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 T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2010
Summary Table
Percent of Tax Units
4
2,3
Cash Income Percentile
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 ($)
1
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.5
4.5
19.3
3.7
69.9
80.0
88.2
90.9
78.4
79.9
-10.2
-7.8
-4.5
-3.7
-2.3
-3.8
12.2
19.8
17.7
19.8
30.4
100.0
1,067
1,879
1,851
2,493
4,382
2,123
10.3
7.2
3.9
3.0
1.7
3.1
10.2
14.4
17.9
21.4
26.0
22.5
11.6
20.5
36.8
20.3
10.5
85.1
78.3
61.7
77.4
87.9
-2.8
-1.9
-0.8
-3.1
-3.8
10.4
4.6
2.7
12.8
7.2
2,942
2,768
1,935
35,710
200,555
2.2
1.5
0.6
2.3
2.8
23.6
25.7
25.7
28.3
30.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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) 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% $17,983, 40% $35,188, 60% $63,156, 80% $104,403, 90% $163,028, 95% $207,739, 99% $524,199, 99.9% $2,083,935.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2010 1
Detail 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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.5
4.5
19.3
3.7
69.9
80.0
88.2
90.9
78.4
79.9
-10.2
-7.8
-4.5
-3.7
-2.3
-3.8
12.2
19.8
17.7
19.8
30.4
100.0
1,067
1,879
1,851
2,493
4,382
2,123
-19,012.0
100.7
27.7
16.3
7.0
15.7
1.7
2.3
1.0
0.1
-5.1
0.0
1.6
5.3
11.0
19.1
62.8
100.0
10.3
7.2
3.9
3.0
1.7
3.1
10.2
14.4
17.9
21.4
26.0
22.5
11.6
20.5
36.8
20.3
10.5
85.1
78.3
61.7
77.4
87.9
-2.8
-1.9
-0.8
-3.1
-3.8
10.4
4.6
2.7
12.8
7.2
2,942
2,768
1,935
35,710
200,555
10.3
6.1
2.4
8.8
10.0
-0.7
-1.0
-2.0
-1.3
-0.6
15.0
10.9
15.6
21.3
10.7
2.2
1.5
0.6
2.3
2.8
23.6
25.7
25.7
28.3
30.5
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, 2010 1
Tax Units4
Cash Income Percentile2,3
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
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
37,187
34,258
31,069
25,876
22,637
153,472
24.2
22.3
20.2
16.9
14.8
100.0
10,410
25,965
47,675
82,850
257,308
69,715
-6
1,866
6,687
15,261
62,391
13,559
10,415
24,099
40,988
67,588
194,917
56,155
-0.1
7.2
14.0
18.4
24.3
19.5
3.6
8.3
13.8
20.0
54.4
100.0
4.5
9.6
14.8
20.3
51.2
100.0
0.0
3.1
10.0
19.0
67.9
100.0
11,487
5,443
4,545
1,163
117
7.5
3.6
3.0
0.8
0.1
132,754
188,238
321,162
1,560,914
7,239,490
28,445
45,588
80,503
405,449
2,008,917
104,309
142,650
240,659
1,155,464
5,230,573
21.4
24.2
25.1
26.0
27.8
14.3
9.6
13.6
17.0
7.9
13.9
9.0
12.7
15.6
7.1
15.7
11.9
17.6
22.7
11.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $17,983, 40%
$35,188, 60% $63,156, 80% $104,403, 90% $163,028, 95% $207,739, 99% $524,199, 99.9% $2,083,935.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table
4
Percent of Tax Units
2,3
Cash Income Percentile
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
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
2.3
17.2
3.7
75.3
74.8
85.1
90.3
79.1
79.9
-16.0
-8.8
-4.7
-3.2
-2.2
-3.8
15.5
19.1
16.2
17.2
31.7
100.0
1,656
1,955
1,730
1,925
3,580
2,123
-306.2
159.9
31.2
15.1
6.8
15.7
2.2
2.3
1.1
-0.1
-5.6
0.0
1.4
4.2
9.2
17.7
67.3
100.0
16.9
8.3
4.1
2.7
1.6
3.1
11.4
13.5
17.2
20.3
25.8
22.5
11.3
17.2
31.0
21.8
12.1
85.0
78.6
65.6
75.1
85.4
-2.5
-1.9
-1.1
-3.0
-3.8
9.7
5.2
3.9
12.9
7.3
2,190
2,347
2,181
29,826
172,271
8.9
6.2
3.2
8.5
9.9
-1.0
-1.1
-2.1
-1.5
-0.6
16.1
12.0
17.0
22.2
11.0
2.0
1.5
0.8
2.2
2.7
23.9
24.9
25.7
28.0
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, 2010 1
4
Tax Units
Cash Income Percentile2,3
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
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
30,566
31,898
30,561
29,161
28,841
153,472
19.9
20.8
19.9
19.0
18.8
100.0
9,795
23,503
42,386
72,129
217,694
69,715
-541
1,223
5,538
12,717
52,569
13,559
10,336
22,280
36,848
59,412
165,125
56,155
-5.5
5.2
13.1
17.6
24.2
19.5
2.8
7.0
12.1
19.7
58.7
100.0
3.7
8.3
13.1
20.1
55.3
100.0
-0.8
1.9
8.1
17.8
72.9
100.0
14,484
7,180
5,765
1,411
139
9.4
4.7
3.8
0.9
0.1
111,861
161,152
276,060
1,353,035
6,315,898
24,550
37,808
68,667
349,450
1,741,171
87,311
123,344
207,393
1,003,584
4,574,727
22.0
23.5
24.9
25.8
27.6
15.1
10.8
14.9
17.9
8.2
14.7
10.3
13.9
16.4
7.4
17.1
13.1
19.0
23.7
11.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $12,190, 40% $23,068, 60% $39,409, 80% $64,658, 90% $93,477, 95% $129,830, 99% $325,380, 99.9%
$1,292,047.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Single Tax Units
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.0
2.9
0.4
69.9
63.5
81.8
89.5
88.4
75.4
-7.6
-3.1
-2.4
-2.4
-2.8
-3.0
14.3
12.3
13.8
16.2
43.1
100.0
562
509
649
974
3,001
959
286.4
33.5
13.8
10.1
9.3
13.0
1.6
0.9
0.1
-0.5
-2.0
0.0
2.2
5.6
13.1
20.4
58.5
100.0
7.4
2.8
2.1
1.9
2.2
2.4
10.0
11.3
17.0
20.8
25.5
21.1
0.1
0.3
10.9
17.9
13.2
92.6
86.6
79.9
76.3
82.7
-3.1
-3.1
-2.5
-2.6
-3.4
15.6
8.0
9.5
10.0
5.3
1,916
2,648
3,617
17,099
101,519
10.8
10.5
8.2
7.8
9.1
-0.4
-0.2
-0.6
-0.8
-0.3
18.4
9.7
14.4
16.0
7.3
2.4
2.4
1.9
1.9
2.5
24.8
25.1
25.0
27.0
29.7
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, 2010 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
16,343
15,522
13,718
10,722
9,238
67,097
24.4
23.1
20.5
16.0
13.8
100.0
7,573
17,976
31,318
51,127
139,017
39,588
196
1,520
4,686
9,676
32,432
7,376
7,376
16,457
26,631
41,450
106,586
32,212
5,229
1,939
1,694
377
34
7.8
2.9
2.5
0.6
0.1
79,308
111,081
190,375
880,096
4,088,122
17,786
25,239
44,025
220,474
1,110,649
61,522
85,842
146,350
659,622
2,977,473
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.6
8.5
15.0
18.9
23.3
18.6
4.7
10.5
16.2
20.6
48.4
100.0
5.6
11.8
16.9
20.6
45.6
100.0
0.7
4.8
13.0
21.0
60.5
100.0
22.4
22.7
23.1
25.1
27.2
15.6
8.1
12.1
12.5
5.2
14.9
7.7
11.5
11.5
4.7
18.8
9.9
15.1
16.8
7.6
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $12,190, 40% $23,068, 60% $39,409, 80% $64,658, 90% $93,477, 95% $129,830, 99% $325,380,
99.9% $1,292,047.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Married Tax Units Filing Jointly
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
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
3.2
24.2
8.1
71.8
76.0
83.2
90.5
74.5
79.6
-16.9
-9.3
-5.4
-3.5
-2.0
-3.2
8.3
13.1
16.7
21.8
39.9
100.0
2,309
2,670
2,601
2,518
3,883
2,919
-292.5
221.7
41.3
17.2
6.1
12.2
0.9
1.3
1.3
0.7
-4.3
0.0
0.6
2.1
6.2
16.1
74.9
100.0
17.9
8.9
4.8
2.9
1.5
2.5
11.8
12.9
16.3
19.6
25.8
23.3
18.0
23.1
39.4
23.1
11.5
80.5
76.0
59.6
74.7
86.6
-2.3
-1.6
-0.7
-3.0
-3.8
11.2
6.4
3.4
18.9
10.6
2,383
2,260
1,557
33,963
192,826
8.2
5.3
1.9
8.7
10.1
-0.6
-0.9
-1.9
-0.8
-0.2
16.1
13.8
19.4
25.7
12.6
1.8
1.2
0.5
2.3
2.8
23.5
24.8
25.9
28.2
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 Adjusted for Family Size, 2010 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,298
8,603
11,285
15,152
18,029
60,097
10.5
14.3
18.8
25.2
30.0
100.0
12,904
30,028
54,754
87,591
260,413
115,873
-789
1,205
6,299
14,681
63,404
24,021
13,693
28,824
48,455
72,910
197,010
91,852
8,271
4,951
3,831
976
97
13.8
8.2
6.4
1.6
0.2
134,243
181,773
316,063
1,510,550
6,947,932
29,127
42,861
80,321
391,794
1,919,150
105,117
138,912
235,742
1,118,756
5,028,781
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.1
4.0
11.5
16.8
24.4
20.7
1.2
3.7
8.9
19.1
67.4
100.0
1.6
4.5
9.9
20.0
64.4
100.0
-0.3
0.7
4.9
15.4
79.2
100.0
21.7
23.6
25.4
25.9
27.6
15.9
12.9
17.4
21.2
9.7
15.8
12.5
16.4
19.8
8.8
16.7
14.7
21.3
26.5
12.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $12,190, 40% $23,068, 60% $39,409, 80% $64,658, 90% $93,477, 95% $129,830, 99% $325,380,
99.9% $1,292,047.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Head of Household Tax Units
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
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.8
16.1
0.8
89.4
96.3
97.1
97.1
81.9
93.3
-25.0
-15.6
-7.2
-4.5
-2.3
-10.3
32.6
37.9
16.9
8.4
4.0
100.0
3,494
4,229
2,838
2,620
3,026
3,453
-179.2
806.2
47.0
18.8
7.5
82.3
21.5
15.4
-5.8
-12.9
-18.3
0.0
6.5
19.2
23.9
24.1
26.2
100.0
29.0
15.3
6.2
3.6
1.8
9.2
12.8
17.2
19.4
22.9
25.6
20.3
8.3
27.9
33.5
20.9
13.0
88.8
71.9
66.5
75.9
83.7
-2.8
-1.8
-1.5
-2.8
-3.3
1.9
0.6
0.6
1.0
0.5
2,258
2,008
3,067
25,388
139,645
9.6
5.3
5.1
7.9
8.6
-6.4
-3.6
-3.8
-4.4
-2.0
9.7
4.9
5.2
6.4
3.0
2.2
1.3
1.2
2.1
2.4
24.7
26.3
23.8
28.2
30.1
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, 2010 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Number
(thousands)
Percent of
Total
7,663
7,353
4,898
2,645
1,095
23,770
32.2
30.9
20.6
11.1
4.6
100.0
12,034
27,649
45,701
72,314
170,177
37,673
-1,950
525
6,042
13,925
40,502
4,196
687
224
150
34
3
2.9
0.9
0.6
0.1
0.0
103,894
151,119
265,318
1,230,691
5,852,872
23,439
37,743
60,058
321,251
1,620,400
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
13,984
27,124
39,659
58,389
129,675
33,477
-16.2
1.9
13.2
19.3
23.8
11.1
10.3
22.7
25.0
21.4
20.8
100.0
13.5
25.1
24.4
19.4
17.8
100.0
-15.0
3.9
29.7
36.9
44.5
100.0
80,455
113,377
205,260
909,440
4,232,472
22.6
25.0
22.6
26.1
27.7
8.0
3.8
4.4
4.6
2.0
6.9
3.2
3.9
3.8
1.7
16.1
8.5
9.0
10.8
5.0
Average AfterTax Income5
(Dollars)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $12,190, 40% $23,068, 60% $39,409, 80% $64,658, 90% $93,477, 95% $129,830, 99% $325,380,
99.9% $1,292,047.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Tax Units with Children
4
Percent of Tax Units
2,3
Cash Income Percentile
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
Share of Federal Taxes
Dollars
Percent
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
1.5
16.1
3.1
94.5
99.5
99.7
98.4
83.8
95.2
-27.6
-16.6
-7.9
-4.9
-2.5
-6.2
19.9
24.2
18.1
16.9
20.6
100.0
4,302
5,149
3,904
3,760
5,307
4,440
-173.3
1,579.9
51.2
21.3
7.3
25.7
4.7
4.9
1.9
-0.7
-10.7
0.0
1.7
5.3
11.0
19.8
62.2
100.0
32.9
16.5
6.8
4.0
1.9
5.0
13.9
17.5
20.2
22.7
27.7
24.5
8.2
21.5
32.7
10.2
6.9
91.8
78.4
67.1
89.1
92.9
-3.0
-1.9
-1.1
-3.8
-4.1
7.2
2.9
2.1
8.5
4.3
3,560
2,872
2,963
48,646
244,727
9.6
5.6
2.9
9.9
10.2
-2.5
-2.1
-3.4
-2.8
-1.3
16.7
10.9
15.2
19.4
9.4
2.3
1.4
0.8
2.7
2.9
26.1
26.4
27.6
30.3
31.6
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, 2010 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Number
(thousands)
Percent of
Total
9,976
10,127
10,010
9,708
8,363
48,527
20.6
20.9
20.6
20.0
17.2
100.0
13,091
31,283
57,142
94,671
282,936
88,512
-2,483
326
7,631
17,693
73,100
17,285
4,339
2,136
1,512
377
37
8.9
4.4
3.1
0.8
0.1
155,933
204,142
384,102
1,786,692
8,353,518
37,062
51,071
103,052
492,914
2,397,622
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
15,574
30,958
49,511
76,978
209,836
71,227
-19.0
1.0
13.4
18.7
25.8
19.5
3.0
7.4
13.3
21.4
55.1
100.0
4.5
9.1
14.3
21.6
50.8
100.0
-3.0
0.4
9.1
20.5
72.9
100.0
118,870
153,070
281,050
1,293,778
5,955,895
23.8
25.0
26.8
27.6
28.7
15.8
10.2
13.5
15.7
7.3
14.9
9.5
12.3
14.1
6.5
19.2
13.0
18.6
22.1
10.7
Average AfterTax Income5
(Dollars)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $12,190, 40% $23,068, 60% $39,409, 80% $64,658, 90% $93,477, 95% $129,830, 99% $325,380, 99.9%
$1,292,047.
(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.
18-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0077
Implement a Simplified Tax System
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2010 1
Detail Table - Elderly Tax Units
4
Percent of Tax Units
2,3
Cash Income Percentile
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
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
4.1
28.1
6.0
18.2
20.0
35.5
61.4
58.2
37.4
-1.7
-0.7
-0.8
-1.2
-1.5
-1.3
3.4
4.9
7.7
17.6
66.5
100.0
164
138
292
724
2,711
758
132.7
24.9
18.3
11.6
5.8
7.4
0.2
0.2
0.3
0.4
-1.2
0.0
0.4
1.7
3.4
11.6
82.8
100.0
1.7
0.7
0.8
1.1
1.2
1.1
3.0
3.4
5.0
10.6
21.3
15.9
19.8
26.8
40.7
36.3
18.6
61.6
59.1
51.5
59.1
78.4
-1.3
-1.2
-0.6
-2.3
-3.9
11.3
9.1
7.4
38.8
28.2
1,106
1,440
1,182
21,647
157,153
7.7
5.5
2.3
7.6
11.1
0.0
-0.2
-1.1
0.1
0.7
10.8
11.8
22.3
37.9
19.4
1.1
1.0
0.5
1.8
2.9
15.6
18.5
21.0
25.4
28.7
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, 2010 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
4,539
7,785
5,833
5,369
5,417
29,160
15.6
26.7
20.0
18.4
18.6
100.0
9,713
20,134
37,705
66,000
230,749
69,393
123
553
1,596
6,240
46,532
10,284
9,589
19,582
36,109
59,760
184,217
59,109
2,256
1,390
1,375
396
40
7.7
4.8
4.7
1.4
0.1
98,991
148,120
247,873
1,212,770
5,487,716
14,370
25,997
50,918
286,813
1,415,169
84,621
122,123
196,955
925,957
4,072,547
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.3
2.7
4.2
9.5
20.2
14.8
2.2
7.8
10.9
17.5
61.8
100.0
2.5
8.8
12.2
18.6
57.9
100.0
0.2
1.4
3.1
11.2
84.1
100.0
14.5
17.6
20.5
23.7
25.8
11.0
10.2
16.8
23.7
10.8
11.1
9.9
15.7
21.3
9.4
10.8
12.1
23.3
37.8
18.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) 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% $12,190, 40% $23,068, 60% $39,409, 80% $64,658, 90% $93,477, 95% $129,830, 99% $325,380, 99.9%
$1,292,047.
(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.