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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017 1
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
62.2
67.5
77.0
81.5
86.3
87.9
75.9
30.5
8.6
4.9
71.7
With Tax
Increase
0.0
0.2
0.3
0.2
0.1
0.1
0.1
0.3
26.8
84.6
90.5
2.4
Percent
Change in
After-Tax
Income 4
5.9
3.2
2.1
1.7
1.4
1.2
0.9
0.6
-0.3
-2.6
-4.3
0.0
Share of Total
Federal Tax
Change
654.4
1,588.7
1,526.8
1,280.6
1,009.0
2,002.9
1,324.7
2,246.8
-700.2
-2,319.7
-8,543.5
100.0
Average
Federal Tax
Change ($)
-323
-514
-538
-582
-606
-677
-686
-705
682
14,515
100,806
-5
Average Federal Tax Rate5
Change (%
Points)
-5.5
-3.1
-1.9
-1.5
-1.2
-1.0
-0.7
-0.5
0.2
1.9
3.1
0.0
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: 6.8
Proposal: 5.5
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold
for inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009 parameters.
(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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
62.2
67.5
77.0
81.5
86.3
87.9
75.9
30.5
8.6
4.9
71.7
0.0
0.2
0.3
0.2
0.1
0.1
0.1
0.3
26.8
84.6
90.5
2.4
Percent Change
in After-Tax
Income 4
5.9
3.2
2.1
1.7
1.4
1.2
0.9
0.6
-0.3
-2.6
-4.3
0.0
Share of Total
Federal Tax
Change
654.4
1,588.7
1,526.8
1,280.6
1,009.0
2,002.9
1,324.7
2,246.8
-700.2
-2,319.7
-8,543.5
100.0
Average Federal Tax Change
Dollars
-323
-514
-538
-582
-606
-677
-686
-705
682
14,515
100,806
-5
Percent
-89.9
-69.0
-24.5
-12.4
-8.1
-5.6
-3.7
-2.1
0.9
7.6
11.2
0.0
Share of Federal Taxes
Change (%
Points)
-0.2
-0.4
-0.4
-0.3
-0.3
-0.5
-0.3
-0.6
0.2
0.6
2.2
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)
-5.5
-3.1
-1.9
-1.5
-1.2
-1.0
-0.7
-0.5
0.2
1.9
3.1
0.0
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)
360
745
2,196
4,687
7,463
12,135
18,733
33,147
75,945
190,240
896,636
18,557
Average AfterTax Income 4
(Dollars)
5,477
16,009
25,555
34,191
42,583
56,631
78,117
119,377
238,691
568,810
2,335,146
70,847
Average
Federal Tax
Rate 5
6.2
4.5
7.9
12.1
14.9
17.7
19.3
21.7
24.1
25.1
27.7
20.8
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
0.7
3.3
4.8
5.0
4.7
11.1
10.0
25.3
16.3
6.0
13.1
100.0
0.2
0.6
1.6
2.6
3.2
9.1
9.2
26.8
19.8
7.7
19.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 6.8
Proposal: 5.5
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009
parameters.
(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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
65.1
54.4
58.5
73.0
80.8
85.8
82.0
25.2
12.7
8.8
1.6
64.2
0.0
0.3
0.1
0.0
0.0
0.0
0.0
0.0
41.3
79.2
87.3
1.0
Percent Change
in After-Tax
Income 4
5.3
2.0
1.4
1.3
1.1
0.9
0.5
0.1
-0.5
-2.2
-4.0
0.5
Share of Total
Federal Tax
Change
22.4
33.3
30.1
25.0
18.0
32.3
13.1
3.6
-8.0
-14.3
-55.8
100.0
Average Federal Tax Change
Dollars
Percent
-281
-311
-336
-415
-428
-474
-394
-115
1,084
11,907
86,604
-191
-54.1
-24.4
-11.2
-7.1
-4.7
-3.2
-1.8
-0.3
1.4
6.2
9.1
-1.8
Share of Federal Taxes
Change (%
Points)
-0.4
-0.6
-0.5
-0.3
-0.2
-0.3
0.0
0.3
0.3
0.3
1.2
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
-1.9
-1.2
-1.1
-0.9
-0.7
-0.4
-0.1
0.3
1.6
2.8
-0.4
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)
519
1,278
3,009
5,886
9,159
14,790
22,365
35,876
78,483
193,554
955,184
10,527
Average AfterTax Income 4
(Dollars)
5,334
15,374
24,618
32,867
40,849
53,348
73,387
112,253
238,867
550,644
2,186,657
40,797
Average
Federal Tax
Rate 5
8.9
7.7
10.9
15.2
18.3
21.7
23.4
24.2
24.7
26.0
30.4
20.5
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
2.0
7.7
10.3
9.2
8.1
17.0
11.4
16.6
8.3
3.1
6.6
100.0
0.8
2.5
4.9
6.4
7.0
18.3
13.5
20.6
10.5
4.2
11.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009
parameters.
(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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
64.6
68.5
67.2
70.8
81.6
89.8
91.6
34.0
8.7
5.7
74.0
0.0
0.0
0.1
0.7
0.2
0.1
0.2
0.1
23.5
85.2
90.8
4.9
Percent Change
in After-Tax
Income 4
5.9
4.6
3.2
2.3
1.9
1.5
1.1
0.7
-0.2
-2.6
-4.4
-0.4
Share of Total
Federal Tax
Change
-1.9
-8.7
-13.4
-12.2
-11.7
-27.7
-25.2
-58.5
13.6
53.7
192.5
100.0
Average Federal Tax Change
Dollars
-270
-760
-862
-844
-871
-921
-879
-894
583
14,904
101,303
463
Percent
-89.1
-130.8
-63.5
-28.4
-17.9
-10.0
-5.4
-2.8
0.8
7.8
11.6
1.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.2
-0.2
-0.4
-0.4
-1.2
-0.2
0.6
2.3
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)
-5.5
-4.4
-3.1
-2.2
-1.7
-1.3
-0.9
-0.6
0.2
2.0
3.2
0.3
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)
303
581
1,357
2,967
4,869
9,219
16,379
32,487
75,454
190,129
871,481
33,000
Average AfterTax Income 4
(Dollars)
4,572
16,679
26,650
36,101
45,325
60,451
81,295
121,926
238,506
571,757
2,323,859
119,718
Average
Federal Tax
Rate 5
6.2
3.4
4.9
7.6
9.7
13.2
16.8
21.0
24.0
25.0
27.3
21.6
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
0.7
1.6
2.0
2.3
7.0
9.0
30.9
21.6
8.0
17.1
100.0
0.0
0.1
0.3
0.6
0.9
3.9
6.6
29.8
24.8
9.6
23.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009
parameters.
(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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
82.4
89.5
93.7
96.0
96.0
94.7
35.1
11.5
8.0
0.6
86.5
0.0
0.0
1.1
0.2
0.1
0.1
0.0
0.0
43.3
89.6
96.9
0.7
Percent Change
in After-Tax
Income 4
8.4
5.4
2.9
1.9
1.5
1.2
0.8
0.2
-0.5
-2.6
-4.6
1.5
Share of Total
Federal Tax
Change
7.8
29.9
21.7
16.7
10.8
16.9
6.8
1.6
-1.4
-2.8
-8.3
100.0
Average Federal Tax Change
Dollars
-596
-951
-785
-674
-650
-681
-642
-200
1,184
14,681
101,776
-629
Percent
139.0
125.0
-128.6
-17.8
-9.2
-5.9
-3.3
-0.6
1.5
8.5
11.5
-8.7
Share of Federal Taxes
Change (%
Points)
-0.8
-3.1
-1.9
-0.8
-0.1
0.8
1.0
2.0
0.9
0.5
1.4
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)
-9.0
-5.7
-2.8
-1.7
-1.3
-1.0
-0.7
-0.1
0.4
2.0
3.3
-1.3
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)
-429
-761
611
3,779
7,038
11,635
19,218
32,754
76,962
173,442
887,220
7,225
Average AfterTax Income 4
(Dollars)
7,087
17,503
27,198
35,158
42,832
56,605
76,660
110,216
241,993
576,778
2,233,333
41,797
Average
Federal Tax
Rate 5
-6.4
-4.5
2.2
9.7
14.1
17.1
20.0
22.9
24.1
23.1
28.4
14.7
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
8.3
11.3
13.2
10.7
21.2
12.2
13.3
4.2
1.7
2.7
100.0
-0.5
-2.1
1.5
8.2
10.2
25.2
17.8
22.9
7.7
2.9
6.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009
parameters.
(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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Level, 2017 1
Detail Table - Tax Units with Children
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
80.7
95.3
96.7
98.3
98.6
98.7
98.1
92.4
34.2
4.5
1.7
89.5
0.0
0.0
0.6
0.1
0.0
0.1
0.3
0.2
24.0
92.7
96.6
3.4
Percent Change
in After-Tax
Income 4
9.0
6.8
4.0
2.8
2.3
1.7
1.2
0.8
-0.3
-3.3
-5.2
0.1
Share of Total
Federal Tax
Change
35.3
143.3
131.3
106.2
81.6
158.3
114.3
233.5
-52.1
-209.9
-644.3
100.0
Average Federal Tax Change
Dollars
-634
-1,249
-1,102
-985
-987
-985
-950
-984
648
18,194
117,400
-91
Percent
93.5
84.9
4,177.9
-30.3
-15.3
-9.0
-5.4
-3.0
0.8
9.0
12.8
-0.4
Share of Federal Taxes
Change (%
Points)
-0.1
-0.6
-0.5
-0.4
-0.3
-0.6
-0.4
-0.8
0.3
0.8
2.6
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
-10.0
-7.4
-4.0
-2.5
-2.0
-1.4
-1.0
-0.6
0.2
2.4
3.7
-0.1
-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)
-678
-1,472
-26
3,250
6,467
10,891
17,621
33,105
77,624
201,717
916,933
23,692
Average AfterTax Income 4
(Dollars)
7,046
18,331
27,819
35,724
43,567
58,145
79,706
120,315
235,224
556,601
2,269,973
89,369
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
-10.7
-8.7
-0.1
8.3
12.9
15.8
18.1
21.6
24.8
26.6
28.8
21.0
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
2.1
3.4
3.9
3.7
9.5
9.8
29.1
19.3
6.5
12.7
100.0
-0.1
-0.7
0.0
1.4
2.1
6.7
8.1
30.2
24.0
8.9
19.3
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. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009
parameters.
(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 T09-0292
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
12.5
17.5
25.4
26.4
35.0
47.2
43.0
19.6
10.8
4.5
25.5
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.2
28.6
75.1
88.6
2.3
Percent Change
in After-Tax
Income 4
0.8
0.4
0.3
0.4
0.3
0.3
0.4
0.2
-0.2
-1.3
-3.3
-0.5
Share of Total
Federal Tax
Change
-0.8
-3.6
-4.9
-4.6
-3.2
-7.3
-7.7
-10.4
7.2
18.8
116.6
100.0
Average Federal Tax Change
Dollars
Percent
-48
-63
-87
-132
-145
-212
-316
-290
566
7,749
78,450
334
-24.6
-18.0
-10.1
-7.0
-5.2
-3.5
-2.5
-1.1
0.8
4.4
8.6
2.3
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.3
-0.7
-0.3
0.2
2.0
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
-0.4
-0.3
-0.3
-0.3
-0.3
-0.3
-0.2
0.2
1.0
2.4
0.4
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)
195
351
866
1,890
2,795
6,059
12,502
25,557
67,668
177,479
907,740
14,262
Average AfterTax Income 4
(Dollars)
5,971
16,785
26,676
36,741
47,067
63,367
84,370
126,920
254,569
587,993
2,376,162
72,912
Average
Federal Tax
Rate 5
3.2
2.1
3.1
4.9
5.6
8.7
12.9
16.8
21.0
23.2
27.6
16.4
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
4.4
6.9
5.8
4.7
10.1
9.5
20.8
14.8
6.5
16.2
100.0
0.1
0.5
1.2
1.5
1.4
4.9
7.2
21.4
20.1
10.1
31.6
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. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009
parameters.
(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.