13-Oct-08
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 T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009
Summary Table
Cash Income Level
(thousands of 2008
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 Tax
Benefit
0.0
1.9
5.0
6.9
9.8
18.4
26.3
40.0
67.6
84.6
91.9
16.1
Without Tax
Benefit
100.0
98.1
95.0
93.1
90.2
81.7
73.7
60.0
32.4
15.4
8.1
83.9
Benefit as
Percent of
After-Tax
Income 4
0.0
0.0
0.0
0.1
0.1
0.2
0.2
0.4
1.3
2.8
8.7
1.6
Share of Total
Federal Tax
Benefits
0.0
0.0
0.1
0.2
0.3
1.2
1.8
6.8
11.6
10.1
67.9
100.0
Average
Federal Tax
Benefit ($)
0
2
9
18
30
78
173
471
2,827
14,030
179,268
913
1
Average Federal Tax Rate
5
Change due to Pref.
With Pref. Rates
Rates
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.3
-1.0
-2.0
-5.6
-1.2
5.3
4.7
9.3
13.3
15.9
17.9
19.7
22.8
26.0
26.8
30.3
21.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
(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.
13-Oct-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009
Detail Table
Cash Income Level
(thousands of 2008
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
With Tax Benefit
3
Without Tax
Benefit
0.0
1.9
5.0
6.9
9.8
18.4
26.3
40.0
67.6
84.6
91.9
16.1
100.0
98.1
95.0
93.1
90.2
81.7
73.7
60.0
32.4
15.4
8.1
83.9
Benefit as
Percent of
After-Tax
Income 4
0.0
0.0
0.0
0.1
0.1
0.2
0.2
0.4
1.3
2.8
8.7
1.6
Share of Total
Federal Tax
Benefits
0.0
0.0
0.1
0.2
0.3
1.2
1.8
6.8
11.6
10.1
67.9
100.0
Average Federal Tax Benefits
Dollars
0
2
9
18
30
78
173
471
2,827
14,030
179,268
913
As Percent of
Tax
0.0
0.2
0.4
0.4
0.4
0.7
1.0
1.5
3.6
7.0
15.6
5.3
1
Share of Federal Taxes
Change due to Pref.
Rates
With Pref.
Rates
0.0
0.0
0.1
0.1
0.2
0.5
0.4
1.0
0.3
-0.1
-2.5
0.0
0.2
0.7
1.9
2.8
3.5
10.0
10.1
25.3
17.4
7.5
20.6
100.0
Share of Pre-Tax
Income
Share of PostTax Income
Percent of
Total
Average Federal Tax Rate 5
Change due to
Pref. Rates
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.3
-1.0
-2.0
-5.6
-1.2
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
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)
17,204
24,101
19,493
14,384
11,749
21,662
14,107
19,712
5,636
989
519
150,241
Percent of Total
11.5
16.0
13.0
9.6
7.8
14.4
9.4
13.1
3.8
0.7
0.4
100.0
Average
Income
(Dollars)
5,704
15,181
25,314
35,555
45,838
63,039
88,790
138,154
291,886
695,069
3,199,967
75,289
Average
Federal Tax
Burden
(Dollars)
303
709
2,370
4,744
7,320
11,382
17,667
31,937
78,751
200,381
1,150,013
17,239
Average AfterTax Income 4
(Dollars)
5,401
14,472
22,944
30,810
38,518
51,656
71,123
106,217
213,135
494,688
2,049,953
58,049
Average
Federal Tax
Rate 5
5.3
4.7
9.4
13.3
16.0
18.1
19.9
23.1
27.0
28.8
35.9
22.9
Percent of Total
0.9
3.2
4.4
4.5
4.8
12.1
11.1
24.1
14.5
6.1
14.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
(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.
1.1
4.0
5.1
5.1
5.2
12.8
11.5
24.0
13.8
5.6
12.2
100.0
Share of Federal
Taxes
Percent of Total
0.2
0.7
1.8
2.6
3.3
9.5
9.6
24.3
17.1
7.7
23.1
100.0
With Pref.
Rates
5.3
4.7
9.3
13.3
15.9
17.9
19.7
22.8
26.0
26.8
30.3
21.7
13-Oct-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2008
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
With Tax Benefit
3
Without Tax
Benefit
0.0
3.0
7.5
9.9
14.1
21.8
33.1
48.6
75.2
83.9
91.5
11.7
100.0
97.0
92.6
90.1
86.0
78.2
66.9
51.4
24.8
16.1
8.5
88.3
Benefit as
Percent of
After-Tax
Income 4
0.0
0.0
0.1
0.1
0.1
0.3
0.4
0.9
2.5
4.8
10.8
1.2
Share of Total
Federal Tax
Benefits
0.0
0.2
0.6
0.8
1.1
3.8
3.2
9.9
15.2
11.3
54.0
100.0
Average Federal Tax Benefits
Dollars
0
3
16
30
50
121
250
866
5,379
22,561
203,450
398
As Percent of
Tax
0.0
0.2
0.4
0.5
0.6
0.9
1.2
2.6
6.4
10.3
15.9
4.2
1
Share of Federal Taxes
Change due to Pref.
Rates
With Pref.
Rates
0.0
0.1
0.2
0.3
0.3
0.6
0.4
0.3
-0.2
-0.3
-1.8
0.0
1.0
3.2
6.1
7.2
8.3
18.9
11.6
16.7
9.8
4.4
12.7
100.0
Share of Pre-Tax
Income
Share of PostTax Income
Percent of
Total
Average Federal Tax Rate 5
Change due to
Pref. Rates
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.3
-0.6
-1.8
-3.3
-6.4
-1.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
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)
12,556
14,909
9,879
6,530
5,421
8,162
3,264
2,958
730
130
69
64,958
Percent of Total
19.3
23.0
15.2
10.1
8.4
12.6
5.0
4.6
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,704
15,017
25,243
35,566
45,797
62,150
87,974
134,418
295,280
694,203
3,156,727
42,053
Average
Federal Tax
Burden
(Dollars)
452
1,254
3,645
6,486
9,004
13,625
21,076
33,863
83,647
220,103
1,278,338
9,391
Average AfterTax Income 4
(Dollars)
5,252
13,763
21,598
29,080
36,793
48,525
66,898
100,555
211,633
474,100
1,878,389
32,662
Average
Federal Tax
Rate 5
7.9
8.4
14.4
18.2
19.7
21.9
24.0
25.2
28.3
31.7
40.5
22.3
Percent of Total
2.6
8.2
9.1
8.5
9.1
18.6
10.5
14.6
7.9
3.3
7.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
(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.
3.1
9.7
10.1
9.0
9.4
18.7
10.3
14.0
7.3
2.9
6.1
100.0
Share of Federal
Taxes
Percent of Total
0.9
3.1
5.9
6.9
8.0
18.2
11.3
16.4
10.0
4.7
14.4
100.0
With Pref.
Rates
7.9
8.3
14.4
18.2
19.6
21.7
23.7
24.6
26.5
28.5
34.1
21.4
13-Oct-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2008
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
With Tax Benefit
3
Without Tax
Benefit
0.0
0.0
3.9
6.5
7.1
18.8
25.7
39.1
66.5
85.1
92.1
25.8
100.0
100.0
96.1
93.5
93.0
81.2
74.3
60.9
33.5
15.0
7.9
74.2
Benefit as
Percent of
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.4
1.1
2.5
8.4
1.8
Share of Total
Federal Tax
Benefits
0.0
0.0
0.0
0.1
0.1
0.5
1.4
6.2
10.7
10.1
71.0
100.0
Average Federal Tax Benefits
Dollars
0
0
4
13
14
58
152
405
2,351
12,659
171,282
1,743
As Percent of
Tax
0.0
0.0
0.3
0.5
0.3
0.6
0.9
1.3
3.0
6.4
15.5
5.8
1
Share of Federal Taxes
Change due to Pref.
Rates
With Pref.
Rates
0.0
0.0
0.0
0.0
0.1
0.3
0.4
1.3
0.6
-0.1
-2.7
0.0
0.0
0.1
0.4
0.7
1.1
5.4
8.9
29.2
21.2
9.1
23.9
100.0
Share of Pre-Tax
Income
Share of PostTax Income
Percent of
Total
Average Federal Tax Rate 5
Change due to
Pref. Rates
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.8
-1.8
-5.4
-1.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
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)
2,093
3,937
4,757
3,946
3,659
9,688
9,341
15,817
4,725
827
430
59,479
Percent of Total
3.5
6.6
8.0
6.6
6.2
16.3
15.7
26.6
7.9
1.4
0.7
100.0
Average
Income
(Dollars)
4,904
15,709
25,357
35,641
45,966
64,204
89,292
139,272
291,151
695,396
3,148,057
125,155
Average
Federal Tax
Burden
(Dollars)
262
462
1,252
2,872
5,191
9,478
16,242
31,539
77,910
197,171
1,107,694
30,095
Average AfterTax Income 4
(Dollars)
4,642
15,247
24,105
32,769
40,776
54,726
73,050
107,733
213,242
498,224
2,040,363
95,059
Average
Federal Tax
Rate 5
5.3
2.9
4.9
8.1
11.3
14.8
18.2
22.7
26.8
28.4
35.2
24.1
Percent of Total
0.1
0.8
1.6
1.9
2.3
8.4
11.2
29.6
18.5
7.7
18.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
(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.
0.2
1.1
2.0
2.3
2.6
9.4
12.1
30.1
17.8
7.3
15.5
100.0
Share of Federal
Taxes
Percent of Total
0.0
0.1
0.3
0.6
1.1
5.1
8.5
27.9
20.6
9.1
26.6
100.0
With Pref.
Rates
5.3
2.9
4.9
8.0
11.3
14.7
18.0
22.4
26.0
26.5
29.8
22.7
13-Oct-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2008
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
With Tax Benefit
3
Without Tax
Benefit
0.0
0.0
0.8
2.0
4.7
8.2
13.4
26.5
61.3
75.4
87.8
4.2
100.0
100.0
99.3
98.0
95.3
91.9
86.6
73.5
38.7
24.6
12.2
95.8
Benefit as
Percent of
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.3
2.0
2.7
9.3
0.4
Share of Total
Federal Tax
Benefits
0.0
0.0
0.1
0.3
0.6
2.9
5.0
6.4
17.0
8.0
59.9
100.0
Average Federal Tax Benefits
Dollars
0
0
1
2
8
29
134
271
4,295
12,999
181,519
144
As Percent of
Tax
0.0
0.0
0.1
0.1
0.1
0.3
0.7
0.9
5.5
6.7
16.3
2.5
1
Share of Federal Taxes
Change due to Pref.
Rates
With Pref.
Rates
0.0
-0.1
0.1
0.2
0.3
0.6
0.3
0.3
-0.2
-0.1
-1.3
0.0
-0.8
-3.1
2.0
9.1
11.3
27.2
17.5
18.6
7.4
2.8
7.8
100.0
Share of Pre-Tax
Income
Share of PostTax Income
Percent of
Total
Average Federal Tax Rate 5
Change due to
Pref. Rates
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.2
-1.4
-1.9
-5.9
-0.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
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)
2,406
4,961
4,512
3,554
2,315
3,290
1,254
786
132
21
11
23,292
Percent of Total
10.3
21.3
19.4
15.3
9.9
14.1
5.4
3.4
0.6
0.1
0.1
100.0
Average
Income
(Dollars)
6,412
15,257
25,403
35,401
45,811
61,934
87,576
130,519
298,070
683,864
3,070,023
40,351
Average
Federal Tax
Burden
(Dollars)
-455
-822
601
3,419
6,469
11,015
18,683
31,731
78,738
195,443
1,114,367
5,845
Average AfterTax Income 4
(Dollars)
6,867
16,079
24,803
31,982
39,343
50,919
68,893
98,788
219,332
488,422
1,955,655
34,506
Average
Federal Tax
Rate 5
-7.1
-5.4
2.4
9.7
14.1
17.8
21.3
24.3
26.4
28.6
36.3
14.5
Percent of Total
1.6
8.1
12.2
13.4
11.3
21.7
11.7
10.9
4.2
1.5
3.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
(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.
2.1
9.9
13.9
14.1
11.3
20.8
10.8
9.7
3.6
1.3
2.7
100.0
Share of Federal
Taxes
Percent of Total
-0.8
-3.0
2.0
8.9
11.0
26.6
17.2
18.3
7.7
3.0
9.0
100.0
With Pref.
Rates
-7.1
-5.4
2.4
9.7
14.1
17.7
21.2
24.1
25.0
26.7
30.4
14.1
13-Oct-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2008
2
dollars)
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 Tax Benefit
Without Tax
Benefit
0.0
0.0
0.4
1.7
4.2
9.7
17.1
32.8
61.9
82.1
91.0
14.9
100.0
100.0
99.6
98.3
95.8
90.3
82.9
67.2
38.1
17.9
9.0
85.1
Benefit as
Percent of
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.8
1.9
7.7
1.3
Share of Total
Federal Tax
Benefits
0.0
0.0
0.0
0.0
0.1
0.4
1.0
4.6
9.9
9.0
75.0
100.0
Average Federal Tax Benefits
Dollars
0
0
0
1
7
22
77
226
1,645
9,138
158,217
930
As Percent of
Tax
0.0
0.0
-0.4
0.1
0.1
0.2
0.5
0.7
2.1
4.6
14.0
4.4
Share of Federal Taxes
Change due to Pref.
Rates
With Pref.
Rates
0.0
0.0
0.0
0.1
0.1
0.3
0.4
1.1
0.5
0.0
-2.4
0.0
-0.2
-0.8
-0.1
1.4
2.2
7.6
10.0
29.4
21.0
8.5
20.9
100.0
Share of Pre-Tax
Income
Share of PostTax Income
Percent of
Total
5
Average Federal Tax Rate
Change due to
Pref. Rates
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.6
-1.3
-5.0
-1.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
Cash Income Level
(thousands of 2008
2
dollars)
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)
2,701
5,494
5,603
4,726
3,756
7,394
5,839
9,103
2,690
442
212
48,094
Percent of Total
5.6
11.4
11.7
9.8
7.8
15.4
12.1
18.9
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
5,981
15,478
25,399
35,550
45,850
63,220
89,123
139,015
288,713
693,043
3,179,388
95,281
Average
Federal Tax
Burden
(Dollars)
-680
-1,402
-88
2,803
5,797
10,112
16,877
31,992
78,308
199,126
1,128,151
21,383
Average After4
Tax Income
(Dollars)
6,662
16,880
25,487
32,747
40,053
53,108
72,246
107,023
210,405
493,917
2,051,238
73,897
Average
Federal Tax
5
Rate
-11.4
-9.1
-0.4
7.9
12.6
16.0
18.9
23.0
27.1
28.7
35.5
22.4
Percent of Total
0.4
1.9
3.1
3.7
3.8
10.2
11.4
27.6
17.0
6.7
14.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
Note: Tax units with
(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.
0.5
2.6
4.0
4.4
4.2
11.1
11.9
27.4
15.9
6.2
12.2
100.0
Share of Federal
Taxes
Percent of Total
-0.2
-0.8
-0.1
1.3
2.1
7.3
9.6
28.3
20.5
8.6
23.3
100.0
With Pref.
Rates
-11.4
-9.1
-0.4
7.9
12.6
16.0
18.9
22.9
26.6
27.4
30.5
21.5
13-Oct-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0235
Preferential Rates for Capital Gains and Qualifying Dividends
Distribution of Federal Tax Benefits by Cash Income Level, 2009 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2008
2
dollars)
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 Tax Benefit
Without Tax
Benefit
0.0
3.4
11.2
15.8
22.4
40.4
54.1
68.1
83.2
91.8
95.8
27.3
100.0
96.6
88.8
84.2
77.6
59.6
46.0
31.9
16.8
8.2
4.2
72.7
Benefit as
Percent of
After-Tax
4
Income
0.0
0.0
0.1
0.1
0.2
0.4
0.7
1.3
3.0
5.5
11.2
2.8
Share of Total
Federal Tax
Benefits
0.0
0.1
0.2
0.2
0.3
2.0
2.8
9.4
14.9
12.4
57.7
100.0
Average Federal Tax Benefits
Dollars
0
4
25
46
80
235
529
1,402
6,513
26,582
216,966
1,655
As Percent of
Tax
0.0
0.9
1.9
2.1
2.2
3.1
4.0
5.1
8.4
12.4
18.2
10.5
Share of Federal Taxes
Change due to Pref.
Rates
With Pref.
Rates
0.0
0.1
0.1
0.1
0.1
0.6
0.5
1.1
0.4
-0.2
-2.9
0.0
0.1
0.7
1.3
1.1
1.5
7.3
8.1
20.4
19.1
10.2
30.3
100.0
Share of Pre-Tax
Income
Share of PostTax Income
Percent of
Total
5
Average Federal Tax Rate
Change due to
Pref. Rates
0.0
0.0
-0.1
-0.1
-0.2
-0.4
-0.6
-1.0
-2.2
-3.8
-6.9
-2.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
Cash Income Level
(thousands of 2008
2
dollars)
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)
2,765
6,689
4,053
2,142
1,714
4,095
2,542
3,191
1,082
221
126
28,639
Percent of Total
9.7
23.4
14.2
7.5
6.0
14.3
8.9
11.1
3.8
0.8
0.4
100.0
Average
Income
(Dollars)
6,577
15,129
24,891
35,242
46,021
63,445
88,251
137,801
298,445
696,175
3,134,426
75,721
Average
Federal Tax
Burden
(Dollars)
181
401
1,288
2,154
3,617
7,490
13,385
27,343
78,021
214,634
1,191,411
15,834
Average After4
Tax Income
(Dollars)
6,396
14,728
23,602
33,088
42,404
55,956
74,866
110,458
220,424
481,542
1,943,015
59,888
Average
Federal Tax
5
Rate
2.8
2.7
5.2
6.1
7.9
11.8
15.2
19.8
26.1
30.8
38.0
20.9
Percent of Total
0.8
4.7
4.7
3.5
3.6
12.0
10.3
20.3
14.9
7.1
18.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
(1) Calendar year. Benefits of the preferential rates on capital gains and qualifying dividends are measured against a current law baseline.
Note: Elderly tax
(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.
1.0
5.7
5.6
4.1
4.2
13.4
11.1
20.6
13.9
6.2
14.3
100.0
Share of Federal
Taxes
Percent of Total
0.1
0.6
1.2
1.0
1.4
6.8
7.5
19.2
18.6
10.5
33.1
100.0
With Pref.
Rates
2.8
2.6
5.1
6.0
7.7
11.4
14.6
18.8
24.0
27.0
31.1
18.7