12-Jan-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0007
Distribution of Federal Tax Benefits of the CTC, CDCTC and EITC
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
Without
Benefit
With Benefit
24.0
25.8
30.6
31.1
29.1
28.5
32.3
28.1
8.4
5.5
2.8
27.3
76.0
74.2
69.5
68.9
70.9
71.5
67.7
71.9
91.6
94.5
97.2
72.7
Benefit as
Percent of AfterTax Income 4
Average Benefit
Share of Total
Benefits
5.7
5.9
5.3
3.2
1.8
1.0
0.9
0.4
0.0
0.0
0.0
1.3
7.2
21.8
23.1
15.1
8.6
9.4
7.3
6.8
0.3
0.0
0.0
100.0
Dollars
333
872
1,255
994
710
539
606
417
61
41
21
690
Percent of
Tax
376.2
579.6
87.7
28.6
12.7
5.8
4.2
1.5
0.1
0.0
0.0
5.8
Share of Federal Taxes
With Credit
0.1
0.2
1.5
3.1
4.0
9.5
10.3
26.1
18.5
7.8
18.9
100.0
Without
Credit
0.5
1.4
2.7
3.7
4.2
9.5
10.1
25.0
17.5
7.4
17.8
100.0
Average Federal Tax Rate5
With Credit
1.5
1.0
5.7
10.0
12.5
15.0
17.0
19.7
22.7
24.3
29.1
18.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 1
Cash Income Level
(thousands of 2011
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
24,457
28,266
20,763
17,188
13,691
19,752
13,684
18,322
5,366
907
433
163,869
Pre-Tax Income
Percent of
Total
Average (dollars)
14.9
17.3
12.7
10.5
8.4
12.1
8.4
11.2
3.3
0.6
0.3
100.0
5,898
14,998
24,923
34,760
44,748
62,065
85,915
140,324
294,445
686,468
2,906,843
65,357
Federal Tax Burden
Percent of
Total
1.4
4.0
4.8
5.6
5.7
11.5
11.0
24.0
14.8
5.8
11.8
100.0
After-Tax Income 4
Average
(dollars)
Percent of
Total
Average
(dollars)
Percent of
Total
89
150
1,431
3,476
5,592
9,331
14,594
27,584
66,815
166,985
844,927
11,841
0.1
0.2
1.5
3.1
4.0
9.5
10.3
26.1
18.5
7.8
18.9
100.0
5,810
14,848
23,492
31,284
39,156
52,734
71,320
112,740
227,630
519,484
2,061,916
53,516
1.6
4.8
5.6
6.1
6.1
11.9
11.1
23.6
13.9
5.4
10.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0411-2).
Number of AMT Taxpayers (millions). Baseline: 4.3
Proposal: 4.3
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal is current law without the Child Tax Credit, Child and Dependent Care Tax Credit, and Earned Income Tax Credit.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Average
Federal Tax
Rate 5
1.5
1.0
5.7
10.0
12.5
15.0
17.0
19.7
22.7
24.3
29.1
18.1
Without
Credit
7.2
6.8
10.8
12.9
14.1
15.9
17.7
20.0
22.7
24.3
29.1
19.2