9-Dec-15
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 T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2016 ¹
Summary Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Tax Units with Tax Increase or Cut 4
With Tax Cut
Pct of Tax Units
Avg Tax Cut
With Tax Increase
Avg Tax
Pct of Tax Units
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
1.1
11.4
23.2
32.0
37.0
17.8
-932
-1,799
-3,185
-4,178
-4,459
-3,611
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0.1
0.7
1.4
1.5
0.7
0.9
0.5
6.9
22.6
34.3
35.3
100.0
-10
-204
-738
-1,337
-1,648
-642
-0.1
-0.6
-1.2
-1.2
-0.5
-0.7
4.2
7.7
12.5
16.2
25.8
19.7
38.1
32.1
39.6
40.0
38.4
-4,395
-4,532
-4,440
-4,883
-5,089
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
1.2
0.8
0.6
0.1
0.0
18.5
7.8
7.1
2.0
0.2
-1,672
-1,456
-1,760
-1,951
-1,956
-1.0
-0.6
-0.4
-0.1
0.0
19.4
21.6
25.4
34.0
35.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
** Insufficient data
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but
are included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars):
20% $22,823; 40% $44,550; 60% $79,661; 80% $141,303; 90% $207,758; 95% $294,348; 99% $720,886; 99.9% $3,672,221.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2016 ¹
Detail Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
1.1
11.4
23.2
32.0
37.0
17.8
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.7
1.4
1.5
0.7
0.9
0.5
6.9
22.6
34.3
35.3
100.0
-10
-204
-738
-1,337
-1,648
-642
-1.8
-7.3
-8.7
-7.1
-1.9
-3.6
0.0
-0.1
-0.5
-0.6
1.3
0.0
0.9
3.3
8.9
16.8
69.9
100.0
-0.1
-0.6
-1.2
-1.2
-0.5
-0.7
4.2
7.7
12.5
16.2
25.8
19.7
38.1
32.1
39.6
40.0
38.4
0.0
0.0
0.0
0.0
0.0
1.2
0.8
0.6
0.1
0.0
18.5
7.8
7.1
2.0
0.2
-1,672
-1,456
-1,760
-1,951
-1,956
-4.8
-2.6
-1.6
-0.3
-0.1
-0.2
0.1
0.3
1.0
0.5
13.9
10.8
16.1
29.1
14.0
-1.0
-0.6
-0.4
-0.1
0.0
19.4
21.6
25.4
34.0
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
47,691
37,422
33,984
28,418
23,750
172,532
27.6
21.7
19.7
16.5
13.8
100.0
13,336
33,359
61,542
107,903
336,456
86,987
4.2
8.3
13.9
20.4
53.2
100.0
568
2,782
8,456
18,784
88,524
17,747
0.9
3.4
9.4
17.4
68.7
100.0
12,768
30,577
53,086
89,120
247,931
69,241
5.1
9.6
15.1
21.2
49.3
100.0
4.3
8.3
13.7
17.4
26.3
20.4
12,233
5,942
4,447
1,129
115
7.1
3.4
2.6
0.7
0.1
173,085
248,145
420,979
2,239,143
10,045,915
14.1
9.8
12.5
16.8
7.7
35,184
55,136
108,599
763,369
3,579,846
14.1
10.7
15.8
28.1
13.5
137,901
193,009
312,380
1,475,774
6,466,069
14.1
9.6
11.6
13.9
6.3
20.3
22.2
25.8
34.1
35.6
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20%
$22,823; 40% $44,550; 60% $79,661; 80% $141,303; 90% $207,758; 95% $294,348; 99% $720,886; 99.9% $3,672,221.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
2.9
15.7
25.3
26.1
22.0
17.8
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.4
2.1
1.4
0.4
0.9
1.1
12.5
30.6
30.9
24.6
100.0
-32
-381
-981
-1,063
-905
-642
-55.6
-19.1
-14.6
-6.7
-1.2
-3.6
0.0
-0.4
-0.9
-0.5
1.8
0.0
0.0
2.0
6.7
16.2
74.9
100.0
-0.3
-1.3
-1.8
-1.1
-0.3
-0.7
0.2
5.5
10.6
15.8
25.7
19.7
22.7
18.4
23.5
28.0
26.8
0.0
0.0
0.0
0.0
0.0
0.8
0.4
0.4
0.1
0.0
12.9
5.0
5.1
1.6
0.2
-920
-738
-987
-1,321
-1,318
-3.1
-1.6
-1.1
-0.2
0.0
0.1
0.3
0.5
1.0
0.5
15.2
11.9
17.7
30.1
14.6
-0.6
-0.3
-0.3
-0.1
0.0
19.5
21.8
25.1
33.8
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
38,232
36,211
34,505
32,174
30,143
172,532
22.2
21.0
20.0
18.7
17.5
100.0
12,438
29,245
53,941
94,039
285,692
86,987
3.2
7.1
12.4
20.2
57.4
100.0
57
2,000
6,723
15,900
74,202
17,747
0.1
2.4
7.6
16.7
73.1
100.0
12,381
27,245
47,219
78,139
211,490
69,241
4.0
8.3
13.6
21.0
53.4
100.0
0.5
6.8
12.5
16.9
26.0
20.4
15,518
7,548
5,756
1,321
136
9.0
4.4
3.3
0.8
0.1
147,812
214,051
361,215
1,985,313
8,905,644
15.3
10.8
13.9
17.5
8.1
29,772
47,345
91,720
673,125
3,173,218
15.1
11.7
17.2
29.1
14.1
118,039
166,706
269,496
1,312,188
5,732,427
15.3
10.5
13.0
14.5
6.5
20.1
22.1
25.4
33.9
35.6
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732;
95% $174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
0.5
1.5
1.8
1.7
0.9
1.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.1
0.0
0.1
4.0
24.8
35.9
24.4
10.5
100.0
-4
-30
-53
-49
-31
-30
-0.7
-1.5
-0.9
-0.4
-0.1
-0.4
0.0
-0.1
-0.1
0.0
0.2
0.0
2.1
5.9
13.7
22.2
55.8
100.0
0.0
-0.1
-0.1
-0.1
0.0
-0.1
6.1
8.5
13.6
18.2
26.0
18.5
0.7
1.3
0.7
1.5
1.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.2
3.3
1.5
0.5
0.1
-26
-42
-28
-59
-52
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
16.1
9.4
12.1
18.2
9.7
0.0
0.0
0.0
0.0
0.0
21.3
22.6
25.8
36.3
37.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
25,683
21,585
17,636
12,851
8,784
87,180
29.5
24.8
20.2
14.7
10.1
100.0
9,700
23,067
41,046
68,044
175,035
44,584
6.4
12.8
18.6
22.5
39.6
100.0
598
1,993
5,642
12,461
45,615
8,266
2.1
6.0
13.8
22.2
55.6
100.0
9,102
21,074
35,404
55,583
129,420
36,317
7.4
14.4
19.7
22.6
35.9
100.0
6.2
8.6
13.8
18.3
26.1
18.5
5,172
2,001
1,374
237
29
5.9
2.3
1.6
0.3
0.0
105,179
148,758
244,058
1,524,021
6,406,099
14.0
7.7
8.6
9.3
4.8
22,416
33,634
62,976
553,461
2,391,340
16.1
9.3
12.0
18.2
9.7
82,763
115,124
181,081
970,560
4,014,758
13.5
7.3
7.9
7.3
3.7
21.3
22.6
25.8
36.3
37.3
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732;
95% $174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Married Tax Units Filing Jointly
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
9.7
33.4
43.3
40.6
30.7
34.2
0.0
0.0
0.0
0.0
0.0
0.0
0.7
2.6
3.1
1.8
0.5
1.1
0.8
8.2
26.1
33.8
30.8
100.0
-128
-1,006
-1,966
-1,768
-1,289
-1,410
54.5
-39.0
-24.0
-9.5
-1.5
-3.9
0.0
-0.3
-0.9
-0.8
2.0
0.0
-0.1
0.5
3.3
13.0
83.1
100.0
-0.7
-2.4
-2.8
-1.5
-0.4
-0.9
-1.9
3.8
8.7
14.6
25.5
21.3
33.8
24.2
30.8
33.8
34.3
0.0
0.0
0.0
0.0
0.0
1.0
0.5
0.4
0.1
0.0
15.9
6.2
6.6
2.0
0.2
-1,405
-996
-1,308
-1,623
-1,721
-4.1
-1.9
-1.3
-0.2
-0.1
0.0
0.3
0.5
1.3
0.6
14.9
13.1
20.5
34.6
16.1
-0.8
-0.4
-0.3
-0.1
0.0
18.8
21.6
25.0
33.4
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
4,872
6,661
10,912
15,713
19,617
58,288
8.4
11.4
18.7
27.0
33.7
100.0
18,801
41,196
71,227
115,487
338,411
164,217
1.0
2.9
8.1
19.0
69.4
100.0
-235
2,578
8,194
18,618
87,643
36,401
-0.1
0.8
4.2
13.8
81.0
100.0
19,035
38,618
63,033
96,869
250,768
127,815
1.2
3.5
9.2
20.4
66.0
100.0
-1.3
6.3
11.5
16.1
25.9
22.2
9,309
5,126
4,159
1,023
97
16.0
8.8
7.1
1.8
0.2
172,936
241,837
403,001
2,065,598
9,569,483
16.8
13.0
17.5
22.1
9.7
33,980
53,138
101,902
690,920
3,373,039
14.9
12.8
20.0
33.3
15.5
138,956
188,700
301,099
1,374,678
6,196,444
17.4
13.0
16.8
18.9
8.1
19.7
22.0
25.3
33.5
35.3
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732;
95% $174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Head of Household Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
5.7
40.7
67.7
58.4
42.3
38.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3
2.4
3.8
2.3
0.8
2.2
1.6
25.0
44.5
22.3
6.5
100.0
-54
-828
-2,101
-1,862
-1,370
-1,022
3.2
-60.7
-29.5
-11.1
-2.4
-16.2
-1.9
-3.5
-3.9
2.0
7.4
0.0
-10.1
3.1
20.5
34.4
52.0
100.0
-0.3
-2.3
-3.4
-1.9
-0.6
-1.9
-9.9
1.5
8.0
15.3
24.6
9.9
42.9
40.8
40.8
49.7
59.0
0.0
0.0
0.0
0.0
0.0
1.2
0.8
0.5
0.1
0.0
4.1
1.4
0.7
0.2
0.0
-1,384
-1,302
-1,350
-1,736
-2,101
-4.6
-2.9
-1.6
-0.2
-0.1
2.0
1.3
1.3
2.8
1.6
16.7
9.4
8.6
17.3
10.0
-1.0
-0.7
-0.4
-0.1
0.0
20.0
21.9
25.3
34.0
35.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
7,312
7,436
5,226
2,957
1,165
24,145
30.3
30.8
21.6
12.3
4.8
100.0
17,857
36,660
62,412
97,505
231,777
53,332
10.1
21.2
25.3
22.4
21.0
100.0
-1,713
1,365
7,117
16,727
58,373
6,313
-8.2
6.7
24.4
32.5
44.6
100.0
19,570
35,295
55,295
80,778
173,403
47,020
12.6
23.1
25.5
21.0
17.8
100.0
-9.6
3.7
11.4
17.2
25.2
11.8
734
273
129
29
3
3.0
1.1
0.5
0.1
0.0
145,231
201,115
337,575
2,238,359
11,305,434
8.3
4.3
3.4
5.0
2.8
30,410
45,289
86,585
763,247
4,060,765
14.7
8.1
7.4
14.5
8.4
114,821
155,826
250,990
1,475,112
7,244,669
7.4
3.7
2.9
3.8
2.0
20.9
22.5
25.7
34.1
35.9
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732;
95% $174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Tax Units with Children
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
10.1
51.7
83.3
83.1
70.5
59.2
0.0
0.0
0.0
0.0
0.0
0.0
0.6
3.3
5.0
3.3
1.0
2.2
1.1
12.2
30.2
31.1
25.1
100.0
-115
-1,268
-3,247
-3,403
-2,902
-2,156
6.9
-73.1
-35.3
-15.6
-2.8
-8.5
-0.2
-1.0
-2.1
-1.3
4.7
0.0
-1.6
0.4
5.1
15.6
80.3
100.0
-0.6
-3.1
-4.4
-2.7
-0.8
-1.7
-9.5
1.2
8.0
14.6
26.0
18.9
73.9
60.8
71.7
76.7
78.1
0.0
0.0
0.0
0.0
0.0
1.9
1.1
0.9
0.2
0.1
13.1
5.1
5.2
1.6
0.2
-3,007
-2,441
-3,012
-3,621
-3,850
-7.5
-3.8
-2.4
-0.4
-0.1
0.2
0.6
1.2
2.7
1.3
14.9
11.8
19.5
34.1
15.6
-1.5
-0.9
-0.6
-0.2
0.0
18.9
21.8
25.7
33.9
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
10,234
10,415
10,074
9,897
9,368
50,272
20.4
20.7
20.0
19.7
18.6
100.0
18,852
40,647
74,066
126,678
388,066
123,886
3.1
6.8
12.0
20.1
58.4
100.0
-1,667
1,733
9,191
21,860
103,660
25,527
-1.3
1.4
7.2
16.9
75.7
100.0
20,519
38,914
64,875
104,819
284,405
98,359
4.3
8.2
13.2
21.0
53.9
100.0
-8.8
4.3
12.4
17.3
26.7
20.6
4,730
2,275
1,882
482
47
9.4
4.5
3.7
1.0
0.1
195,763
280,240
473,252
2,453,236
11,186,185
14.9
10.2
14.3
19.0
8.4
40,041
63,616
124,816
834,989
3,940,058
14.8
11.3
18.3
31.3
14.3
155,722
216,624
348,436
1,618,247
7,246,127
14.9
10.0
13.3
15.8
6.8
20.5
22.7
26.4
34.0
35.2
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732;
95% $174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.
9-Dec-15
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T15-0211
$2500 Extra Refundable CTC (no phaseout) Limited to Net Income and Payroll Taxes
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Detail Table - Elderly Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units4
With Tax Cut
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
0.2
0.8
2.5
3.0
2.0
1.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.1
0.0
0.1
0.8
6.8
32.1
36.0
21.8
100.0
-2
-12
-66
-94
-67
-47
-1.1
-1.9
-2.3
-0.9
-0.1
-0.3
0.0
0.0
-0.1
-0.1
0.2
0.0
0.2
1.2
4.8
13.1
80.2
100.0
0.0
-0.1
-0.1
-0.1
0.0
-0.1
1.7
2.5
5.9
11.7
25.8
17.7
1.6
2.6
2.2
2.9
2.2
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
8.9
7.2
4.0
1.7
0.2
-52
-91
-70
-101
-71
-0.2
-0.2
-0.1
0.0
0.0
0.0
0.0
0.0
0.1
0.1
13.2
10.7
15.3
41.0
22.7
0.0
-0.1
0.0
0.0
0.0
17.1
20.2
24.4
34.8
36.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2016 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Pre-Tax Income
Federal Tax Burden
Percent of
Total
6,761
10,923
9,410
7,396
6,233
41,164
16.4
26.5
22.9
18.0
15.1
100.0
11,850
24,835
47,748
83,981
277,400
76,347
2.6
8.6
14.3
19.8
55.0
100.0
197
642
2,885
9,948
71,666
13,565
0.2
1.3
4.9
13.2
80.0
100.0
11,652
24,194
44,863
74,033
205,734
62,782
3.1
10.2
16.3
21.2
49.6
100.0
1.7
2.6
6.0
11.9
25.8
17.8
3,290
1,531
1,087
325
43
8.0
3.7
2.6
0.8
0.1
130,820
191,752
321,464
2,015,265
8,080,211
13.7
9.3
11.1
20.9
11.0
22,416
38,812
78,334
701,931
2,947,959
13.2
10.6
15.2
40.9
22.6
108,404
152,939
243,130
1,313,334
5,132,252
13.8
9.1
10.2
16.5
8.5
17.1
20.2
24.4
34.8
36.5
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Number
(thousands)
Average (dollars)
Percent of
Total
After-Tax Income 5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0515-1).
* Less than 0.05
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Baseline is current law. Proposal would provide up to $2500 extra refundable CTC. The credit is not subject to phaseout and is limited to net income and payroll taxes.
We assume people who do not file tax returns will continue to not file tax returns. For a description of TPC's current law baseline, see:
http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are
included in the totals. For a description of expanded cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The 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 2015 dollars): 20% $15,856; 40% $29,550; 60% $51,312; 80% $85,800; 90% $124,732;
95% $174,098; 99% $413,202; 99.9% $2,095,408.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, the estate tax, and excise taxes) as a percentage of average expanded cash income.