28-Mar-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0111
Distribution of the Tax Benefits of the Child Tax Credit (CTC)
1
by Cash Income Class, 2007
Cash Income Class
(thousands of 2006
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
With Benefit
Without
Benefit
0.2
12.5
24.6
28.0
26.4
30.2
34.4
27.9
1.6
1.0
0.4
21.0
99.8
87.6
75.5
72.0
73.6
69.9
65.6
72.1
98.4
99.0
99.6
79.0
Benefit as
Percent of AfterTax Income4
0.0
0.5
1.3
1.4
1.1
1.0
0.8
0.4
0.0
0.0
0.0
0.6
Share of Total
Benefits
0.1
3.8
13.1
14.3
11.7
24.2
17.2
15.4
0.2
0.0
0.0
100.0
Average Benefit
Dollars
Share of Federal Taxes
Percent of
Tax
2
66
292
421
431
510
588
413
19
13
5
301
0.8
10.0
12.0
8.5
5.7
4.4
3.3
1.3
0.0
0.0
0.0
2.1
With Credit
0.2
0.8
2.3
3.5
4.3
11.6
11.0
24.9
16.3
6.7
18.4
100.0
Without
Credit
0.2
0.9
2.5
3.7
4.4
11.8
11.1
24.7
15.9
6.5
18.0
100.0
Average Federal Tax Rate 5
With Credit
4.1
4.3
9.6
13.9
16.5
18.6
20.3
23.4
26.6
27.4
32.0
21.6
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Class, 2007
Cash Income Class
(thousands of 2006
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)
Percent of
Total
18,608
25,761
20,224
15,244
12,157
21,294
13,139
16,685
4,475
756
396
149,332
12.5
17.3
13.5
10.2
8.1
14.3
8.8
11.2
3.0
0.5
0.3
100.0
Average
Income
(Dollars)
5,699
15,189
25,240
35,555
45,638
62,764
88,142
137,212
293,234
692,259
3,113,319
66,439
Average
Federal Tax
Burden
(Dollars)
231
656
2,424
4,944
7,515
11,676
17,919
32,072
78,006
189,661
994,659
14,376
Average AfterTax Income4
(Dollars)
5,468
14,533
22,817
30,611
38,123
51,088
70,223
105,140
215,228
502,598
2,118,660
52,064
Average
Federal Tax
Rate5
4.1
4.3
9.6
13.9
16.5
18.6
20.3
23.4
26.6
27.4
32.0
21.6
Share of PreTax Income
Percent of
Total
1.1
3.9
5.1
5.5
5.6
13.5
11.7
23.1
13.2
5.3
12.4
100.0
Share of PostTax Income
Percent of
Total
1.3
4.8
5.9
6.0
6.0
14.0
11.9
22.6
12.4
4.9
10.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-2).
Number of AMT Taxpayers (millions). With credit:
23.5
Without credit:
23.6
(1) Calendar year. Baseline is current law.
(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.
Share of
Federal Taxes
Percent of
Total
0.2
0.8
2.3
3.5
4.3
11.6
11.0
24.9
16.3
6.7
18.4
100.0
Without
Credit
4.1
4.8
10.8
15.1
17.4
19.4
21.0
23.7
26.6
27.4
32.0
22.1