22-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 T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 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
0.4
3.7
13.8
23.2
22.1
21.7
22.2
22.7
20.5
16.9
15.2
16.6
With Tax
Increase
8.8
15.0
13.6
17.9
31.4
42.2
46.9
48.5
50.2
47.3
45.1
30.2
Percent
Change in
After-Tax
4
Income
-2.7
-2.2
-1.2
-0.6
-0.4
-0.3
-0.4
-0.6
-0.5
-0.2
-0.1
-0.5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
3.6
12.5
11.1
5.7
3.3
5.7
7.3
29.8
16.4
2.9
1.3
100.0
161
379
327
207
168
162
306
732
1,219
1,449
1,294
395
Average Federal Tax Rate5
Change (%
Points)
2.5
2.0
1.1
0.5
0.3
0.2
0.3
0.4
0.4
0.2
0.0
0.4
Under the
Proposal
9.1
7.7
10.4
13.9
17.1
20.0
22.6
25.3
28.1
28.4
32.0
24.2
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-3).
Number of AMT Taxpayers (millions). Baseline: 43.1
Proposal: 45.1
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single
coverage and $5,700 for family coverage in 2010. For subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.
22-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 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
0.4
3.7
13.8
23.2
22.1
21.7
22.2
22.7
20.5
16.9
15.2
16.6
8.8
15.0
13.6
17.9
31.4
42.2
46.9
48.5
50.2
47.3
45.1
30.2
Percent Change
in After-Tax
Income 4
-2.7
-2.2
-1.2
-0.6
-0.4
-0.3
-0.4
-0.6
-0.5
-0.2
-0.1
-0.5
Share of Total
Federal Tax
Change
3.6
12.5
11.1
5.7
3.3
5.7
7.3
29.8
16.4
2.9
1.3
100.0
Average Federal Tax Change
Dollars
161
379
327
207
168
162
306
732
1,219
1,449
1,294
395
Percent
39.1
35.9
11.4
3.6
1.8
1.1
1.3
1.8
1.3
0.6
0.1
1.6
Share of Federal Taxes
Change (%
Points)
0.1
0.2
0.2
0.1
0.0
-0.1
0.0
0.0
-0.1
-0.1
-0.3
0.0
Under the
Proposal
0.2
0.8
1.8
2.6
2.9
8.5
9.2
27.9
21.2
7.5
17.3
100.0
Average Federal Tax Rate 5
Change (%
Points)
2.5
2.0
1.1
0.5
0.3
0.2
0.3
0.4
0.4
0.2
0.0
0.4
Under the
Proposal
9.1
7.7
10.4
13.9
17.1
20.0
22.6
25.3
28.1
28.4
32.0
24.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2019 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)
15,216
22,318
23,036
18,537
13,113
23,535
16,057
27,562
9,079
1,336
656
171,212
Percent of
Total
8.9
13.0
13.5
10.8
7.7
13.8
9.4
16.1
5.3
0.8
0.4
100.0
Average
Income
(Dollars)
6,340
18,629
30,736
42,822
55,035
75,739
106,668
168,288
347,637
831,071
3,459,830
101,380
Average
Federal Tax
Burden
(Dollars)
413
1,057
2,870
5,744
9,259
14,996
23,799
41,822
96,618
234,797
1,104,557
24,130
Average AfterTax Income 4
(Dollars)
5,927
17,573
27,867
37,078
45,776
60,743
82,869
126,466
251,019
596,273
2,355,272
77,250
Average
Federal Tax
Rate 5
6.5
5.7
9.3
13.4
16.8
19.8
22.3
24.9
27.8
28.3
31.9
23.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
2.4
4.1
4.6
4.2
10.3
9.9
26.7
18.2
6.4
13.1
100.0
0.7
3.0
4.9
5.2
4.5
10.8
10.1
26.4
17.2
6.0
11.7
100.0
0.2
0.6
1.6
2.6
2.9
8.5
9.3
27.9
21.2
7.6
17.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-3).
Number of AMT Taxpayers (millions). Baseline: 43.1
Proposal: 45.1
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single coverage and $5,700 for family coverage in 2010. For
subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.
22-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
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
0.3
5.5
19.9
32.3
21.1
10.4
7.9
9.6
13.9
9.7
7.7
13.2
8.1
11.4
4.8
6.5
32.9
55.5
57.2
48.6
35.0
33.9
30.7
22.9
Percent
Change in
After-Tax
4
Income
-2.2
-0.6
0.4
0.6
-0.1
-0.6
-0.5
-0.3
-0.1
0.0
0.0
-0.2
Share of Total
Federal Tax
Change
20.7
19.7
-21.8
-32.5
2.2
51.0
28.6
27.5
3.1
0.6
0.3
100.0
Average Federal Tax Change
Dollars
125
94
-106
-223
23
329
351
348
166
195
186
86
Percent
21.0
5.4
-3.0
-3.5
0.2
1.9
1.3
0.8
0.2
0.1
0.0
0.6
Share of Federal Taxes
Change (%
Points)
0.1
0.1
-0.2
-0.2
0.0
0.2
0.1
0.0
-0.1
0.0
-0.1
0.0
Under the
Proposal
0.8
2.4
4.4
5.6
6.2
17.2
14.3
22.5
12.1
4.3
10.2
100.0
5
Average Federal Tax Rate
Change (%
Points)
2.0
0.5
-0.3
-0.5
0.0
0.4
0.3
0.2
0.1
0.0
0.0
0.1
Under the
Proposal
11.4
10.0
11.0
14.3
18.8
23.4
26.3
27.6
29.5
30.0
35.0
23.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2019
Cash Income Level
(thousands of 2009
2
dollars)
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
10,898
13,747
13,575
9,599
6,219
10,179
5,356
5,192
1,217
184
89
76,642
14.2
17.9
17.7
12.5
8.1
13.3
7.0
6.8
1.6
0.2
0.1
100.0
Average
Income
(Dollars)
6,340
18,508
30,687
42,672
55,020
75,275
105,607
163,607
350,420
811,418
3,403,318
59,235
Average
Federal Tax
Burden
(Dollars)
595
1,758
3,476
6,328
10,331
17,307
27,410
44,861
103,201
243,366
1,190,282
13,524
Average After4
Tax Income
(Dollars)
5,745
16,751
27,210
36,345
44,689
57,968
78,198
118,746
247,219
568,052
2,213,036
45,711
Average
Federal Tax
5
Rate
9.4
9.5
11.3
14.8
18.8
23.0
26.0
27.4
29.5
30.0
35.0
22.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.5
5.6
9.2
9.0
7.5
16.9
12.5
18.7
9.4
3.3
6.7
100.0
1.8
6.6
10.5
10.0
7.9
16.8
12.0
17.6
8.6
3.0
5.7
100.0
0.6
2.3
4.6
5.9
6.2
17.0
14.2
22.5
12.1
4.3
10.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-3).
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single coverage and $5,700 for family coverage in 2010. For
subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.
22-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
2
dollars)
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
1.0
0.4
3.5
9.9
17.4
29.1
28.2
25.4
21.4
18.3
16.4
20.6
15.3
23.1
24.3
24.0
24.4
28.5
42.5
49.4
53.4
49.9
48.0
39.1
Percent
Change in
After-Tax
4
Income
-8.2
-5.1
-3.0
-1.5
-0.7
-0.1
-0.4
-0.7
-0.6
-0.3
-0.1
-0.6
Share of Total
Federal Tax
Change
1.8
6.1
7.9
5.2
2.5
0.6
6.1
39.8
23.5
4.0
1.8
100.0
Average Federal Tax Change
Dollars
Percent
402
925
843
570
321
32
332
881
1,412
1,665
1,483
714
108.4
108.0
36.1
12.8
4.7
0.3
1.6
2.1
1.5
0.7
0.1
1.7
Share of Federal Taxes
Change (%
Points)
0.0
0.1
0.1
0.1
0.0
-0.1
0.0
0.2
-0.1
-0.1
-0.3
0.0
Under the
Proposal
0.1
0.2
0.5
0.8
0.9
3.5
6.4
31.0
26.4
9.3
20.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
7.6
4.9
2.7
1.3
0.6
0.0
0.3
0.5
0.4
0.2
0.0
0.4
Under the
Proposal
14.7
9.4
10.3
11.7
13.1
15.5
20.0
24.6
28.0
28.2
31.5
25.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2019
Cash Income Level
(thousands of 2009
2
dollars)
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
2,017
3,019
4,259
4,182
3,579
8,282
8,356
20,595
7,584
1,106
542
63,816
3.2
4.7
6.7
6.6
5.6
13.0
13.1
32.3
11.9
1.7
0.9
100.0
Average
Income
(Dollars)
5,266
18,993
30,922
43,101
55,177
76,619
107,732
170,416
346,930
834,311
3,418,069
172,338
Average
Federal Tax
Burden
(Dollars)
371
857
2,337
4,467
6,914
11,824
21,182
41,111
95,593
233,877
1,073,726
43,042
Average After4
Tax Income
(Dollars)
4,895
18,136
28,585
38,634
48,263
64,796
86,550
129,305
251,337
600,434
2,344,344
129,297
Average
Federal Tax
5
Rate
7.1
4.5
7.6
10.4
12.5
15.4
19.7
24.1
27.6
28.0
31.4
25.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.5
1.2
1.6
1.8
5.8
8.2
31.9
23.9
8.4
16.8
100.0
0.1
0.7
1.5
2.0
2.1
6.5
8.8
32.3
23.1
8.1
15.4
100.0
0.0
0.1
0.4
0.7
0.9
3.6
6.4
30.8
26.4
9.4
21.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-3).
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single coverage and $5,700 for family coverage in 2010. For
subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.
22-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
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
0.6
0.7
5.4
17.1
31.6
35.5
38.0
33.9
29.3
17.0
18.8
17.6
5.3
18.2
27.5
34.6
33.0
35.3
35.0
33.5
20.5
35.8
24.8
27.8
Percent
Change in
After-Tax
4
Income
-1.3
-4.0
-3.6
-1.9
-0.1
0.5
0.6
0.4
0.2
0.0
0.0
-0.7
Share of Total
Federal Tax
Change
2.4
43.8
54.5
32.8
0.8
-14.7
-11.1
-7.5
-1.2
0.1
0.0
100.0
Average Federal Tax Change
Dollars
Percent
105
780
1,040
693
25
-308
-518
-467
-556
194
-258
334
-21.7
-107.2
69.6
12.6
0.3
-2.0
-2.1
-1.2
-0.6
0.1
0.0
3.4
Share of Federal Taxes
Change (%
Points)
0.1
1.5
1.7
0.8
-0.3
-1.3
-1.0
-1.0
-0.3
-0.1
-0.2
0.0
Under the
Proposal
-0.3
0.1
4.4
9.7
9.9
23.5
16.9
21.3
6.9
2.4
5.3
100.0
5
Average Federal Tax Rate
Change (%
Points)
1.4
4.2
3.4
1.6
0.1
-0.4
-0.5
-0.3
-0.2
0.0
0.0
0.6
Under the
Proposal
-5.2
0.3
8.3
14.4
17.2
19.8
22.7
25.5
26.7
25.8
32.4
18.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2019
Cash Income Level
(thousands of 2009
2
dollars)
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
2,183
5,310
4,952
4,473
2,986
4,521
2,018
1,518
208
32
14
28,273
7.7
18.8
17.5
15.8
10.6
16.0
7.1
5.4
0.7
0.1
0.1
100.0
Average
Income
(Dollars)
7,344
18,744
30,697
42,878
54,861
75,156
105,144
157,302
353,325
832,114
3,377,088
55,137
Average
Federal Tax
Burden
(Dollars)
-483
-728
1,494
5,499
9,433
15,165
24,408
40,531
94,702
214,233
1,094,352
9,783
Average After4
Tax Income
(Dollars)
7,828
19,472
29,203
37,379
45,428
59,990
80,736
116,771
258,623
617,882
2,282,736
45,355
Average
Federal Tax
5
Rate
-6.6
-3.9
4.9
12.8
17.2
20.2
23.2
25.8
26.8
25.8
32.4
17.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.0
6.4
9.8
12.3
10.5
21.8
13.6
15.3
4.7
1.7
3.0
100.0
1.3
8.1
11.3
13.0
10.6
21.2
12.7
13.8
4.2
1.6
2.5
100.0
-0.4
-1.4
2.7
8.9
10.2
24.8
17.8
22.2
7.1
2.5
5.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-3).
(1) Calendar year. Baseline is current law. Proposal replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single coverage and $5,700 for family coverage in 2010. For
subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.
22-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 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
2.1
0.4
3.6
10.9
23.5
29.6
26.4
20.8
17.9
13.4
12.2
16.6
7.5
22.5
30.3
39.6
39.1
41.7
53.1
65.0
66.1
63.6
62.3
44.8
Percent Change
in After-Tax
Income 4
-2.6
-5.6
-4.8
-2.9
-1.0
-0.4
-0.7
-1.2
-0.9
-0.5
-0.1
-1.1
Share of Total
Federal Tax
Change
1.0
11.1
14.4
10.2
3.4
3.5
5.7
30.3
16.2
2.8
1.1
100.0
Average Federal Tax Change
Dollars
Percent
204
1,134
1,413
1,077
477
254
545
1,503
2,218
2,683
2,393
1,056
-27.8
-79.1
128.3
20.5
5.2
1.7
2.3
3.5
2.3
1.1
0.2
3.4
Share of Federal Taxes
Change (%
Points)
0.0
0.4
0.5
0.3
0.0
-0.1
-0.1
0.0
-0.3
-0.2
-0.6
0.0
Under the
Proposal
-0.1
-0.1
0.9
2.0
2.3
6.8
8.3
29.8
24.4
8.5
17.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
2.9
6.1
4.6
2.5
0.9
0.3
0.5
0.9
0.6
0.3
0.1
0.9
Under the
Proposal
-7.5
-1.6
8.2
14.8
17.7
19.6
22.6
26.4
29.1
30.0
33.1
25.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2019 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
2,546
5,377
5,600
5,184
3,885
7,565
5,696
11,048
3,997
567
253
51,871
4.9
10.4
10.8
10.0
7.5
14.6
11.0
21.3
7.7
1.1
0.5
100.0
Average
Income
(Dollars)
7,027
18,656
30,657
42,987
55,138
75,999
107,089
169,242
346,789
831,182
3,382,075
124,878
Average
Federal Tax
Burden
(Dollars)
-733
-1,434
1,101
5,264
9,258
14,660
23,600
43,222
98,716
246,987
1,118,026
30,881
Average AfterTax Income 4
(Dollars)
7,760
20,090
29,556
37,724
45,880
61,339
83,489
126,020
248,073
584,196
2,264,048
93,996
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-10.4
-7.7
3.6
12.2
16.8
19.3
22.0
25.5
28.5
29.7
33.1
24.7
0.3
1.6
2.7
3.4
3.3
8.9
9.4
28.9
21.4
7.3
13.2
100.0
0.4
2.2
3.4
4.0
3.7
9.5
9.8
28.6
20.3
6.8
11.8
100.0
-0.1
-0.5
0.4
1.7
2.3
6.9
8.4
29.8
24.6
8.7
17.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-3).
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 replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single coverage and $5,700 for family coverage in 2010. For
subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.
22-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0266
Replace Employer Sponsored Health Insurance Income and Payroll Tax Exclusion, with Non-refundable Credit
Credit Indexed by the Average Growth of CPI and Medical Expenses
Distribution of Federal Tax Change by Cash Income Level, 2019 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
0.0
0.8
2.1
3.1
2.9
4.8
8.8
11.1
9.6
8.8
8.2
4.9
3.7
3.6
2.5
3.1
5.3
9.0
16.9
18.4
22.0
19.9
18.9
9.0
Percent Change
in After-Tax
Income 4
-1.2
-0.4
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
Share of Total
Federal Tax
Change
5.2
13.5
8.4
1.3
2.9
5.6
8.7
21.9
26.3
4.0
2.2
100.0
Average Federal Tax Change
Dollars
72
67
32
7
32
38
67
91
328
329
338
70
Percent
28.5
10.7
3.0
0.3
1.1
0.5
0.4
0.3
0.4
0.2
0.0
0.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
Under the
Proposal
0.1
0.5
1.0
1.2
0.9
3.6
7.9
27.8
24.0
8.8
24.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
1.2
0.4
0.1
0.0
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.1
Under the
Proposal
5.2
3.6
3.5
4.9
5.5
9.9
17.1
20.6
25.9
26.7
31.7
19.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2019 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
1,881
5,216
6,858
4,723
2,385
3,763
3,384
6,294
2,092
313
170
37,096
5.1
14.1
18.5
12.7
6.4
10.1
9.1
17.0
5.6
0.8
0.5
100.0
Average
Income
(Dollars)
6,274
19,399
30,858
42,480
54,463
76,385
107,102
168,679
348,365
830,018
3,548,849
106,595
Average
Federal Tax
Burden
(Dollars)
253
634
1,058
2,060
2,971
7,520
18,224
34,729
89,985
221,256
1,123,271
21,157
Average AfterTax Income 4
(Dollars)
6,021
18,765
29,800
40,420
51,493
68,865
88,878
133,950
258,380
608,761
2,425,578
85,438
Average
Federal Tax
Rate 5
4.0
3.3
3.4
4.9
5.5
9.8
17.0
20.6
25.8
26.7
31.7
19.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.3
2.6
5.4
5.1
3.3
7.3
9.2
26.9
18.4
6.6
15.2
100.0
0.4
3.1
6.5
6.0
3.9
8.2
9.5
26.6
17.1
6.0
13.0
100.0
0.1
0.4
0.9
1.2
0.9
3.6
7.9
27.9
24.0
8.8
24.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version0309-3).
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 replaces the employer sponsored health insurance exclusion with a non-refundable tax credit of $2,300 for single coverage and $5,700 for family coverage in 2010. For
subsequent years, the credit levels are indexed by the average growth between CPI and medical expenses.
(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.