.3
0.3
0.2
0.1
0.0
-1.0
-3.5
-8.4
-0.1
Share of Total
Federal Tax
Change
1.4
-1.3
-20.0
-24.7
-20.7
-23.7
-7.9
3.0
25.3
32.4
135.6
100.0
Average Federal Tax Change
Dollars
6
-3
-52
-83
-104
-90
-74
42
2,145
17,262
158,507
50
Percent
-0.8
0.2
32.9
-2.9
-1.7
-0.9
-0.4
0.1
3.0
9.8
16.4
1.0
Share of Federal Taxes
Change (%
Points)
0.0
0.1
-0.2
-0.3
-0.3
-0.5
-0.3
-0.2
0.2
0.3
1.3
0.0
Under the
Proposal
-1.8
-6.4
-0.8
8.3
11.7
27.1
18.4
21.7
8.6
3.6
9.6
100.0
Average Federal Tax Rate5
Change (%
Points)
0.1
0.0
-0.2
-0.2
-0.2
-0.1
-0.1
0.0
0.8
2.6
5.5
0.1
Under the
Proposal
-11.8
-9.9
-0.8
7.8
12.9
16.6
19.6
23.0
25.3
28.5
39.3
12.6
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
965,297
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
1,894,601
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. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than $250,000 ($200,000 for
singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits the value of all itemized deductions and certain other
tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for inflation after 2009; taxes carried interest in investment partnerships as ordinary
income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens business tax base; and makes certain changes to international taxation. 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) 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.
27-Sep-11
PRELIMINARY RESULTS; UPDATED
http://www.taxpolicycenter.org
Table T11-0365
President Obama's Proposals for the Joint Committee
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
0.8
6.1
19.7
29.6
31.7
29.5
28.8
15.0
28.6
2.4
0.6
20.6
8.6
8.2
7.6
11.5
15.6
26.2
36.7
58.2
64.3
96.4
99.3
28.9
Percent Change
in After-Tax
Income 4
-0.1
0.0
0.2
0.2
0.2
0.2
0.1
-0.1
-1.0
-3.9
-8.3
-1.3
Share of Total
Federal Tax
Change
0.1
0.0
-0.5
-0.8
-0.8
-1.3
-0.6
1.8
12.6
18.6
70.8
100.0
Average Federal Tax Change
Dollars
7
1
-45
-79
-92
-80
-47
92
2,161
19,508
162,317
957
Percent
-0.7
0.0
4.2
-3.9
-1.8
-0.8
-0.3
0.3
3.0
10.1
16.6
5.1
Share of Federal Taxes
Change (%
Points)
0.0
0.1
0.0
-0.1
-0.1
-0.4
-0.5
-1.3
-0.4
0.5
2.4
0.0
Under the
Proposal
-0.4
-1.4
-0.6
1.0
2.0
7.2
9.5
28.0
20.8
9.7
24.0
100.0
Average Federal Tax Rate5
Change (%
Points)
0.1
0.0
-0.2
-0.2
-0.2
-0.1
-0.1
0.1
0.7
2.8
5.5
1.0
Under the
Proposal
-17.4
-15.6
-4.4
5.4
10.7
15.1
17.9
21.2
25.6
30.5
38.8
21.3
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
29,724
71,960
192,520
979,993
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
218,183
503,143
1,963,218
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. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than $250,000 ($200,000 for
singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits the value of all itemized deductions and certain other
tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for inflation after 2009; taxes carried interest in investment partnerships as ordinary
income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens business tax base; and makes certain changes to international taxation. 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,
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) 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.
27-Sep-11
PRELIMINARY RESULTS; UPDATED
http://www.taxpolicycenter.org
Table T11-0365
President Obama's Proposals for the Joint Committee
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
0.1
0.3
1.3
3.1
5.6
6.5
5.1
6.1
5.7
1.2
0.5
3.2
12.6
21.2
48.6
62.4
60.8
73.8
80.6
85.1
91.6
97.2
99.2
53.6
Percent Change
in After-Tax
Income 4
0.0
0.0
-0.1
-0.1
-0.2
-0.3
-0.3
-0.6
-1.9
-4.7
-9.2
-1.8
Share of Total
Federal Tax
Change
0.0
0.1
0.3
0.5
0.5
1.8
2.0
6.0
14.1
14.4
60.1
100.0
Average Federal Tax Change
Dollars
3
7
28
48
68
140
257
628
4,407
24,088
185,758
1,082
Percent
4.3
4.7
4.1
2.8
2.5
2.3
2.2
2.5
6.6
13.0
17.7
8.9
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
-0.1
-0.1
-0.4
-0.5
-1.3
-0.4
0.4
2.4
0.0
Under the
Proposal
0.0
0.3
0.7
1.4
1.6
6.8
7.6
20.1
18.7
10.2
32.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.1
0.1
0.2
0.2
0.3
0.5
1.5
3.5
6.0
1.5
Under the
Proposal
0.9
1.0
2.8
5.0
6.1
10.1
13.6
18.2
23.8
29.9
40.1
18.6
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
1,050,093
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
30.2
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
513,485
2,030,974
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. Proposal: repeals certain provisions in the 2001 and 2003 individual income tax cuts for married taxpayers with incomes greater than $250,000 ($200,000 for
singles), indexed for inflation after 2009, as proposed in Administration's FY2012 budget; reinstates 2009 estate tax rate and exemption, unindexed; limits the value of all itemized deductions and certain other
tax expenditures to 28 percent for married taxpayers with AGI greater than $250,000 ($200,000 for singles), indexed for inflation after 2009; taxes carried interest in investment partnerships as ordinary
income; closes loopholes for corporate jet depreciation; repeals oil and gas subsidies; broadens business tax base; and makes certain changes to international taxation. 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,
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) 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.