5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary Table
Tax Units with Tax Increase or Cut 4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
Pct of Tax Avg Tax Cut
Units
With Tax Increase
Pct of Tax Avg Tax Units
Increase
Percent Change in After‐Tax Income5
Share of Total Federal Tax Change
Average Federal Tax Change ($)
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
55.4
75.4
83.5
88.3
90.4
75.7
‐27
‐69
‐123
‐216
‐377
‐153
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0.2
0.2
0.3
0.3
0.2
0.2
3.4
10.1
17.6
26.9
41.8
100.0
‐15
‐52
‐103
‐191
‐341
‐116
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
‐0.2
1.5
7.1
13.9
18.7
25.4
20.3
89.9
92.0
90.0
88.8
87.6
‐336
‐409
‐422
‐446
‐447
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0.3
0.3
0.2
0.0
0.0
18.7
11.3
9.4
2.5
0.3
‐302
‐376
‐380
‐396
‐391
‐0.2
‐0.2
‐0.1
0.0
0.0
22.3
24.6
25.7
28.0
30.4
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
Number of AMT Taxpayers (millions). Baseline: 31.2 Proposal: 31.2
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2011 dollars): 20% $17,130; 40% $34,174; 60% $62,042; 80% $104,401; 90% $169,059; 95% $216,085; 99% $569,944; 99.9% $2,474,273.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail Table
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
55.4
75.4
83.5
88.3
90.4
75.7
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.3
0.3
0.2
0.2
3.4
10.1
17.6
26.9
41.8
100.0
‐15
‐52
‐103
‐191
‐341
‐116
‐9.8
‐2.8
‐1.6
‐1.2
‐0.5
‐0.8
0.0
‐0.1
‐0.1
‐0.1
0.2
0.0
0.3
2.8
8.9
17.7
70.3
100.0
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
‐0.2
1.5
7.1
13.9
18.7
25.4
20.3
89.9
92.0
90.0
88.8
87.6
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.2
0.0
0.0
18.7
11.3
9.4
2.5
0.3
‐302
‐376
‐380
‐396
‐391
‐1.0
‐0.8
‐0.4
‐0.1
0.0
0.0
0.0
0.1
0.2
0.1
15.5
11.5
17.8
25.5
13.5
‐0.2
‐0.2
‐0.1
0.0
0.0
22.3
24.6
25.7
28.0
30.4
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
43,663
37,050
32,849
27,060
23,575
165,201
26.4
22.4
19.9
16.4
14.3
100.0
9,572
25,295
45,950
81,893
275,386
69,939
3.6
8.1
13.1
19.2
56.2
100.0
154
1,844
6,476
15,515
70,355
14,336
0.3
2.9
9.0
17.7
70.0
100.0
9,418
23,451
39,474
66,378
205,030
55,604
4.5
9.5
14.1
19.6
52.6
100.0
1.6
7.3
14.1
19.0
25.6
20.5
11,894
5,764
4,723
1,193
122
7.2
3.5
2.9
0.7
0.1
137,086
191,432
344,096
1,787,841
8,534,016
14.1
9.6
14.1
18.5
9.0
30,880
47,366
88,941
501,420
2,595,815
15.5
11.5
17.7
25.3
13.4
106,206
144,066
255,155
1,286,421
5,938,201
13.8
9.0
13.1
16.7
7.9
22.5
24.7
25.9
28.1
30.4
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
Number of AMT Taxpayers (millions). Baseline: 31.2 Proposal: 31.2
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2011 dollars): 20%
$17,130; 40% $34,174; 60% $62,042; 80% $104,401; 90% $169,059; 95% $216,085; 99% $569,944; 99.9% $2,474,273.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
63.2
66.7
79.0
86.5
88.0
75.7
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.3
0.3
0.2
0.2
3.4
8.3
15.5
26.7
45.9
100.0
‐18
‐46
‐89
‐166
‐299
‐116
7.3
‐3.9
‐1.7
‐1.3
‐0.5
‐0.8
0.0
‐0.1
‐0.1
‐0.1
0.2
0.0
‐0.4
1.7
7.4
17.0
74.3
100.0
‐0.2
‐0.2
‐0.2
‐0.2
‐0.1
‐0.2
‐3.0
5.1
12.8
18.2
25.2
20.3
88.6
87.6
87.8
83.8
83.7
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.2
0.0
0.0
20.1
12.5
10.6
2.6
0.3
‐262
‐324
‐348
‐349
‐354
‐1.0
‐0.8
‐0.5
‐0.1
0.0
0.0
0.0
0.1
0.2
0.1
16.3
12.6
18.9
26.5
13.9
‐0.2
‐0.2
‐0.1
0.0
0.0
22.5
23.7
25.6
27.9
30.3
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
35,974
34,567
33,255
30,969
29,431
165,201
21.8
20.9
20.1
18.8
17.8
100.0
8,876
22,590
40,903
70,796
235,116
69,939
2.8
6.8
11.8
19.0
59.9
100.0
‐250
1,195
5,325
13,023
59,579
14,336
‐0.4
1.7
7.5
17.0
74.0
100.0
9,126
21,395
35,577
57,773
175,537
55,604
3.6
8.1
12.9
19.5
56.2
100.0
‐2.8
5.3
13.0
18.4
25.3
20.5
14,735
7,387
5,859
1,450
144
8.9
4.5
3.6
0.9
0.1
115,382
169,033
296,436
1,540,746
7,479,092
14.7
10.8
15.0
19.3
9.3
26,204
40,318
76,104
430,079
2,268,428
16.3
12.6
18.8
26.3
13.8
89,178
128,715
220,332
1,110,667
5,210,663
14.3
10.4
14.1
17.5
8.2
22.7
23.9
25.7
27.9
30.3
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
Number of AMT Taxpayers (millions). Baseline: 31.2 Proposal: 31.2
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $11,888; 40% $22,737; 60% $38,728; 80% $67,694; 90% $99,454; 95% $141,130; 99% $361,878; 99.9% $1,491,280.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table ‐ Single Tax Units
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
53.7
48.7
71.9
82.8
81.7
63.4
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.2
0.3
0.2
0.2
5.4
9.5
19.9
28.7
36.4
100.0
‐11
‐24
‐60
‐116
‐203
‐61
‐3.8
‐1.9
‐1.4
‐1.2
‐0.5
‐0.9
0.0
‐0.1
‐0.1
‐0.1
0.2
0.0
1.2
4.5
12.5
21.3
60.4
100.0
‐0.2
‐0.1
‐0.2
‐0.2
‐0.1
‐0.2
4.1
7.1
13.6
19.1
25.2
18.7
84.9
78.4
77.9
68.4
67.8
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.2
0.0
0.0
19.7
6.6
8.5
1.6
0.1
‐185
‐222
‐242
‐197
‐206
‐1.0
‐0.8
‐0.5
‐0.1
0.0
0.0
0.0
0.1
0.2
0.1
17.6
7.0
15.1
20.7
10.2
‐0.2
‐0.2
‐0.1
0.0
0.0
22.7
23.0
24.5
29.5
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
23,296
19,542
16,237
12,148
8,806
80,620
28.9
24.2
20.1
15.1
10.9
100.0
7,053
17,555
30,999
50,263
149,273
36,344
5.6
11.7
17.2
20.8
44.9
100.0
301
1,274
4,287
9,710
37,812
6,859
1.3
4.5
12.6
21.3
60.2
100.0
6,752
16,280
26,713
40,554
111,460
29,486
6.6
13.4
18.3
20.7
41.3
100.0
4.3
7.3
13.8
19.3
25.3
18.9
5,247
1,450
1,714
395
34
6.5
1.8
2.1
0.5
0.0
80,765
115,538
197,496
972,862
5,001,060
14.5
5.7
11.6
13.1
5.8
18,547
26,829
48,621
286,828
1,654,017
17.6
7.0
15.1
20.5
10.2
62,217
88,708
148,875
686,034
3,347,043
13.7
5.4
10.7
11.4
4.8
23.0
23.2
24.6
29.5
33.1
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $11,888; 40% $22,737; 60% $38,728; 80% $67,694; 90% $99,454; 95% $141,130; 99% $361,878; 99.9% $1,491,280.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table ‐ Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
76.7
85.0
81.6
87.9
90.5
86.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.3
0.3
0.2
0.2
1.3
4.4
11.4
26.4
56.3
100.0
‐36
‐79
‐119
‐201
‐347
‐207
4.1
‐5.0
‐1.9
‐1.3
‐0.5
‐0.7
0.0
0.0
‐0.1
‐0.1
0.2
0.0
‐0.2
0.6
4.3
14.4
80.9
100.0
‐0.3
‐0.3
‐0.2
‐0.2
‐0.1
‐0.2
‐6.9
4.8
11.7
17.5
25.2
22.0
90.5
89.6
92.1
89.7
89.7
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.2
0.0
0.0
22.8
16.9
13.2
3.5
0.4
‐313
‐352
‐399
‐414
‐412
‐1.0
‐0.8
‐0.5
‐0.1
0.0
‐0.1
0.0
0.1
0.2
0.1
16.1
15.0
21.0
28.8
15.0
‐0.2
‐0.2
‐0.1
0.0
0.0
22.3
23.8
25.8
27.5
29.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
4,296
6,617
11,298
15,501
19,157
57,183
7.5
11.6
19.8
27.1
33.5
100.0
13,221
31,809
53,751
87,305
276,344
131,340
0.8
2.8
8.1
18.0
70.5
100.0
‐876
1,597
6,415
15,477
69,940
29,038
‐0.2
0.6
4.4
14.5
80.7
100.0
14,097
30,212
47,336
71,828
206,404
102,302
1.0
3.4
9.1
19.0
67.6
100.0
‐6.6
5.0
11.9
17.7
25.3
22.1
8,593
5,655
3,914
995
102
15.0
9.9
6.9
1.7
0.2
138,354
183,483
342,206
1,736,620
8,159,559
15.8
13.8
17.8
23.0
11.0
31,211
43,951
88,816
477,823
2,431,222
16.2
15.0
20.9
28.6
14.9
107,143
139,532
253,390
1,258,797
5,728,337
15.7
13.5
17.0
21.4
10.0
22.6
24.0
26.0
27.5
29.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $11,888; 40% $22,737; 60% $38,728; 80% $67,694; 90% $99,454; 95% $141,130; 99% $361,878; 99.9% $1,491,280.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table ‐ Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
82.7
94.3
94.2
94.1
93.4
90.2
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.3
0.3
0.3
0.2
0.3
10.5
26.7
26.9
23.3
12.5
100.0
‐28
‐73
‐118
‐191
‐268
‐88
1.8
‐12.9
‐1.9
‐1.4
‐0.6
‐2.0
‐0.5
‐0.5
0.0
0.3
0.7
0.0
‐12.1
3.8
28.4
35.5
44.4
100.0
‐0.2
‐0.3
‐0.3
‐0.3
‐0.1
‐0.2
‐13.2
1.8
13.3
19.3
24.7
11.4
92.2
98.1
91.9
91.9
79.8
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.1
0.0
0.0
7.0
3.1
1.9
0.4
0.0
‐251
‐305
‐278
‐286
‐266
‐1.0
‐0.8
‐0.4
‐0.1
0.0
0.2
0.1
0.2
0.2
0.1
14.1
8.1
9.7
12.4
6.1
‐0.2
‐0.2
‐0.1
0.0
0.0
23.1
23.6
24.5
28.0
30.0
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
8,142
7,970
4,970
2,665
1,013
24,826
32.8
32.1
20.0
10.7
4.1
100.0
11,820
27,357
44,886
72,171
185,283
36,919
10.5
23.8
24.3
21.0
20.5
100.0
‐1,529
568
6,090
14,127
46,082
4,301
‐11.7
4.2
28.4
35.3
43.7
100.0
13,349
26,788
38,796
58,044
139,201
32,618
13.4
26.4
23.8
19.1
17.4
100.0
‐12.9
2.1
13.6
19.6
24.9
11.7
607
223
151
34
3
2.4
0.9
0.6
0.1
0.0
105,401
160,960
276,308
1,383,004
6,783,100
7.0
3.9
4.5
5.1
2.3
24,625
38,335
67,886
387,752
2,037,547
14.0
8.0
9.6
12.2
6.0
80,776
122,625
208,422
995,253
4,745,554
6.1
3.4
3.9
4.1
1.8
23.4
23.8
24.6
28.0
30.0
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
(1) Calendar year. Baseline is current law without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $11,888; 40% $22,737; 60% $38,728; 80% $67,694; 90% $99,454; 95% $141,130; 99% $361,878; 99.9% $1,491,280.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table ‐ Tax Units with Children
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
88.3
98.9
98.3
98.7
98.9
96.5
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.3
0.3
0.4
0.2
0.3
3.8
10.4
16.8
28.0
40.8
100.0
‐34
‐88
‐156
‐264
‐431
‐185
1.6
‐17.8
‐2.0
‐1.4
‐0.5
‐1.0
‐0.1
‐0.1
‐0.1
‐0.1
0.3
0.0
‐2.3
0.5
8.0
19.2
74.5
100.0
‐0.3
‐0.3
‐0.3
‐0.3
‐0.1
‐0.2
‐17.0
1.3
13.7
19.7
26.7
20.7
99.1
99.0
98.7
97.3
93.4
0.0
0.0
0.0
0.0
0.0
0.3
0.3
0.2
0.0
0.0
20.8
9.2
8.6
2.2
0.2
‐407
‐445
‐470
‐488
‐475
‐1.0
‐0.8
‐0.4
‐0.1
0.0
0.0
0.0
0.1
0.2
0.1
19.7
10.9
19.3
24.6
12.3
‐0.3
‐0.2
‐0.1
0.0
0.0
24.6
25.2
27.2
29.0
30.6
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
9,976
10,734
9,714
9,574
8,539
48,707
20.5
22.0
19.9
19.7
17.5
100.0
12,634
31,005
55,609
94,335
302,475
91,956
2.8
7.4
12.1
20.2
57.7
100.0
‐2,110
493
7,786
18,855
81,133
19,174
‐2.3
0.6
8.1
19.3
74.2
100.0
14,744
30,512
47,823
75,480
221,341
72,782
4.2
9.2
13.1
20.4
53.3
100.0
‐16.7
1.6
14.0
20.0
26.8
20.9
4,612
1,871
1,657
399
38
9.5
3.8
3.4
0.8
0.1
161,129
212,984
395,702
1,969,435
9,819,482
16.6
8.9
14.6
17.5
8.3
39,962
54,131
108,226
571,334
3,007,139
19.7
10.8
19.2
24.4
12.2
121,167
158,853
287,476
1,398,102
6,812,343
15.8
8.4
13.4
15.7
7.3
24.8
25.4
27.4
29.0
30.6
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
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 without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $11,888; 40% $22,737; 60% $38,728; 80% $67,694; 90% $99,454; 95% $141,130; 99% $361,878; 99.9% $1,491,280.
(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. 5‐Jan‐12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12‐0006
Temporary Payroll Tax Cut Continuation Act of 2011
Baseline: Current Law without the Temporary Payroll Tax Cut Extension for 2012
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table ‐ Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile
2,3
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
Share of Federal Taxes
Percent
Change (% Points)
Under the Proposal
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
4.3
10.7
33.3
47.1
52.4
29.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.4
2.3
12.5
27.4
57.4
100.0
‐1
‐3
‐16
‐43
‐94
‐29
‐1.3
‐1.3
‐1.0
‐0.6
‐0.2
‐0.3
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.5
3.3
11.7
84.5
100.0
0.0
0.0
0.0
‐0.1
0.0
0.0
0.7
1.2
4.2
10.5
22.3
16.1
49.3
53.7
56.2
55.3
64.9
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.0
0.0
17.7
17.6
16.5
5.7
0.8
‐65
‐105
‐123
‐147
‐198
‐0.4
‐0.4
‐0.2
0.0
0.0
0.0
0.0
0.0
0.1
0.1
11.2
13.2
21.2
38.9
21.2
‐0.1
‐0.1
‐0.1
0.0
0.0
15.3
18.9
22.3
27.6
30.7
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, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number (thousands)
Pre‐Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of Total
After‐Tax Income 5
Average (dollars)
Percent of Total
Average Federal Tax Rate 6
5,424
9,099
8,491
6,762
6,515
36,319
14.9
25.1
23.4
18.6
17.9
100.0
8,807
18,333
36,941
66,644
235,268
69,121
1.9
6.6
12.5
18.0
61.1
100.0
60
213
1,573
7,012
52,506
11,159
0.1
0.5
3.3
11.7
84.4
100.0
8,747
18,119
35,368
59,632
182,762
57,962
2.3
7.8
14.3
19.2
56.6
100.0
0.7
1.2
4.3
10.5
22.3
16.1
2,900
1,783
1,422
411
43
8.0
4.9
3.9
1.1
0.1
102,036
158,813
270,694
1,385,408
6,520,261
11.8
11.3
15.3
22.7
11.1
15,644
30,056
60,378
383,027
2,004,490
11.2
13.2
21.2
38.8
21.2
86,392
128,757
210,316
1,002,381
4,515,771
11.9
10.9
14.2
19.6
9.2
15.3
18.9
22.3
27.7
30.7
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐3).
* Less than 0.05
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 without the provisions of the Temporary Payroll Tax Cut Continuation Act of 2011. Proposal extends the existing OASDI tax rate for employees at 4.2 percent for the first two
months of calendar year 2012, subject to a cap of $18,350. Our estimates assume that wages, salaries and self‐employment incomes are uniformly distributed through the calendar year. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(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 2011 dollars): 20% $11,888; 40% $22,737; 60% $38,728; 80% $67,694; 90% $99,454; 95% $141,130; 99% $361,878; 99.9% $1,491,280.
(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.