29-May-09
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 T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017
Summary Table
Cash Income Level
(thousands of 2009
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 Cut
65.3
65.2
74.3
86.8
91.9
96.0
99.3
99.6
98.9
79.4
68.2
84.9
With Tax
Increase
0.0
0.3
0.2
0.2
0.0
0.1
0.0
0.0
0.9
20.0
31.5
0.4
Percent Change
in After-Tax
Income 4
6.0
4.0
4.0
4.0
3.8
3.7
4.2
4.6
4.0
1.6
1.6
3.7
1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1.2
3.7
5.3
5.4
4.8
11.2
11.3
31.3
17.4
2.7
5.5
100.0
-329
-640
-1,012
-1,328
-1,569
-2,052
-3,155
-5,302
-9,151
-8,970
-35,111
-2,538
Average Federal Tax Rate5
Change (%
Points)
-5.6
-3.8
-3.7
-3.4
-3.1
-3.0
-3.3
-3.5
-2.9
-1.2
-1.1
-2.8
Under the
Proposal
0.6
1.4
6.0
10.6
13.7
16.7
18.6
21.3
24.4
27.0
30.9
20.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 28.0
Proposal: 5.5
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out
thesholds for inflation after 2010; (b) extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the
saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e) extend
the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000
less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for
single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI
(married) and $200,000 (single), indexed for inflation after 2009;
(i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets
held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts
for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for
taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care 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) 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
65.3
65.2
74.3
86.8
91.9
96.0
99.3
99.6
98.9
79.4
68.2
84.9
0.0
0.3
0.2
0.2
0.0
0.1
0.0
0.0
0.9
20.0
31.5
0.4
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
6.0
4.0
4.0
4.0
3.8
3.7
4.2
4.6
4.0
1.6
1.6
3.7
1.2
3.7
5.3
5.4
4.8
11.2
11.3
31.3
17.4
2.7
5.5
100.0
Average Federal Tax Change
Dollars
Percent
-329
-640
-1,012
-1,328
-1,569
-2,052
-3,155
-5,302
-9,151
-8,970
-35,111
-2,538
-90.1
-73.5
-37.9
-24.5
-18.6
-15.2
-14.9
-14.1
-10.7
-4.2
-3.4
-12.0
Share of Federal Taxes
Change (%
Points)
-0.2
-0.4
-0.5
-0.4
-0.2
-0.3
-0.3
-0.6
0.3
0.7
1.9
0.0
Under the
Proposal
0.0
0.2
1.2
2.3
2.9
8.6
8.8
26.2
19.9
8.3
21.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.6
-3.8
-3.7
-3.4
-3.1
-3.0
-3.3
-3.5
-2.9
-1.2
-1.1
-2.8
Under the
Proposal
0.6
1.4
6.0
10.6
13.7
16.7
18.6
21.3
24.4
27.0
30.9
20.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
Cash Income Level
(thousands of 2009
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)
16,000
24,432
22,456
17,395
13,160
23,374
15,256
25,181
8,112
1,263
670
168,027
Percent of Total
9.5
14.5
13.4
10.4
7.8
13.9
9.1
15.0
4.8
0.8
0.4
100.0
Average
Income
(Dollars)
5,837
16,754
27,751
38,878
50,046
68,766
96,850
152,523
314,635
759,050
3,231,782
89,404
Average
Federal Tax
Burden
(Dollars)
365
871
2,671
5,433
8,426
13,509
21,201
37,743
85,778
213,725
1,032,553
21,091
Average AfterTax Income 4
(Dollars)
5,472
15,883
25,081
33,445
41,620
55,257
75,649
114,780
228,857
545,325
2,199,229
68,313
Average
Federal Tax
Rate 5
6.3
5.2
9.6
14.0
16.8
19.6
21.9
24.8
27.3
28.2
32.0
23.6
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.6
2.7
4.2
4.5
4.4
10.7
9.8
25.6
17.0
6.4
14.4
100.0
0.8
3.4
4.9
5.1
4.8
11.3
10.1
25.2
16.2
6.0
12.8
100.0
0.2
0.6
1.7
2.7
3.1
8.9
9.1
26.8
19.6
7.6
19.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 28.0
Proposal: 5.5
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters;
(l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care 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) 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
65.2
58.5
66.9
85.7
95.9
98.8
99.3
99.2
96.9
82.0
70.2
77.9
0.0
0.5
0.2
0.1
0.0
0.0
0.0
0.0
2.6
17.6
29.2
0.3
Percent Change
in After-Tax
Income 4
5.3
2.8
2.6
2.6
2.8
3.0
4.0
4.2
5.1
3.9
2.2
3.4
Share of Total
Federal Tax
Change
3.2
6.5
8.0
7.3
6.7
15.2
13.2
20.1
12.0
3.4
4.2
100.0
Average Federal Tax Change
Dollars
Percent
-282
-427
-633
-855
-1,118
-1,571
-2,801
-4,485
-11,453
-20,043
-45,714
-1,346
-54.2
-30.6
-19.1
-13.5
-11.4
-9.9
-11.3
-11.1
-12.6
-8.9
-4.2
-11.5
Share of Federal Taxes
Change (%
Points)
-0.3
-0.5
-0.4
-0.1
0.0
0.3
0.0
0.1
-0.1
0.1
1.0
0.0
Under the
Proposal
0.4
1.9
4.4
6.1
6.8
18.0
13.5
20.9
10.9
4.6
12.4
100.0
Average Federal Tax Rate5
Change (%
Points)
-4.8
-2.6
-2.3
-2.2
-2.2
-2.3
-2.9
-3.0
-3.6
-2.7
-1.5
-2.6
Under the
Proposal
4.1
5.8
9.7
14.1
17.5
21.0
23.0
24.1
25.1
27.6
33.2
20.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
Cash Income Level
(thousands of 2009
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
11,563
15,502
12,950
8,694
6,099
9,865
4,817
4,580
1,072
174
93
75,772
15.3
20.5
17.1
11.5
8.1
13.0
6.4
6.0
1.4
0.2
0.1
100.0
Average
Income
(Dollars)
5,853
16,653
27,626
38,753
50,008
68,138
95,751
148,129
317,350
744,198
3,141,841
51,323
Average
Federal Tax
Burden
(Dollars)
520
1,394
3,305
6,326
9,849
15,886
24,772
40,247
91,020
225,504
1,087,503
11,682
Average AfterTax Income 4
(Dollars)
5,333
15,259
24,321
32,427
40,159
52,252
70,979
107,882
226,330
518,694
2,054,339
39,641
Average
Federal Tax
Rate 5
8.9
8.4
12.0
16.3
19.7
23.3
25.9
27.2
28.7
30.3
34.6
22.8
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
1.7
6.6
9.2
8.7
7.8
17.3
11.9
17.4
8.8
3.3
7.5
100.0
2.1
7.9
10.5
9.4
8.2
17.2
11.4
16.5
8.1
3.0
6.4
100.0
0.7
2.4
4.8
6.2
6.8
17.7
13.5
20.8
11.0
4.4
11.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters;
(l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care 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) 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
48.1
65.3
75.6
78.8
80.6
91.4
99.2
99.7
99.4
79.7
68.3
89.8
0.0
0.1
0.3
0.4
0.1
0.1
0.1
0.0
0.4
19.6
31.5
0.7
Percent Change
in After-Tax
Income 4
6.6
5.4
5.7
5.2
4.4
3.9
4.3
4.8
3.9
1.3
1.5
3.7
Share of Total
Federal Tax
Change
0.2
1.1
2.5
2.9
2.8
7.6
10.5
40.0
22.6
2.9
6.9
100.0
Average Federal Tax Change
Dollars
Percent
-298
-887
-1,493
-1,823
-1,951
-2,329
-3,368
-5,630
-8,915
-7,317
-33,243
-4,270
-90.0
-125.3
-75.1
-46.2
-32.8
-21.9
-17.9
-15.1
-10.5
-3.5
-3.3
-11.3
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.3
-0.3
-0.2
-0.5
-0.5
-1.3
0.2
0.8
2.1
0.0
Under the
Proposal
0.0
0.0
0.1
0.4
0.7
3.5
6.2
28.6
24.6
10.2
25.6
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.1
-5.1
-5.3
-4.7
-3.9
-3.3
-3.5
-3.7
-2.8
-1.0
-1.0
-2.8
Under the
Proposal
0.7
-1.0
1.8
5.4
8.0
11.9
15.9
20.5
24.2
26.9
30.4
21.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
Cash Income Level
(thousands of 2009
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
2,074
3,301
4,500
4,187
3,878
8,722
8,317
18,981
6,785
1,044
551
62,623
3.3
5.3
7.2
6.7
6.2
13.9
13.3
30.3
10.8
1.7
0.9
100.0
Average
Income
(Dollars)
4,875
17,259
28,008
39,068
50,194
69,670
97,674
154,413
313,960
761,886
3,195,340
152,719
Average
Federal Tax
Burden
(Dollars)
332
708
1,988
3,946
5,949
10,627
18,867
37,222
84,952
212,350
1,006,027
37,733
Average AfterTax Income 4
(Dollars)
4,543
16,551
26,020
35,122
44,244
59,043
78,807
117,190
229,008
549,536
2,189,313
114,985
Average
Federal Tax
Rate 5
6.8
4.1
7.1
10.1
11.9
15.3
19.3
24.1
27.1
27.9
31.5
24.7
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.1
0.6
1.3
1.7
2.0
6.4
8.5
30.7
22.3
8.3
18.4
100.0
0.1
0.8
1.6
2.0
2.4
7.2
9.1
30.9
21.6
8.0
16.8
100.0
0.0
0.1
0.4
0.7
1.0
3.9
6.6
29.9
24.4
9.4
23.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters;
(l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care 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) 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
81.0
82.7
91.8
96.4
97.8
98.7
99.7
98.9
94.3
63.2
58.8
92.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.3
36.7
41.1
0.1
Percent Change
in After-Tax
Income 4
8.5
6.3
6.0
5.4
4.8
4.6
4.2
3.5
2.4
0.8
1.3
4.7
Share of Total
Federal Tax
Change
2.6
11.5
14.7
15.1
11.0
21.0
11.0
9.9
2.2
0.3
0.8
100.0
Average Federal Tax Change
Dollars
Percent
-603
-1,097
-1,589
-1,818
-1,997
-2,528
-3,104
-3,690
-5,704
-4,685
-27,624
-1,887
143.2
178.3
-112.4
-36.9
-23.8
-18.8
-14.3
-10.2
-6.8
-2.4
-2.7
-22.3
Share of Federal Taxes
Change (%
Points)
-0.9
-3.7
-3.4
-1.7
-0.2
1.1
1.7
3.4
1.4
0.7
1.5
0.0
Under the
Proposal
-1.3
-5.1
-0.5
7.4
10.1
26.0
18.8
24.9
8.6
3.4
7.7
100.0
Average Federal Tax Rate5
Change (%
Points)
-9.1
-6.6
-5.7
-4.7
-4.0
-3.7
-3.2
-2.6
-1.8
-0.6
-0.9
-3.9
Under the
Proposal
-15.4
-10.2
-0.6
8.0
12.8
16.1
19.4
22.8
24.5
25.1
31.7
13.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
Cash Income Level
(thousands of 2009
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
2,245
5,382
4,732
4,249
2,835
4,249
1,813
1,372
197
33
14
27,175
8.3
19.8
17.4
15.6
10.4
15.6
6.7
5.1
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
6,658
16,742
27,809
38,937
49,870
68,240
95,879
142,970
318,955
750,220
3,120,554
49,021
Average
Federal Tax
Burden
(Dollars)
-421
-615
1,414
4,924
8,385
13,483
21,680
36,244
83,850
192,808
1,016,620
8,483
Average AfterTax Income 4
(Dollars)
7,080
17,357
26,395
34,013
41,485
54,757
74,198
106,726
235,105
557,412
2,103,934
40,539
Average
Federal Tax
Rate 5
-6.3
-3.7
5.1
12.7
16.8
19.8
22.6
25.4
26.3
25.7
32.6
17.3
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
1.1
6.8
9.9
12.4
10.6
21.8
13.1
14.7
4.7
1.8
3.3
100.0
1.4
8.5
11.3
13.1
10.7
21.1
12.2
13.3
4.2
1.7
2.7
100.0
-0.4
-1.4
2.9
9.1
10.3
24.9
17.1
21.6
7.2
2.7
6.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters;
(l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care 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) 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Tax Units with Children
Percent of Tax Units 3
Cash Income Level
(thousands of 2009
dollars) 2
With Tax Cut
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
80.7
95.3
97.9
99.1
99.3
99.7
99.9
100.0
99.2
73.3
58.2
97.5
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.7
26.6
41.6
0.5
Percent Change
in After-Tax
Income 4
9.4
8.0
8.1
7.0
6.3
5.4
5.3
5.4
3.9
0.9
1.1
4.6
Share of Total
Federal Tax
Change
0.9
3.9
6.0
6.1
5.1
11.5
11.4
34.4
16.5
1.3
3.0
100.0
Average Federal Tax Change
Dollars
Percent
-657
-1,452
-2,164
-2,414
-2,634
-3,052
-4,034
-6,193
-8,794
-4,745
-22,988
-3,893
100.5
114.4
-209.0
-51.6
-32.5
-23.6
-19.5
-16.2
-10.1
-2.1
-2.2
-14.2
Share of Federal Taxes
Change (%
Points)
-0.2
-0.7
-0.9
-0.7
-0.5
-0.8
-0.5
-0.7
1.1
1.2
2.7
0.0
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.3
-1.2
-0.5
0.9
1.8
6.1
7.7
29.4
24.3
9.8
21.9
100.0
-10.3
-8.6
-7.8
-6.2
-5.3
-4.4
-4.1
-4.0
-2.8
-0.6
-0.7
-3.4
-20.6
-16.1
-4.1
5.8
11.0
14.4
17.1
20.9
25.0
29.0
32.5
20.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
Cash Income Level
(thousands of 2009
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
2,575
5,305
5,512
4,988
3,825
7,434
5,566
10,981
3,723
534
254
50,838
5.1
10.4
10.8
9.8
7.5
14.6
11.0
21.6
7.3
1.1
0.5
100.0
Average
Income
(Dollars)
6,368
16,859
27,793
38,974
50,034
69,037
97,327
153,420
312,848
758,319
3,186,906
113,062
Average
Federal Tax
Burden
(Dollars)
-654
-1,270
1,036
4,680
8,115
12,958
20,705
38,315
87,066
224,656
1,057,321
27,494
Average AfterTax Income 4
(Dollars)
7,022
18,128
26,757
34,294
41,920
56,079
76,622
115,105
225,782
533,662
2,129,585
85,567
Average
Federal Tax
Rate 5
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-10.3
-7.5
3.7
12.0
16.2
18.8
21.3
25.0
27.8
29.6
33.2
24.3
0.3
1.6
2.7
3.4
3.3
8.9
9.4
29.3
20.3
7.0
14.1
100.0
0.4
2.2
3.4
3.9
3.7
9.6
9.8
29.1
19.3
6.6
12.4
100.0
-0.1
-0.5
0.4
1.7
2.2
6.9
8.2
30.1
23.2
8.6
19.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
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 would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters;
(l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care 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) 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0290
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
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 Cut
With Tax
Increase
15.4
19.9
33.6
55.9
67.0
81.5
97.6
98.6
98.6
90.2
81.1
56.9
0.0
0.1
0.1
0.2
0.0
0.1
0.0
0.1
0.5
7.3
18.5
0.3
Percent Change
in After-Tax
Income 4
0.9
0.7
0.9
1.5
2.2
2.3
4.3
4.6
5.4
3.6
2.6
3.3
Share of Total
Federal Tax
Change
0.1
1.0
1.8
2.7
3.1
7.2
12.1
28.5
23.7
7.0
12.6
100.0
Average Federal Tax Change
Dollars
Percent
-51
-122
-226
-538
-1,001
-1,455
-3,455
-5,566
-13,064
-20,233
-59,128
-2,332
-25.8
-29.8
-22.5
-23.4
-27.4
-19.9
-22.1
-18.1
-16.1
-9.9
-5.7
-13.8
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.2
-0.3
-0.4
-0.7
-1.1
-0.5
0.5
2.9
0.0
Under the
Proposal
0.1
0.4
1.0
1.4
1.3
4.6
6.8
20.7
19.8
10.3
33.6
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.8
-0.7
-0.8
-1.4
-2.0
-2.1
-3.6
-3.7
-4.1
-2.6
-1.8
-2.7
Under the
Proposal
2.4
1.7
2.8
4.6
5.3
8.4
12.6
16.6
21.2
24.2
30.0
16.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2017 1
Cash Income Level
(thousands of 2009
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
2,070
6,680
6,674
4,077
2,564
4,073
2,877
4,202
1,489
285
175
35,193
5.9
19.0
19.0
11.6
7.3
11.6
8.2
11.9
4.2
0.8
0.5
100.0
Average
Income
(Dollars)
6,166
17,135
27,542
38,630
49,862
69,426
96,871
152,477
322,237
765,472
3,283,902
87,173
Average
Federal Tax
Burden
(Dollars)
198
409
1,005
2,296
3,652
7,302
15,640
30,833
81,298
205,461
1,045,317
16,928
Average AfterTax Income 4
(Dollars)
5,968
16,726
26,537
36,334
46,210
62,125
81,231
121,644
240,939
560,011
2,238,584
70,246
Average
Federal Tax
Rate 5
3.2
2.4
3.7
5.9
7.3
10.5
16.2
20.2
25.2
26.8
31.8
19.4
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.4
3.7
6.0
5.1
4.2
9.2
9.1
20.9
15.6
7.1
18.7
100.0
0.5
4.5
7.2
6.0
4.8
10.2
9.5
20.7
14.5
6.5
15.8
100.0
0.1
0.5
1.1
1.6
1.6
5.0
7.6
21.8
20.3
9.8
30.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
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 would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years; (j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters;
(l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care 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) 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.