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 T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2017
Summary Table
Percent of Tax Units 4
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 ($)
1
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
68.0
80.5
94.2
99.3
97.5
84.9
0.2
0.2
0.1
0.0
2.2
0.4
4.3
4.0
3.7
4.4
3.3
3.7
5.3
10.3
14.5
23.9
45.9
100.0
-553
-1,167
-1,821
-3,581
-7,931
-2,538
-4.1
-3.5
-3.0
-3.4
-2.4
-2.8
1.4
8.6
15.6
19.1
25.7
20.8
99.7
99.6
95.7
72.5
64.4
0.0
0.0
3.9
27.2
35.4
4.6
4.6
3.2
1.6
1.8
16.7
11.3
11.1
6.9
3.3
-5,731
-7,911
-9,577
-23,342
-111,114
-3.5
-3.4
-2.3
-1.1
-1.2
21.8
23.1
25.4
30.1
32.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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 2009 dollars): 20% $20,846, 40% $39,988, 60% $71,590, 80% $124,539, 90% $180,564, 95% $252,295, 99% $660,987, 99.9% $3,049,618.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2017
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
68.0
80.5
94.2
99.3
97.5
84.9
0.2
0.2
0.1
0.0
2.2
0.4
4.3
4.0
3.7
4.4
3.3
3.7
5.3
10.3
14.5
23.9
45.9
100.0
-553
-1,167
-1,821
-3,581
-7,931
-2,538
-74.1
-29.2
-16.2
-15.0
-8.5
-12.0
-0.6
-0.8
-0.5
-0.7
2.6
0.0
0.3
3.4
10.3
18.5
67.5
100.0
-4.1
-3.5
-3.0
-3.4
-2.4
-2.8
1.4
8.6
15.6
19.1
25.7
20.8
99.7
99.6
95.7
72.5
64.4
0.0
0.0
3.9
27.2
35.4
4.6
4.6
3.2
1.6
1.8
16.7
11.3
11.1
6.9
3.3
-5,731
-7,911
-9,577
-23,342
-111,114
-13.7
-12.7
-8.4
-3.5
-3.5
-0.3
-0.1
0.7
2.3
1.1
14.4
10.6
16.5
26.0
12.6
-3.5
-3.4
-2.3
-1.1
-1.2
21.8
23.1
25.4
30.1
32.4
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
40,705
37,758
33,915
28,437
24,688
168,027
24.2
22.5
20.2
16.9
14.7
100.0
13,512
33,137
60,464
105,717
332,349
89,404
747
4,000
11,239
23,810
93,169
21,091
12,765
29,138
49,224
81,908
239,180
68,313
5.5
12.1
18.6
22.5
28.0
23.6
3.7
8.3
13.7
20.0
54.6
100.0
4.5
9.6
14.5
20.3
51.4
100.0
0.9
4.3
10.8
19.1
64.9
100.0
12,437
6,069
4,926
1,257
128
7.4
3.6
2.9
0.8
0.1
165,657
235,719
410,513
2,141,178
9,468,938
41,847
62,244
114,015
668,358
3,182,923
123,811
173,475
296,498
1,472,820
6,286,015
25.3
26.4
27.8
31.2
33.6
13.7
9.5
13.5
17.9
8.1
13.4
9.2
12.7
16.1
7.0
14.7
10.7
15.9
23.7
11.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $20,846,
40% $39,988, 60% $71,590, 80% $124,539, 90% $180,564, 95% $252,295, 99% $660,987, 99.9% $3,049,618.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
73.2
73.8
88.4
98.6
97.9
84.9
0.0
0.3
0.1
0.0
1.7
0.4
6.1
4.5
3.8
4.2
3.2
3.7
5.9
9.8
13.3
22.1
48.7
100.0
-754
-1,192
-1,686
-2,992
-6,554
-2,538
-184.4
-35.5
-18.8
-14.7
-8.4
-12.0
-0.8
-0.9
-0.7
-0.6
2.9
0.0
-0.4
2.4
7.9
17.6
72.4
100.0
-5.9
-4.0
-3.2
-3.2
-2.3
-2.8
-2.7
7.2
13.7
18.8
25.5
20.8
99.6
99.5
96.8
75.7
65.6
0.0
0.0
2.8
23.6
34.1
4.2
4.2
3.4
1.7
1.8
16.6
11.4
12.7
7.9
3.6
-4,451
-6,132
-8,609
-22,274
-101,320
-12.6
-11.6
-8.9
-3.9
-3.6
-0.1
0.1
0.6
2.3
1.2
15.7
11.9
17.8
27.0
13.2
-3.2
-3.1
-2.5
-1.2
-1.2
21.9
23.3
25.2
29.7
32.3
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
33,450
35,074
33,747
31,556
31,677
168,027
19.9
20.9
20.1
18.8
18.9
100.0
12,732
30,173
53,321
92,353
279,871
89,404
409
3,361
8,968
20,325
77,795
21,091
12,323
26,812
44,353
72,029
202,077
68,313
3.2
11.1
16.8
22.0
27.8
23.6
2.8
7.0
12.0
19.4
59.0
100.0
3.6
8.2
13.0
19.8
55.8
100.0
0.4
3.3
8.5
18.1
69.5
100.0
15,914
7,953
6,289
1,520
151
9.5
4.7
3.7
0.9
0.1
140,958
200,752
349,936
1,857,869
8,388,125
35,272
52,899
96,712
574,843
2,811,223
105,686
147,854
253,224
1,283,026
5,576,902
25.0
26.4
27.6
30.9
33.5
14.9
10.6
14.7
18.8
8.5
14.7
10.2
13.9
17.0
7.4
15.8
11.9
17.2
24.7
12.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Single Tax Units
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
68.0
61.0
85.4
98.6
98.5
77.9
0.0
0.5
0.1
0.0
0.8
0.3
4.1
2.6
2.5
3.1
4.0
3.4
6.6
9.4
13.0
19.0
51.9
100.0
-373
-542
-839
-1,566
-5,157
-1,346
-49.1
-21.7
-12.5
-10.2
-10.0
-11.5
-0.7
-0.6
-0.1
0.3
1.1
0.0
0.9
4.4
11.8
21.7
61.1
100.0
-3.8
-2.3
-2.1
-2.4
-2.8
-2.6
3.9
8.4
14.7
20.7
25.7
20.1
99.4
99.3
98.2
82.0
65.9
0.0
0.0
0.9
17.5
33.6
3.8
4.0
5.1
3.0
2.0
15.3
10.3
16.7
9.5
2.6
-2,866
-4,169
-8,994
-25,105
-78,546
-10.8
-10.7
-13.1
-6.1
-3.6
0.1
0.1
-0.3
1.1
0.8
16.4
11.3
14.4
19.0
9.2
-2.8
-2.9
-3.7
-2.0
-1.3
23.3
24.3
24.3
30.9
35.2
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
17,946
17,740
15,791
12,368
10,255
75,772
23.7
23.4
20.8
16.3
13.5
100.0
9,849
23,350
39,855
66,353
181,320
51,323
758
2,497
6,686
15,320
51,805
11,682
9,091
20,853
33,169
51,033
129,515
39,641
5,447
2,527
1,895
386
34
7.2
3.3
2.5
0.5
0.0
101,176
143,504
245,016
1,246,622
6,069,456
26,484
39,048
68,565
410,182
2,211,723
74,692
104,456
176,451
836,441
3,857,733
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.7
10.7
16.8
23.1
28.6
22.8
4.5
10.7
16.2
21.1
47.8
100.0
5.4
12.3
17.4
21.0
44.2
100.0
1.5
5.0
11.9
21.4
60.0
100.0
26.2
27.2
28.0
32.9
36.4
14.2
9.3
11.9
12.4
5.3
13.5
8.8
11.1
10.8
4.3
16.3
11.2
14.7
17.9
8.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
70.6
79.7
87.7
98.4
97.6
89.8
0.0
0.3
0.1
0.0
2.1
0.7
7.8
5.6
4.4
4.7
3.1
3.7
3.1
6.3
11.3
24.4
54.9
100.0
-1,262
-1,919
-2,575
-4,234
-7,494
-4,270
-169.9
-43.5
-23.3
-17.4
-8.1
-11.3
-0.4
-0.6
-0.7
-1.1
2.8
0.0
-0.2
1.0
4.7
14.8
79.5
100.0
-7.5
-4.9
-3.7
-3.7
-2.2
-2.8
-3.1
6.4
12.3
17.6
25.3
21.9
99.7
99.7
96.4
74.2
65.9
0.0
0.0
3.3
25.0
34.0
4.4
4.2
3.0
1.5
1.8
19.3
13.7
13.4
8.6
4.5
-5,526
-7,208
-8,665
-21,536
-110,179
-13.6
-12.0
-7.8
-3.4
-3.7
-0.4
-0.1
0.8
2.5
1.2
15.7
12.8
20.1
31.0
14.9
-3.3
-3.1
-2.2
-1.0
-1.2
21.2
22.9
25.5
29.5
31.7
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,484
8,750
11,696
15,376
19,603
62,623
10.4
14.0
18.7
24.6
31.3
100.0
16,852
38,883
69,198
114,228
335,346
152,719
743
4,410
11,056
24,365
92,481
37,733
16,109
34,473
58,142
89,863
242,865
114,985
9,331
5,082
4,122
1,068
109
14.9
8.1
6.6
1.7
0.2
165,784
230,762
400,541
2,063,034
9,022,743
40,693
60,142
110,587
629,014
2,971,911
125,091
170,620
289,954
1,434,020
6,050,832
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
4.4
11.3
16.0
21.3
27.6
24.7
1.1
3.6
8.5
18.4
68.7
100.0
1.5
4.2
9.4
19.2
66.1
100.0
0.2
1.6
5.5
15.9
76.7
100.0
24.6
26.1
27.6
30.5
32.9
16.2
12.3
17.3
23.0
10.3
16.2
12.0
16.6
21.3
9.1
16.1
12.9
19.3
28.4
13.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Head of Household Tax Units
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
85.4
93.9
97.2
99.2
97.0
92.3
0.0
0.0
0.0
0.0
2.1
0.1
7.2
5.7
4.6
3.7
2.6
4.7
19.9
29.1
24.3
16.2
10.4
100.0
-1,166
-1,816
-2,211
-2,654
-4,062
-1,887
200.7
-45.2
-20.3
-12.8
-7.0
-22.3
-6.3
-4.2
0.7
3.4
6.5
0.0
-8.6
10.1
27.3
31.5
39.6
100.0
-7.5
-5.1
-3.8
-2.9
-1.9
-3.9
-11.2
6.2
14.8
19.7
24.9
13.5
99.1
98.6
92.7
61.7
62.4
0.0
0.0
7.1
38.1
37.5
3.2
3.4
2.1
1.2
1.4
5.3
2.3
1.8
1.0
0.5
-3,222
-4,756
-5,060
-13,111
-74,722
-9.4
-9.6
-5.9
-2.7
-2.8
2.1
0.9
1.5
2.1
0.9
14.7
6.2
8.4
10.3
4.5
-2.4
-2.5
-1.5
-0.8
-0.9
23.1
23.9
24.2
29.8
32.5
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
8,770
8,213
5,633
3,130
1,317
27,175
32.3
30.2
20.7
11.5
4.9
100.0
15,647
35,755
58,874
91,665
216,103
49,021
-581
4,019
10,903
20,700
57,895
8,483
16,228
31,736
47,971
70,964
158,208
40,539
845
247
187
39
3
3.1
0.9
0.7
0.1
0.0
135,186
188,332
332,770
1,587,850
7,937,589
34,457
49,666
85,427
486,474
2,653,545
100,729
138,666
247,343
1,101,376
5,284,044
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-3.7
11.2
18.5
22.6
26.8
17.3
10.3
22.0
24.9
21.5
21.4
100.0
12.9
23.7
24.5
20.2
18.9
100.0
-2.2
14.3
26.6
28.1
33.1
100.0
25.5
26.4
25.7
30.6
33.4
8.6
3.5
4.7
4.6
1.9
7.7
3.1
4.2
3.9
1.5
12.6
5.3
6.9
8.2
3.6
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Tax Units with Children
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
93.9
99.0
99.7
99.9
96.7
97.5
0.0
0.0
0.0
0.0
3.2
0.5
9.1
7.1
5.6
5.5
3.0
4.6
8.6
13.5
17.3
27.2
33.3
100.0
-1,638
-2,523
-3,263
-5,159
-7,669
-3,893
217.3
-51.8
-23.5
-17.8
-7.3
-14.2
-1.5
-1.6
-1.1
-0.9
5.2
0.0
-2.1
2.1
9.3
20.7
69.9
100.0
-9.5
-6.3
-4.5
-4.2
-2.1
-3.4
-13.9
5.8
14.7
19.4
26.9
20.9
100.0
99.9
92.0
61.7
56.5
0.0
0.0
7.8
38.1
43.3
4.7
4.5
2.1
1.0
1.5
15.0
9.1
5.9
3.3
2.0
-6,528
-8,762
-7,242
-17,065
-108,435
-13.1
-11.8
-5.2
-2.2
-2.9
0.2
0.3
1.7
3.1
1.3
16.3
11.2
17.6
24.8
11.2
-3.5
-3.2
-1.5
-0.7
-1.0
22.8
24.2
27.4
31.9
33.1
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
10,432
10,570
10,488
10,438
8,587
50,838
20.5
20.8
20.6
20.5
16.9
100.0
17,171
40,353
72,386
122,710
362,965
113,062
-754
4,875
13,902
28,914
105,397
27,494
17,925
35,478
58,485
93,796
257,569
85,567
4,538
2,056
1,608
385
36
8.9
4.0
3.2
0.8
0.1
189,201
270,179
478,067
2,423,697
11,187,796
49,670
74,176
138,355
790,591
3,808,070
139,531
196,003
339,711
1,633,105
7,379,726
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-4.4
12.1
19.2
23.6
29.0
24.3
3.1
7.4
13.2
22.3
54.2
100.0
4.3
8.6
14.1
22.5
50.9
100.0
-0.6
3.7
10.4
21.6
64.8
100.0
26.3
27.5
28.9
32.6
34.0
14.9
9.7
13.4
16.3
7.1
14.6
9.3
12.6
14.5
6.2
16.1
10.9
15.9
21.8
9.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0291
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2017
Detail Table - Elderly Tax Units
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
19.0
31.8
57.9
93.8
97.8
56.9
0.1
0.1
0.2
0.1
1.0
0.3
0.9
1.1
1.3
3.1
4.4
3.3
0.8
3.2
5.2
14.8
75.9
100.0
-115
-263
-568
-2,244
-9,577
-2,332
-37.7
-26.2
-21.0
-19.6
-12.4
-13.8
-0.1
-0.2
-0.3
-0.7
1.3
0.0
0.2
1.4
3.1
9.7
85.5
100.0
-0.9
-1.0
-1.2
-2.7
-3.2
-2.7
1.5
2.8
4.6
10.9
22.7
16.7
98.7
98.7
98.4
87.2
76.0
0.1
0.0
0.7
11.1
23.8
4.7
4.8
5.6
3.1
2.5
17.1
13.4
24.8
20.7
7.4
-4,796
-6,887
-13,293
-37,583
-124,419
-19.4
-17.1
-16.4
-7.0
-5.0
-0.8
-0.4
-0.6
3.2
2.1
11.4
10.4
20.1
43.5
22.7
-3.8
-3.8
-4.2
-2.2
-1.7
15.6
18.3
21.3
28.6
32.0
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, 2017 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
5,486
9,944
7,536
5,425
6,505
35,193
15.6
28.3
21.4
15.4
18.5
100.0
12,851
26,105
46,194
84,549
297,285
87,173
304
1,005
2,709
11,422
77,053
16,928
12,547
25,100
43,485
73,127
220,232
70,246
2,933
1,593
1,528
451
49
8.3
4.5
4.3
1.3
0.1
127,727
183,292
318,053
1,732,517
7,447,999
24,714
40,397
80,983
533,680
2,504,064
103,013
142,896
237,070
1,198,837
4,943,935
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.4
3.9
5.9
13.5
25.9
19.4
2.3
8.5
11.4
15.0
63.0
100.0
2.8
10.1
13.3
16.1
58.0
100.0
0.3
1.7
3.4
10.4
84.1
100.0
19.4
22.0
25.5
30.8
33.6
12.2
9.5
15.8
25.5
11.9
12.2
9.2
14.7
21.9
9.8
12.2
10.8
20.8
40.4
20.6
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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 estat
(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) 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 2009 dollars): 20% $14,392, 40% $26,987, 60% $45,911, 80% $76,270, 90% $109,860, 95% $155,381, 99%
$400,442, 99.9% $1,863,666.
(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.