12-Jan-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0008
Distribution of Federal Tax Benefits of the CTC, CDCTC and EITC
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2011 1
Percent of Tax Units 4
Cash Income Percentile 2,3
Without
Benefit
With Benefit
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Benefit as
Percent of AfterTax Income 5
Average Benefit
Share of Total
Benefits
Dollars
Share of Federal Taxes
Percent of
Tax
With Credit
Without
Credit
Average Federal Tax Rate6
With Credit
Without
Credit
24.5
30.2
28.9
31.4
21.6
27.3
75.6
69.8
71.1
68.6
78.4
72.7
5.5
5.3
1.8
0.9
0.2
1.3
19.3
39.9
20.6
13.9
6.0
100.0
499
1,223
718
587
293
690
652.4
86.2
12.9
4.5
0.5
5.8
0.2
2.7
9.3
18.2
69.5
100.0
1.2
4.7
9.9
17.9
66.0
100.0
0.8
5.8
12.5
16.6
23.1
18.1
6.3
10.7
14.1
17.3
23.2
19.2
31.6
15.4
8.0
4.6
2.1
68.4
84.6
92.0
95.4
97.9
0.5
0.1
0.0
0.0
0.0
5.2
0.6
0.2
0.0
0.0
494
122
57
35
18
2.0
0.3
0.1
0.0
0.0
15.1
11.3
17.5
25.6
13.1
14.6
10.7
16.6
24.2
12.4
19.2
21.1
23.0
27.6
30.8
19.5
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
by Cash Income Percentile, 2011 1
Tax Units 4
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
Federal Tax Burden
After-Tax Income 5
2,3
Number
(thousands)
Percent of
Total
Average (dollars)
Percent of
Total
Average
(dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
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
3.8
8.5
13.5
19.9
54.6
100.0
77
1,420
5,592
13,168
58,040
11,841
0.2
2.7
9.3
18.2
69.5
100.0
9,111
23,183
39,047
66,356
193,707
53,516
4.5
9.7
14.4
20.3
51.3
100.0
0.8
5.8
12.5
16.6
23.1
18.1
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
14.3
9.7
13.8
16.8
7.7
24,948
38,713
73,520
422,727
2,113,515
15.1
11.3
17.5
25.6
13.1
105,329
145,044
246,566
1,108,046
4,746,357
14.1
9.4
13.0
14.8
6.5
19.2
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 0411-2).
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 Child Tax Credit, Child and Dependent Care Tax Credit, and Earned Income Tax Credit.
(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.