18-Feb-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 T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010
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
0.0
0.0
0.0
0.1
0.5
0.9
5.7
13.4
36.0
22.9
15.6
3.7
With Tax
Increase
69.3
68.2
79.6
86.0
88.4
90.5
90.4
83.9
62.6
74.9
82.3
79.9
1
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
-12.2
-9.5
-7.9
-6.0
-4.7
-4.0
-3.6
-2.6
-0.9
-2.1
-3.5
-3.8
4.3
11.1
11.5
9.3
6.9
13.3
11.3
16.2
3.0
3.1
9.9
100.0
732
1,440
1,855
1,893
1,830
2,117
2,560
2,885
1,895
11,060
78,275
2,123
Average Federal Tax Rate 5
Change (%
Points)
12.4
9.4
7.4
5.4
4.0
3.4
2.9
2.0
0.6
1.6
2.6
3.1
Under the
Proposal
11.0
10.6
14.0
16.6
17.8
19.6
21.5
24.3
25.7
25.7
29.4
22.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline:
28.1
Proposal: 0.0
(1) Calendar year. Baseline is current law. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for
dependents, and no personal credits.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010
Detail Table
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
0.0
0.0
0.0
0.1
0.5
0.9
5.7
13.4
36.0
22.9
15.6
3.7
69.3
68.2
79.6
86.0
88.4
90.5
90.4
83.9
62.6
74.9
82.3
79.9
Percent
Change in
After-Tax
4
Income
Share of Total
Federal Tax
Change
-12.2
-9.5
-7.9
-6.0
-4.7
-4.0
-3.6
-2.6
-0.9
-2.1
-3.5
-3.8
4.3
11.1
11.5
9.3
6.9
13.3
11.3
16.2
3.0
3.1
9.9
100.0
Average Federal Tax Change
Dollars
Percent
732
1,440
1,855
1,893
1,830
2,117
2,560
2,885
1,895
11,060
78,275
2,123
-897.1
791.6
111.6
47.4
29.3
20.6
15.7
9.1
2.6
6.6
9.5
15.7
1
Share of Federal Taxes
Change (%
Points)
0.6
1.5
1.3
0.8
0.4
0.4
0.0
-1.6
-2.1
-0.6
-0.9
0.0
Under the
Proposal
0.5
1.7
3.0
3.9
4.1
10.5
11.2
26.3
16.5
6.7
15.5
100.0
5
Average Federal Tax Rate
Change (%
Points)
12.4
9.4
7.4
5.4
4.0
3.4
2.9
2.0
0.6
1.6
2.6
3.1
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2010
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)
19,232
25,210
20,273
15,926
12,195
20,409
14,353
18,275
5,216
900
414
153,472
Percent of
Total
12.5
16.4
13.2
10.4
8.0
13.3
9.4
11.9
3.4
0.6
0.3
100.0
Average
Income
(Dollars)
5,904
15,341
25,184
35,371
45,433
63,167
87,722
142,484
297,409
700,195
3,056,945
69,715
Average
Federal Tax
Burden
(Dollars)
-82
182
1,662
3,994
6,253
10,264
16,286
31,695
74,406
168,857
820,752
13,559
Average After4
Tax Income
(Dollars)
5,986
15,159
23,521
31,377
39,180
52,903
71,436
110,789
223,002
531,338
2,236,192
56,155
Average
Federal Tax
5
Rate
-1.4
1.2
6.6
11.3
13.8
16.3
18.6
22.2
25.0
24.1
26.9
19.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.1
3.6
4.8
5.3
5.2
12.1
11.8
24.3
14.5
5.9
11.8
100.0
1.3
4.4
5.5
5.8
5.5
12.5
11.9
23.5
13.5
5.6
10.7
100.0
-0.1
0.2
1.6
3.1
3.7
10.1
11.2
27.8
18.7
7.3
16.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 28.1
Proposal: 0.0
(1) Calendar year. Baseline is current law. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for dependents, and no personal credits.
(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.
Under the
Proposal
11.0
10.6
14.0
16.6
17.8
19.6
21.5
24.3
25.7
25.7
29.4
22.5
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010 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
0.0
0.0
0.1
0.1
0.0
0.0
0.2
2.4
23.9
17.1
14.6
0.4
68.0
60.2
76.0
85.9
89.4
91.1
91.8
84.8
70.7
76.7
81.3
75.4
Percent Change
in After-Tax
Income 4
-7.3
-3.5
-2.9
-2.6
-2.2
-2.9
-3.2
-3.0
-1.8
-2.0
-3.2
-3.0
Share of Total
Federal Tax
Change
8.6
11.9
10.4
8.9
7.0
16.0
11.3
13.4
4.3
2.1
6.1
100.0
Average Federal Tax Change
Dollars
Percent
410
500
635
761
825
1,417
2,128
3,164
4,081
11,003
69,589
959
204.3
50.0
21.1
13.2
10.1
11.1
10.8
10.0
5.8
7.1
8.9
13.0
Share of Federal Taxes
Change (%
Points)
0.9
1.0
0.5
0.0
-0.2
-0.3
-0.3
-0.5
-0.6
-0.2
-0.3
0.0
Under the
Proposal
Average Federal Tax Rate 5
Change (%
Points)
1.5
4.1
6.9
8.7
8.7
18.4
13.2
17.0
9.1
3.6
8.6
100.0
7.0
3.3
2.5
2.2
1.8
2.3
2.5
2.3
1.4
1.6
2.4
2.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2010 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
13,491
15,275
10,557
7,505
5,457
7,250
3,401
2,721
682
121
56
67,097
20.1
22.8
15.7
11.2
8.1
10.8
5.1
4.1
1.0
0.2
0.1
100.0
Average
Income
(Dollars)
5,823
15,188
25,082
35,408
45,383
62,323
86,929
137,783
299,180
699,028
2,928,936
39,588
Average
Federal Tax
Burden
(Dollars)
201
999
3,012
5,750
8,135
12,804
19,639
31,804
70,362
156,156
781,013
7,376
Average AfterTax Income 4
(Dollars)
5,623
14,189
22,071
29,658
37,248
49,519
67,289
105,979
228,818
542,872
2,147,923
32,212
Average
Federal Tax
Rate 5
3.4
6.6
12.0
16.2
17.9
20.5
22.6
23.1
23.5
22.3
26.7
18.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
3.0
8.7
10.0
10.0
9.3
17.0
11.1
14.1
7.7
3.2
6.2
100.0
3.5
10.0
10.8
10.3
9.4
16.6
10.6
13.3
7.2
3.1
5.6
100.0
0.6
3.1
6.4
8.7
9.0
18.8
13.5
17.5
9.7
3.8
8.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for dependents, and no personal credits.
(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.
Under the
Proposal
10.5
9.9
14.5
18.4
19.7
22.8
25.0
25.4
24.9
23.9
29.0
21.1
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010 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
0.0
0.0
0.0
0.1
0.0
0.2
7.5
15.2
37.7
23.9
15.7
8.1
55.5
68.2
71.3
75.0
82.0
88.9
89.6
83.9
61.4
74.6
82.5
79.6
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
-15.2
-11.5
-9.2
-7.1
-6.0
-4.4
-3.6
-2.5
-0.7
-2.1
-3.5
-3.2
1.1
4.7
6.4
6.0
5.9
13.8
14.4
24.0
3.8
4.7
15.0
100.0
Average Federal Tax Change
Dollars
Percent
800
1,854
2,306
2,386
2,512
2,472
2,657
2,855
1,534
11,043
77,572
2,919
-601.5
-590.8
688.1
132.5
65.1
30.4
17.9
9.0
2.0
6.5
9.6
12.2
Share of Federal Taxes
Change (%
Points)
0.1
0.5
0.7
0.6
0.5
0.9
0.5
-0.9
-2.1
-0.5
-0.4
0.0
Under the
Proposal
Average Federal Tax Rate 5
Change (%
Points)
0.1
0.4
0.8
1.1
1.6
6.4
10.3
31.4
20.7
8.4
18.6
100.0
15.6
11.8
9.1
6.7
5.5
3.9
3.0
2.0
0.5
1.6
2.6
2.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2010 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
2,455
4,417
4,861
4,389
4,097
9,767
9,535
14,745
4,367
747
340
60,097
4.1
7.4
8.1
7.3
6.8
16.3
15.9
24.5
7.3
1.2
0.6
100.0
Average
Income
(Dollars)
5,141
15,755
25,306
35,520
45,591
64,107
88,206
143,882
297,347
701,119
3,002,884
115,873
Average
Federal Tax
Burden
(Dollars)
-133
-314
335
1,801
3,860
8,145
14,834
31,655
75,284
171,171
806,032
24,021
Average AfterTax Income 4
(Dollars)
5,274
16,069
24,970
33,718
41,731
55,962
73,372
112,226
222,063
529,948
2,196,852
91,852
Average
Federal Tax
Rate 5
-2.6
-2.0
1.3
5.1
8.5
12.7
16.8
22.0
25.3
24.4
26.8
20.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.2
1.0
1.8
2.2
2.7
9.0
12.1
30.5
18.7
7.5
14.7
100.0
0.2
1.3
2.2
2.7
3.1
9.9
12.7
30.0
17.6
7.2
13.5
100.0
0.0
-0.1
0.1
0.6
1.1
5.5
9.8
32.3
22.8
8.9
19.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for dependents, and no personal credits.
(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.
Under the
Proposal
13.0
9.8
10.4
11.8
14.0
16.6
19.8
24.0
25.8
26.0
29.4
23.3
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010 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
0.0
0.1
0.0
0.0
0.0
0.2
3.0
15.8
34.9
16.5
15.2
0.8
85.4
89.8
95.8
97.9
98.6
98.1
96.1
84.0
64.7
81.0
82.3
93.3
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
-25.9
-22.5
-16.9
-11.5
-7.9
-5.4
-4.6
-2.8
-1.3
-2.2
-3.2
-10.3
8.0
24.8
23.7
16.5
8.8
9.9
4.6
2.3
0.4
0.3
0.7
100.0
Average Federal Tax Change
Dollars
2,111
3,893
4,300
3,725
3,136
2,799
3,170
2,763
2,843
11,434
66,335
3,453
Percent
-162.1
-206.3
-1,953.0
135.1
54.9
26.8
18.1
8.8
4.2
7.5
8.5
82.3
Share of Federal Taxes
Change (%
Points)
5.4
15.6
11.1
2.9
-2.0
-9.3
-7.3
-8.7
-3.6
-1.4
-2.9
0.0
Under the
Proposal
Average Federal Tax Rate 5
Change (%
Points)
1.4
5.8
10.1
13.0
11.2
21.3
13.5
12.8
4.8
1.9
4.2
100.0
30.8
25.2
17.0
10.6
6.9
4.5
3.7
2.1
1.0
1.7
2.3
9.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2010 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
3,099
5,220
4,519
3,634
2,292
2,913
1,183
683
123
21
9
23,770
13.0
22.0
19.0
15.3
9.6
12.3
5.0
2.9
0.5
0.1
0.0
100.0
Average
Income
(Dollars)
6,866
15,424
25,284
35,054
45,331
62,050
86,451
131,866
292,662
672,994
2,883,601
37,673
Average
Federal Tax
Burden
(Dollars)
-1,303
-1,887
-220
2,758
5,715
10,465
17,545
31,417
68,052
153,525
783,066
4,196
Average AfterTax Income 4
(Dollars)
8,168
17,311
25,504
32,295
39,616
51,585
68,906
100,449
224,610
519,469
2,100,535
33,477
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
-19.0
-12.2
-0.9
7.9
12.6
16.9
20.3
23.8
23.3
22.8
27.2
11.1
2.4
9.0
12.8
14.2
11.6
20.2
11.4
10.1
4.0
1.6
2.9
100.0
3.2
11.4
14.5
14.8
11.4
18.9
10.2
8.6
3.5
1.4
2.4
100.0
-4.1
-9.9
-1.0
10.1
13.1
30.6
20.8
21.5
8.4
3.3
7.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for dependents, and no personal credits.
(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.
Under the
Proposal
11.8
13.0
16.1
18.5
19.5
21.4
24.0
25.9
24.2
24.5
29.5
20.3
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010
Detail Table - Tax Units with Children
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
0.0
0.0
0.0
0.0
0.1
0.2
1.3
6.9
31.0
12.9
8.7
3.1
86.5
96.9
99.1
99.6
99.6
99.6
98.6
93.1
68.9
86.4
90.9
95.2
Percent
Change in
After-Tax
4
Income
Share of Total
Federal Tax
Change
-30.1
-26.6
-20.1
-13.8
-9.9
-7.1
-5.5
-3.5
-1.1
-2.8
-4.0
-6.2
4.2
13.5
13.8
10.4
7.2
12.4
11.1
15.4
2.7
2.7
6.6
100.0
Average Federal Tax Change
Dollars
Percent
2,431
4,866
5,344
4,612
4,047
3,879
4,007
3,847
2,355
14,615
86,993
4,440
-155.6
-181.3
-442.3
259.5
87.4
41.8
25.8
11.8
3.0
8.1
10.0
25.7
1
Share of Federal Taxes
Change (%
Points)
1.0
3.2
3.0
1.9
1.0
1.0
0.0
-3.7
-4.1
-1.2
-2.1
0.0
Under the
Proposal
0.3
1.2
2.2
2.9
3.2
8.6
11.0
29.7
18.7
7.2
14.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
37.3
31.2
21.1
13.1
8.9
6.1
4.6
2.7
0.8
2.1
2.8
5.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2010
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
3,690
5,996
5,563
4,833
3,844
6,876
5,941
8,597
2,442
393
164
48,527
7.6
12.4
11.5
10.0
7.9
14.2
12.2
17.7
5.0
0.8
0.3
100.0
Average
Income
(Dollars)
6,525
15,600
25,332
35,234
45,427
63,634
88,048
143,922
297,068
700,113
3,064,969
88,512
Average
Federal Tax
Burden
(Dollars)
-1,562
-2,685
-1,208
1,777
4,633
9,270
15,529
32,611
78,186
179,621
867,680
17,285
Average After4
Tax Income
(Dollars)
8,087
18,285
26,541
33,457
40,793
54,364
72,519
111,311
218,882
520,492
2,197,289
71,227
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-23.9
-17.2
-4.8
5.0
10.2
14.6
17.6
22.7
26.3
25.7
28.3
19.5
0.6
2.2
3.3
4.0
4.1
10.2
12.2
28.8
16.9
6.4
11.7
100.0
0.9
3.2
4.3
4.7
4.5
10.8
12.5
27.7
15.5
5.9
10.4
100.0
-0.7
-1.9
-0.8
1.0
2.1
7.6
11.0
33.4
22.8
8.4
17.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for dependents, and no personal credits.
(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.
Under the
Proposal
13.3
14.0
16.3
18.1
19.1
20.7
22.2
25.3
27.1
27.7
31.2
24.5
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0076
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2010
Detail Table - Elderly 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
0.0
0.0
0.0
0.0
0.3
0.9
13.6
27.6
49.2
42.2
25.8
6.0
17.2
15.0
25.8
33.8
43.5
62.0
66.2
61.1
46.9
54.8
71.1
37.4
Percent
Change in
After-Tax
4
Income
-1.8
-0.6
-0.7
-0.7
-0.9
-1.4
-1.4
-1.3
-0.3
-0.8
-3.3
-1.3
Share of Total
Federal Tax
Change
1.4
2.8
3.2
2.8
3.8
14.7
11.5
19.3
2.8
4.0
33.8
100.0
Average Federal Tax Change
Dollars
Percent
116
91
158
223
406
784
1,101
1,522
595
4,372
74,063
758
109.4
30.9
18.2
14.9
16.3
14.4
10.3
6.2
1.0
2.9
10.0
7.4
1
Share of Federal Taxes
Change (%
Points)
0.1
0.1
0.1
0.1
0.1
0.5
0.2
-0.2
-1.3
-0.4
0.6
0.0
Under the
Proposal
0.2
0.8
1.4
1.5
1.8
8.0
8.5
22.5
19.9
9.8
25.5
100.0
5
Average Federal Tax Rate
Change (%
Points)
1.8
0.6
0.6
0.6
0.9
1.3
1.3
1.1
0.2
0.6
2.5
1.1
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2010
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
2,580
6,648
4,517
2,742
2,038
4,156
2,313
2,802
1,021
204
101
29,160
8.9
22.8
15.5
9.4
7.0
14.3
7.9
9.6
3.5
0.7
0.4
100.0
Average
Income
(Dollars)
6,461
15,269
24,959
35,251
45,587
62,690
87,183
142,175
297,063
694,961
2,965,312
69,393
Average
Federal Tax
Burden
(Dollars)
106
295
866
1,500
2,489
5,444
10,687
24,380
62,210
150,540
739,230
10,284
Average After4
Tax Income
(Dollars)
6,355
14,974
24,093
33,751
43,098
57,246
76,495
117,795
234,852
544,421
2,226,082
59,109
Average
Federal Tax
5
Rate
1.7
1.9
3.5
4.3
5.5
8.7
12.3
17.2
20.9
21.7
24.9
14.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
5.0
5.6
4.8
4.6
12.9
10.0
19.7
15.0
7.0
14.8
100.0
1.0
5.8
6.3
5.4
5.1
13.8
10.3
19.2
13.9
6.4
13.0
100.0
0.1
0.7
1.3
1.4
1.7
7.6
8.2
22.8
21.2
10.2
24.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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. In the simplified tax system proposal, there are no itemized deductions, no alternative minimum tax, no exemptions for dependents, and no personal credits.
(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.
Under the
Proposal
3.5
2.5
4.1
4.9
6.4
9.9
13.5
18.2
21.1
22.3
27.4
15.9