6-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 T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax Brackets
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Summary Table
Percent of Tax Units4
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 ($)
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
10.0
1.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-958
-142
0.0
0.0
0.0
0.0
-0.3
-0.2
4.6
10.3
16.4
19.3
25.7
21.2
0.0
0.3
29.8
77.3
93.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.4
2.2
0.0
0.0
7.9
92.1
63.1
0
-2
-376
-17,276
-117,483
0.0
0.0
-0.1
-1.0
-1.4
21.8
23.0
25.0
30.7
33.5
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).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income
provisions relating to dividends and capital gains, the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory
income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6 percent tax brackets, where the 36
percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married
couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for
heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax Brackets
Distribution of Federal Tax Change by Cash Income Percentile, 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
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
10.0
1.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-958
-142
0.0
0.0
0.0
0.0
-1.3
-0.9
0.0
0.0
0.1
0.2
-0.3
0.0
0.8
4.1
10.8
18.1
66.2
100.0
0.0
0.0
0.0
0.0
-0.3
-0.2
4.6
10.3
16.4
19.3
25.7
21.2
0.0
0.3
29.8
77.3
93.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.4
2.2
0.0
0.0
7.9
92.1
63.1
0
-2
-376
-17,276
-117,483
0.0
0.0
-0.4
-3.0
-4.0
0.1
0.1
0.1
-0.6
-0.4
13.9
10.2
15.9
26.2
13.2
0.0
0.0
-0.1
-1.0
-1.4
21.8
23.0
25.0
30.7
33.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile, 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
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
533
2,962
8,560
17,195
73,069
16,275
11,067
25,890
43,664
71,783
207,160
59,894
4.6
10.3
16.4
19.3
26.1
21.4
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.6
14.8
20.3
51.2
100.0
0.8
4.0
10.7
17.9
66.5
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
30,137
45,109
86,803
577,011
2,917,525
108,248
151,440
258,771
1,248,177
5,449,749
21.8
23.0
25.1
31.6
34.9
13.5
9.4
13.4
18.1
8.4
13.5
9.2
12.8
15.8
6.9
13.8
10.1
15.8
26.8
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: 4.3
Proposal: 4.3
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax 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
0.0
0.0
0.0
0.0
7.8
1.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-745
-142
0.0
0.0
0.0
0.0
-1.2
-0.9
0.0
0.0
0.1
0.2
-0.3
0.0
0.1
2.8
8.6
17.3
71.0
100.0
0.0
0.0
0.0
0.0
-0.3
-0.2
1.0
8.5
15.1
18.9
25.6
21.2
0.0
0.1
21.3
73.5
90.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.3
2.1
0.0
0.0
5.8
94.2
65.1
0
0
-216
-14,641
-101,989
0.0
0.0
-0.3
-3.0
-4.0
0.1
0.1
0.1
-0.6
-0.5
15.3
11.5
17.1
27.2
13.7
0.0
0.0
-0.1
-0.9
-1.4
21.9
23.2
24.8
30.4
33.2
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
112
2,216
6,970
14,640
60,978
16,275
10,823
23,991
39,352
62,925
174,570
59,894
1.0
8.5
15.1
18.9
25.9
21.4
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
20.0
55.5
100.0
0.1
2.8
8.5
17.1
71.3
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
25,783
38,696
73,138
495,715
2,543,474
91,875
128,475
221,074
1,089,011
4,816,718
21.9
23.2
24.9
31.3
34.6
14.7
10.5
14.6
19.0
8.7
14.6
10.3
13.9
16.6
7.3
15.1
11.4
17.0
27.8
14.1
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: 4.3
Proposal: 4.3
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax Brackets
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single 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
0.0
0.0
0.0
0.0
4.0
0.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-377
-52
0.0
0.0
0.0
0.0
-1.0
-0.6
0.0
0.0
0.1
0.1
-0.2
0.0
1.6
5.2
12.7
21.0
59.4
100.0
0.0
0.0
0.0
0.0
-0.3
-0.1
7.1
10.7
16.9
20.8
26.0
21.1
0.0
0.0
8.0
66.9
88.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.4
2.3
0.0
0.0
3.2
96.8
64.9
0
0
-65
-9,700
-74,170
0.0
0.0
-0.1
-2.8
-3.8
0.1
0.1
0.1
-0.4
-0.3
15.6
10.8
14.0
19.1
9.3
0.0
0.0
0.0
-0.9
-1.4
23.3
24.3
24.3
31.7
35.8
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
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
592
2,132
5,784
11,609
39,860
9,304
7,788
17,838
28,478
44,224
112,119
34,574
7.1
10.7
16.9
20.8
26.2
21.2
4.7
10.2
15.9
21.3
48.2
100.0
5.6
11.6
16.7
21.4
45.1
100.0
1.6
5.1
12.6
20.9
59.6
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
19,610
28,948
49,841
346,127
1,951,796
64,427
90,083
154,707
714,505
3,291,311
23.3
24.3
24.4
32.6
37.2
14.1
9.3
12.1
12.7
5.5
13.7
9.0
11.7
10.8
4.4
15.5
10.7
14.0
19.5
9.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax Brackets
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 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
0.0
0.0
0.0
9.9
3.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.3
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-932
-283
0.0
0.0
0.0
0.0
-1.3
-1.0
0.0
0.0
0.1
0.2
-0.2
0.0
0.0
1.4
5.4
14.9
78.1
100.0
0.0
0.0
0.0
0.0
-0.3
-0.2
0.8
7.8
13.5
17.8
25.4
22.1
0.0
0.1
27.4
75.8
91.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.3
2.1
0.0
0.0
6.4
93.6
64.3
0
0
-283
-15,992
-108,897
0.0
0.0
-0.3
-3.0
-4.1
0.2
0.1
0.1
-0.6
-0.5
15.3
12.4
19.2
31.2
15.4
0.0
0.0
-0.1
-0.9
-1.4
21.3
22.8
24.9
30.0
32.6
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
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
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
115
2,616
8,074
16,935
72,581
28,105
14,411
30,789
51,597
78,088
209,261
97,915
0.8
7.8
13.5
17.8
25.8
22.3
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.5
64.8
100.0
0.0
1.4
5.4
14.8
78.3
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
29,497
43,750
84,507
540,417
2,683,362
108,815
148,341
253,215
1,208,047
5,207,015
21.3
22.8
25.0
30.9
34.0
15.9
12.0
17.0
23.0
10.5
16.1
12.0
16.4
20.4
8.9
15.2
12.3
19.1
31.8
15.9
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).
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax Brackets
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 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
0.0
0.0
0.0
3.9
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.1
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-362
-18
0.0
0.0
0.0
0.0
-0.8
-0.3
0.0
0.0
0.1
0.1
-0.2
0.0
-5.3
9.7
27.5
29.5
38.5
100.0
0.0
0.0
0.0
0.0
-0.2
0.0
-7.2
6.0
15.3
19.7
24.7
13.9
0.0
0.0
14.0
72.0
88.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.3
2.1
0.0
0.0
5.2
94.8
61.9
0
0
-134
-12,897
-95,545
0.0
0.0
-0.2
-2.9
-4.0
0.1
0.0
0.0
-0.3
-0.2
14.6
5.9
8.0
10.2
4.8
0.0
0.0
-0.1
-0.9
-1.4
22.8
23.2
23.5
30.7
33.5
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 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
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
1,830
7,677
15,107
44,426
5,804
14,455
28,787
42,598
61,774
134,095
35,956
-7.2
6.0
15.3
19.7
24.9
13.9
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.5
24.6
19.4
18.9
100.0
-5.3
9.6
27.5
29.4
38.7
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
25,698
35,895
65,574
449,803
2,420,193
87,064
118,999
212,844
973,797
4,530,311
22.8
23.2
23.6
31.6
34.8
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.7
1.5
14.5
5.8
7.9
10.4
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 the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax 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
0.0
0.0
0.0
11.8
2.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-900
-152
0.0
0.0
0.0
0.0
-1.1
-0.8
0.0
0.0
0.1
0.2
-0.2
0.0
-1.3
2.2
10.0
19.9
69.1
100.0
0.0
0.0
0.0
0.0
-0.3
-0.2
-8.9
6.1
15.4
19.4
26.7
21.0
0.0
0.4
42.4
81.9
94.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.3
2.1
0.0
0.0
8.8
91.2
64.3
0
0
-418
-18,255
-133,625
0.0
0.0
-0.4
-2.6
-3.9
0.1
0.1
0.1
-0.5
-0.4
15.9
10.8
16.9
25.6
12.2
0.0
0.0
-0.1
-0.9
-1.4
22.6
23.9
26.5
32.2
33.9
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 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
2,102
9,601
19,985
82,689
20,173
16,026
32,570
52,697
83,157
223,374
75,246
-8.9
6.1
15.4
19.4
27.0
21.1
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.1
14.6
22.0
50.2
100.0
-1.3
2.2
9.9
19.8
69.3
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
35,641
53,560
106,352
690,609
3,467,467
121,855
170,986
294,004
1,397,845
6,372,228
22.6
23.9
26.6
33.1
35.2
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.5
14.1
6.2
15.8
10.7
16.8
26.1
12.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0206
Extend 15-Percent Rate on Dividends and Capital Gains to Taxpayers in Top 2 Tax 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
0.0
0.0
0.0
0.0
9.3
1.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.7
0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
-1,290
-237
0.0
0.0
0.0
0.0
-2.1
-1.8
0.0
0.0
0.1
0.2
-0.3
0.0
0.3
1.7
3.5
10.5
83.9
100.0
0.0
0.0
0.0
0.0
-0.5
-0.3
2.4
3.8
5.7
11.0
23.5
17.5
0.0
0.0
15.0
72.0
93.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.7
2.4
0.0
0.0
4.8
95.2
60.0
0
0
-250
-15,910
-102,615
0.0
0.0
-0.4
-3.7
-4.5
0.2
0.2
0.3
-0.9
-0.7
9.9
9.5
20.3
44.4
22.6
0.0
0.0
-0.1
-1.1
-1.6
15.6
18.3
22.0
29.6
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
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
262
846
2,355
7,727
61,759
13,490
10,637
21,682
38,739
62,511
195,289
62,248
2.4
3.8
5.7
11.0
24.0
17.8
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.4
12.2
18.1
57.7
100.0
0.3
1.7
3.4
10.3
84.2
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
16,426
28,074
59,039
429,949
2,260,057
89,018
125,029
208,842
967,012
4,260,034
15.6
18.3
22.0
30.8
34.7
11.1
9.0
16.1
26.2
12.0
11.4
9.0
15.3
22.1
9.5
9.7
9.3
20.0
45.3
23.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is the Administration's proposal to extend 2009 estate tax law and all 2001-03 individual income tax cuts other than the high-income provisions relating to dividends and capital gains, the limitation on
itemized deductions (Pease) and the personal exemption phaseout (PEP); and the top two statutory income tax rates. Proposal extends the 15-percent tax rate on qualified dividends and capital gains to taxpayers in the 36 and 39.6
percent tax brackets, where the 36 percent bracket threshold has been adjusted under the baseline and proposal to $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard
deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation after 2009.
(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.