18-May-05
Preliminary Results
http://www.taxpolicycenter.org
Table T05-0252. CTC Option 1: Make EGTRRA Provisions Permanent
1
Distribution of Federal Tax Change by Cash Income Class, 2015
Cash Income Class
(thousands of 2005
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 Units3
With Tax
Cut
With Tax
Increase
0.2
15.2
24.0
26.7
24.7
27.2
28.6
15.0
0.7
0.4
0.4
19.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income4
0.0
0.5
0.8
0.7
0.6
0.6
0.5
0.1
0.0
0.0
0.0
0.3
Share of
Total Federal
Tax Change
0.1
6.2
14.4
13.0
10.8
24.8
19.3
11.1
0.1
0.0
0.0
100.0
Average Federal Tax Change
Dollars
-2
-83
-208
-241
-256
-343
-416
-171
-7
-5
-4
-201
Percent
-0.7
-7.4
-5.6
-3.5
-2.5
-2.1
-1.7
-0.4
0.0
0.0
0.0
-0.9
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
0.2
0.2
0.1
0.2
0.0
Under the
Proposal
Average Federal Tax Rate5
Change (%
Points)
0.1
0.7
2.3
3.3
4.0
10.8
10.7
26.8
17.9
6.7
16.5
100.0
0.0
-0.4
-0.7
-0.6
-0.5
-0.5
-0.4
-0.1
0.0
0.0
0.0
-0.2
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Class, 2015
Cash Income Class
(thousands of 2005
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 Units3
Number
(thousands)
15,853
24,587
22,795
17,610
13,922
23,689
15,212
21,328
6,135
948
486
163,160
Percent of
Total
9.7
15.1
14.0
10.8
8.5
14.5
9.3
13.1
3.8
0.6
0.3
100.0
Average
Income
(Dollars)
6,645
18,558
30,772
43,040
55,387
76,043
107,254
168,033
353,439
839,707
3,555,482
88,578
Average
Federal Tax
Burden
(Dollars)
317
1,112
3,713
6,817
10,328
16,236
25,000
44,051
101,710
245,425
1,181,080
21,580
Average
After-Tax
Income4
(Dollars)
6,328
17,446
27,059
36,223
45,059
59,807
82,255
123,981
251,728
594,281
2,374,402
66,998
Average
Federal Tax
Rate5
4.8
6.0
12.1
15.8
18.7
21.4
23.3
26.2
28.8
29.2
33.2
24.4
Share of PreTax Income
Percent of
Total
0.7
3.2
4.9
5.2
5.3
12.5
11.3
24.8
15.0
5.5
12.0
100.0
Share of PostTax Income
Percent of
Total
0.9
3.9
5.6
5.8
5.7
13.0
11.5
24.2
14.1
5.2
10.6
100.0
Share of
Federal Taxes
Percent of
Total
0.1
0.8
2.4
3.4
4.1
10.9
10.8
26.7
17.7
6.6
16.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-2).
(1) Calendar year. Baseline is current law. Provisions include: allow CTC regardless of tentative AMT; increase maximum amount per child to $1,000 from $500; allow credit to be
refundable at a rate of 15% of earned income in excess of $10,000, indexed for inflation after 2001.
(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. Tax units that are dependents of other taxpayers are excluded from the analysis.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
4.7
5.6
11.4
15.3
18.2
20.9
22.9
26.1
28.8
29.2
33.2
24.1