4-May-05
http://www.taxpolicycenter.org
Preliminary Results
Table T05-0244. Option 2: Increase Point at Which EITC is Phased Out by 10 Percent
Number of Returns and Amount Reported Compared to Current Law, 2005 1
Cash Income Class
(thousands of 2005
2,3
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
Returns
Number Percent Of
(thousands)
Total
5,176
6,912
5,734
3,422
422
97
13
4
4
0
0
21,850
23.7
31.6
26.2
15.7
1.9
0.4
0.1
0.0
0.0
0.0
0.0
100.0
Current Law
Reported Credit
Amount ($ Percent Of
millions)
Total
6,002.2
19,216.3
12,504.6
3,517.1
423.0
131.7
10.8
3.9
8.3
0.0
0.0
41,908.2
14.3
45.9
29.8
8.4
1.0
0.3
0.0
0.0
0.0
0.0
0.0
100.0
Average
Credit ($)
1,160
2,780
2,181
1,028
1,002
1,361
829
1,092
2,220
4,769
2,100
1,918
Returns
Number Percent Of
Total
(thousands)
5,179
7,346
5,758
4,221
1,083
147
14
4
4
0
0
23,826
21.7
30.8
24.2
17.7
4.5
0.6
0.1
0.0
0.0
0.0
0.0
100.0
Proposal
Reported Credit
Amount ($ Percent Of
millions)
Total
6,019.4
19,394.6
13,630.1
5,141.6
800.3
179.7
16.3
4.3
8.8
0.0
0.0
45,289.2
13.3
42.8
30.1
11.4
1.8
0.4
0.0
0.0
0.0
0.0
0.0
100.0
Average
Credit ($)
1,162
2,640
2,367
1,218
739
1,223
1,151
1,105
2,350
4,769
2,434
1,901
Returns
Number
Percentage
(thousands)
3
434
24
799
661
50
1
0
0
0
0
1,976
0.1
6.3
0.4
23.4
156.6
51.8
9.3
10.2
0.0
0.0
0.0
9.0
Change Due to Proposal
Reported Credit
Amount ($
Percentage
millions)
17.2
178.3
1,125.5
1,624.5
377.3
48.0
5.6
0.4
0.5
0.0
0.0
3,381.0
0.3
0.9
9.0
46.2
89.2
36.4
51.6
11.5
5.8
0.0
15.9
8.1
Average Credit
Dollars
Percentage
3
-140
186
190
-263
-138
321
13
129
0
334
-17
0.2
-5.0
8.5
18.5
-26.3
-10.1
38.7
1.2
5.8
0.0
15.9
-0.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-2).
(1) Calendar year. Proposal reduces the EITC phasedown rates to ensure the credit is completely phased out at an income level that is 10 percent higher than under current law. For married couples filing a joint return, the rates would be 6.05, 13.34, and
17.87 percent for 0 children, 1 child, and 2 or more children, respectively. For other filing statuses, the rates would be 6.24 percent, 13.47 percent, and 18.02 percent.
(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. Tax units that are dependents of other taxpayers are excluded from the analysis.