9-Aug-10
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 T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary 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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
1.2
5.7
12.0
24.4
49.2
15.4
0.0
0.0
0.0
0.0
1.1
0.2
0.0
0.0
0.1
0.1
0.5
0.3
0.2
1.4
3.9
10.0
84.4
100.0
-1
-11
-34
-103
-989
-173
0.0
0.0
-0.1
-0.1
-0.4
-0.2
4.6
10.3
16.5
19.5
26.3
21.5
37.5
52.5
68.0
76.4
68.9
0.0
0.1
2.5
11.4
25.8
0.2
0.3
0.5
0.8
1.0
9.7
10.1
21.8
42.9
23.2
-225
-479
-1,281
-9,831
-52,887
-0.2
-0.2
-0.4
-0.5
-0.6
22.0
23.2
25.5
31.8
34.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal:4.0
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and
dependent care credit, and student loan interest deduction. Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in
the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would also repeal the 8 and 18 percent rate for gains on
assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail Table
Cash Income
Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units 4
With Tax Cut
With Tax
Increase
Percent
Change in
After-Tax
Income 5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
1.2
5.7
12.0
24.4
49.2
15.4
0.0
0.0
0.0
0.0
1.1
0.2
0.0
0.0
0.1
0.1
0.5
0.3
0.2
1.4
3.9
10.0
84.4
100.0
-1
-11
-34
-103
-989
-173
-0.2
-0.4
-0.4
-0.6
-1.3
-1.1
0.0
0.0
0.1
0.1
-0.2
0.0
0.8
4.0
10.6
17.9
66.5
100.0
0.0
0.0
-0.1
-0.1
-0.4
-0.2
4.6
10.3
16.5
19.5
26.3
21.5
37.5
52.5
68.0
76.4
68.9
0.0
0.1
2.5
11.4
25.8
0.2
0.3
0.5
0.8
1.0
9.7
10.1
21.8
42.9
23.2
-225
-479
-1,281
-9,831
-52,887
-0.7
-1.0
-1.4
-1.7
-1.8
0.0
0.0
-0.1
-0.2
-0.1
13.8
10.1
15.9
26.7
13.6
-0.2
-0.2
-0.4
-0.5
-0.6
22.0
23.2
25.5
31.8
34.9
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
Cash Income
Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units4
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
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
537
2,982
8,651
17,417
74,644
16,570
11,063
25,871
43,572
71,561
205,585
59,599
4.6
10.3
16.6
19.6
26.6
21.8
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.8
20.3
51.1
100.0
0.8
4.0
10.6
17.8
66.7
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
30,600
45,971
89,249
589,571
2,972,376
107,785
150,577
256,326
1,235,617
5,394,898
22.1
23.4
25.8
32.3
35.5
13.5
9.4
13.4
18.1
8.4
13.5
9.2
12.7
15.7
6.9
13.8
10.1
15.9
26.9
13.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 4.0
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would
also repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $19,356, 40%
$37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail 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
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.4
3.8
9.6
20.9
45.5
15.4
0.0
0.0
0.0
0.0
0.9
0.2
0.0
0.0
0.1
0.1
0.5
0.3
0.0
0.6
2.5
7.6
89.3
100.0
0
-5
-22
-69
-814
-173
-0.1
-0.2
-0.3
-0.5
-1.3
-1.1
0.0
0.0
0.1
0.1
-0.2
0.0
0.1
2.8
8.5
17.1
71.4
100.0
0.0
0.0
-0.1
-0.1
-0.4
-0.2
1.0
8.5
15.1
18.9
26.1
21.5
33.4
48.1
65.3
75.9
70.3
0.0
0.0
1.8
10.3
24.1
0.2
0.3
0.5
0.8
1.0
8.9
9.8
24.7
45.9
24.6
-161
-356
-1,135
-8,719
-47,071
-0.6
-0.9
-1.5
-1.7
-1.8
0.1
0.0
-0.1
-0.2
-0.1
15.1
11.4
17.1
27.8
14.1
-0.1
-0.2
-0.4
-0.6
-0.6
22.1
23.3
25.2
31.5
34.6
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
Tax Units4
2,3
Cash Income Percentile
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
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
31,706
32,349
31,237
29,980
29,936
157,348
20.2
20.6
19.9
19.1
19.0
100.0
10,935
26,208
46,322
77,565
235,547
76,169
114
2,226
7,022
14,760
62,340
16,570
10,821
23,982
39,300
62,806
173,207
59,599
1.0
8.5
15.2
19.0
26.5
21.8
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.3
13.1
20.1
55.3
100.0
0.1
2.8
8.4
17.0
71.6
100.0
15,019
7,540
5,940
1,436
142
9.6
4.8
3.8
0.9
0.1
117,658
167,170
294,212
1,584,726
7,360,192
26,101
39,354
75,396
507,996
2,593,931
91,557
127,817
218,815
1,076,730
4,766,261
22.2
23.5
25.6
32.1
35.2
14.7
10.5
14.6
19.0
8.7
14.7
10.3
13.9
16.5
7.2
15.0
11.4
17.2
28.0
14.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 4.0
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would also
repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single Tax Units
Cash Income
Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units 4
With Tax Cut
With Tax
Increase
Percent
Change in
After-Tax
Income 5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
0.7
4.6
10.0
17.5
39.9
11.7
0.0
0.0
0.0
0.0
0.4
0.1
0.0
0.0
0.1
0.1
0.6
0.3
0.1
1.3
4.8
9.1
84.7
100.0
0
-6
-26
-59
-657
-108
0.0
-0.3
-0.4
-0.5
-1.6
-1.1
0.0
0.0
0.1
0.1
-0.3
0.0
1.5
5.0
12.5
20.6
60.2
100.0
0.0
0.0
-0.1
-0.1
-0.4
-0.3
7.1
10.7
17.1
21.0
27.1
21.7
28.6
42.1
61.7
75.6
69.0
0.0
0.0
0.5
8.7
23.6
0.2
0.4
0.8
1.0
1.2
9.7
11.9
27.8
35.4
16.7
-142
-373
-1,152
-7,290
-39,241
-0.7
-1.2
-2.1
-2.0
-2.0
0.1
0.0
-0.2
-0.2
-0.1
15.5
10.8
14.4
19.6
9.4
-0.2
-0.3
-0.6
-0.7
-0.8
23.9
25.0
25.7
33.5
37.3
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
Cash Income
2,3
Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
16,972
15,474
14,005
11,543
9,596
68,932
24.6
22.5
20.3
16.8
13.9
100.0
8,380
19,970
34,261
55,833
151,979
43,878
595
2,143
5,871
11,782
41,822
9,627
7,785
17,828
28,390
44,051
110,157
34,251
7.1
10.7
17.1
21.1
27.5
21.9
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.7
16.8
21.5
44.8
100.0
1.5
5.0
12.4
20.5
60.5
100.0
5,066
2,373
1,795
361
32
7.4
3.4
2.6
0.5
0.1
84,037
119,032
204,548
1,060,631
5,243,107
20,189
30,125
53,746
362,997
1,995,548
63,848
88,907
150,802
697,635
3,247,558
24.0
25.3
26.3
34.2
38.1
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.5
10.7
4.4
15.4
10.8
14.5
19.8
9.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would
also repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983,
99.9% $1,670,467.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Married Tax Units Filing Jointly
Cash Income
Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units 4
With Tax Cut
With Tax
Increase
Percent
Change in
After-Tax
Income 5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
0.0
4.9
11.6
25.5
49.9
24.3
0.0
0.0
0.0
0.0
1.1
0.3
0.0
0.0
0.1
0.1
0.4
0.3
0.0
0.3
1.5
6.9
91.3
100.0
0
-7
-25
-86
-915
-304
0.0
-0.3
-0.3
-0.5
-1.2
-1.1
0.0
0.0
0.0
0.1
-0.1
0.0
0.1
1.4
5.4
14.7
78.4
100.0
0.0
0.0
0.0
-0.1
-0.3
-0.2
0.8
7.9
13.5
17.8
25.8
22.4
37.8
51.8
68.1
76.5
71.2
0.0
0.0
2.3
10.8
24.1
0.2
0.2
0.5
0.8
1.0
8.6
8.9
23.8
50.0
27.4
-180
-344
-1,139
-9,198
-50,011
-0.6
-0.8
-1.3
-1.7
-1.8
0.1
0.0
-0.1
-0.2
-0.1
15.1
12.3
19.1
31.8
15.9
-0.1
-0.2
-0.3
-0.5
-0.6
21.3
22.8
25.2
31.0
34.1
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
Cash Income
2,3
Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
6,622
8,956
11,470
15,032
18,609
61,357
10.8
14.6
18.7
24.5
30.3
100.0
14,526
33,405
59,671
95,023
281,842
126,020
118
2,631
8,102
17,030
73,692
28,474
14,408
30,774
51,569
77,992
208,150
97,546
0.8
7.9
13.6
17.9
26.2
22.6
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.6
64.7
100.0
0.0
1.4
5.3
14.7
78.5
100.0
8,860
4,843
3,890
1,015
102
14.4
7.9
6.3
1.7
0.2
138,312
192,091
337,723
1,748,464
7,890,377
29,689
44,160
86,066
551,172
2,736,568
108,623
147,931
251,656
1,197,293
5,153,809
21.5
23.0
25.5
31.5
34.7
15.9
12.0
17.0
23.0
10.5
16.1
12.0
16.4
20.3
8.8
15.1
12.2
19.2
32.0
16.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would
also repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983,
99.9% $1,670,467.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Head of Household Tax Units
Cash Income
Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units 4
With Tax Cut
With Tax
Increase
Percent
Change in
After-Tax
Income 5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
0.0
0.9
4.8
11.4
26.9
3.9
0.0
0.0
0.0
0.0
0.6
0.0
0.0
0.0
0.0
0.1
0.3
0.1
0.0
0.7
5.7
13.7
79.9
100.0
0
-1
-7
-31
-407
-26
0.0
0.0
-0.1
-0.2
-0.9
-0.4
0.0
0.0
0.1
0.1
-0.2
0.0
-5.3
9.6
27.4
29.4
38.8
100.0
0.0
0.0
0.0
0.0
-0.2
-0.1
-7.2
6.0
15.3
19.7
25.0
13.9
19.0
34.1
46.2
68.5
62.1
0.0
0.2
1.8
11.4
26.6
0.1
0.3
0.4
0.6
0.5
14.5
13.7
24.1
27.7
11.3
-114
-373
-882
-5,291
-24,507
-0.4
-1.0
-1.3
-1.2
-1.0
0.0
0.0
-0.1
-0.1
0.0
14.5
5.9
8.0
10.5
4.9
-0.1
-0.2
-0.3
-0.4
-0.4
22.8
23.3
23.7
31.7
34.8
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
Cash Income
2,3
Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
4
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
7,840
7,497
5,095
2,777
1,242
24,547
31.9
30.5
20.8
11.3
5.1
100.0
13,490
30,617
50,275
76,881
178,521
41,760
-966
1,831
7,687
15,156
44,996
5,841
14,455
28,786
42,588
61,725
133,525
35,918
-7.2
6.0
15.3
19.7
25.2
14.0
10.3
22.4
25.0
20.8
21.6
100.0
12.9
24.5
24.6
19.4
18.8
100.0
-5.3
9.6
27.3
29.4
39.0
100.0
805
232
173
33
3
3.3
0.9
0.7
0.1
0.0
112,763
154,893
278,418
1,423,600
6,950,503
25,848
36,461
66,893
456,694
2,445,617
86,915
118,432
211,525
966,906
4,504,886
22.9
23.5
24.0
32.1
35.2
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.1
3.6
1.5
14.5
5.9
8.1
10.5
5.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1). Calendar year. Baseline is current law plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would
also repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983,
99.9% $1,670,467.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Tax Units with Children
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
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
1.4
8.7
19.4
47.6
14.0
0.0
0.0
0.0
0.0
1.4
0.2
0.0
0.0
0.0
0.1
0.3
0.2
0.0
0.2
2.7
8.5
88.5
100.0
0
-1
-17
-54
-666
-127
0.0
-0.1
-0.2
-0.3
-0.8
-0.6
0.0
0.0
0.0
0.1
-0.1
0.0
-1.3
2.2
9.9
19.7
69.4
100.0
0.0
0.0
0.0
-0.1
-0.2
-0.1
-8.9
6.1
15.4
19.4
27.1
21.2
36.6
52.6
65.8
74.0
66.6
0.0
0.1
3.9
13.1
27.9
0.1
0.2
0.3
0.6
0.7
9.1
9.4
22.2
47.8
25.7
-130
-298
-887
-8,002
-44,669
-0.4
-0.6
-0.8
-1.1
-1.3
0.0
0.0
0.0
-0.1
-0.1
15.8
10.7
16.9
26.1
12.6
-0.1
-0.1
-0.2
-0.4
-0.5
22.6
23.9
26.7
33.1
35.3
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
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
10,133
10,359
10,251
9,800
8,315
49,155
20.6
21.1
20.9
19.9
16.9
100.0
14,723
34,672
62,298
103,142
306,063
95,419
-1,303
2,104
9,619
20,050
83,507
20,329
16,026
32,568
52,679
83,091
222,556
75,090
-8.9
6.1
15.4
19.4
27.3
21.3
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.6
22.1
50.1
100.0
-1.3
2.2
9.9
19.7
69.5
100.0
4,398
1,976
1,567
374
36
9.0
4.0
3.2
0.8
0.1
157,496
224,546
400,356
2,088,455
9,839,694
35,785
53,957
107,610
699,746
3,513,564
121,711
170,589
292,746
1,388,708
6,326,130
22.7
24.0
26.9
33.5
35.7
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.4
14.1
6.2
15.8
10.7
16.9
26.2
12.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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 plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would also
repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.
9-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0198
Extend Lower Rates on Capital Gains and Qualified Dividends for Taxpayers Not in Top Two Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Elderly Tax Units
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
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.5
7.1
15.9
40.4
69.7
25.2
0.0
0.0
0.0
0.0
0.9
0.2
0.0
0.1
0.1
0.3
1.1
0.7
0.0
0.7
1.9
7.3
90.0
100.0
0
-11
-41
-168
-2,028
-414
0.0
-1.3
-1.6
-2.1
-3.1
-2.9
0.0
0.0
0.0
0.1
-0.2
0.0
0.3
1.7
3.5
10.2
84.2
100.0
0.0
-0.1
-0.1
-0.2
-0.8
-0.6
2.5
3.8
6.1
11.3
24.9
18.5
59.7
73.2
80.2
81.0
73.5
0.0
0.0
0.7
9.1
23.4
0.6
0.8
1.2
1.3
1.6
9.4
10.6
26.5
43.5
22.2
-490
-983
-2,407
-12,703
-66,241
-2.8
-3.2
-3.7
-2.8
-2.8
0.0
0.0
-0.2
0.0
0.0
9.8
9.4
20.5
44.5
22.5
-0.5
-0.6
-0.9
-0.9
-1.0
16.4
19.2
23.4
31.4
34.8
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
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
5,016
8,213
5,981
5,495
5,617
30,543
16.4
26.9
19.6
18.0
18.4
100.0
10,899
22,528
41,094
70,238
257,048
75,737
271
871
2,534
8,133
66,092
14,404
10,628
21,657
38,560
62,105
190,956
61,333
2.5
3.9
6.2
11.6
25.7
19.0
2.4
8.0
10.6
16.7
62.4
100.0
2.9
9.5
12.3
18.2
57.3
100.0
0.3
1.6
3.4
10.2
84.4
100.0
2,427
1,362
1,394
434
42
8.0
4.5
4.6
1.4
0.1
105,444
153,103
267,882
1,396,961
6,520,091
17,813
30,408
65,112
451,458
2,333,598
87,631
122,695
202,770
945,503
4,186,493
16.9
19.9
24.3
32.3
35.8
11.1
9.0
16.1
26.2
12.0
11.4
8.9
15.1
21.9
9.5
9.8
9.4
20.6
44.5
22.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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 plus an AMT patch; extension of the 10, 25, and 28 percent tax rates, marriage penalty relief, child tax credit, child and dependent care credit, and student loan interest deduction.
Proposal would extend the 15 percent rate on capital gains and qualified dividends (0 percent for those in the bottom two tax brackets) but would retain a 20 percent rate for those in the top two tax brackets. Proposal would also
repeal the 8 and 18 percent rate for gains on assets held for five years or more (which could result in a tax increase for high-income taxpayers).
(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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.