23-Jun-06
Preliminary Results
http://www.taxpolicycenter.org
Table T06-0184
H.R. 5638 As Amended and Passed by The House, The Permanent Estate Tax Relief Act of 2006
Assuming 15 Percent Capital Gains Rate
Distribution of Federal Tax Change by Economic Income Class, 2011
Economic 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.4
0.7
1.0
0.0
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
0.0
0.0
0.0
0.0
0.0
0.1
0.4
1.0
1.3
0.7
0.3
Share of
Total Federal
Tax Change
0.0
0.0
0.0
0.0
0.1
0.7
2.2
18.9
34.5
18.5
24.8
100.0
Average Federal Tax Change
Dollars
0
0
0
-1
-1
-12
-78
-611
-3,578
-11,069
-27,192
-217
Percent
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-1.2
-3.2
-3.9
-2.2
-1.2
1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.1
0.2
0.1
0.0
-0.3
-0.2
-0.1
0.0
Under the
Proposal
0.3
2.1
5.1
6.7
7.4
16.2
11.2
18.8
12.6
5.6
13.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.3
-0.8
-1.0
-0.5
-0.3
Under the
Proposal
5.5
8.6
14.5
17.5
20.2
22.0
23.2
22.9
22.7
24.9
24.5
20.9
Baseline Distribution of Income and Federal Taxes
by Economic Income Class, 2011 1
Economic 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)
19,892
29,710
25,713
19,488
14,654
21,240
9,751
10,453
3,261
565
309
155,984
Percent of
Total
12.8
19.1
16.5
12.5
9.4
13.6
6.3
6.7
2.1
0.4
0.2
100.0
Average
Income
(Dollars)
8,391
22,969
37,580
54,174
69,398
96,219
138,307
218,417
474,020
1,111,260
5,045,581
85,093
Average
Federal Tax
Burden
(Dollars)
460
1,984
5,457
9,494
13,996
21,185
32,089
50,669
111,027
287,235
1,263,500
18,028
Average
After-Tax
Income4
(Dollars)
7,931
20,985
32,123
44,680
55,402
75,034
106,218
167,748
362,993
824,025
3,782,081
67,065
Average
Federal Tax
Rate5
5.5
8.6
14.5
17.5
20.2
22.0
23.2
23.2
23.4
25.9
25.0
21.2
Share of PreTax Income
Percent of
Total
1.3
5.1
7.3
8.0
7.7
15.4
10.2
17.2
11.7
4.7
11.7
100.0
Share of PostTax Income
Percent of
Total
1.5
6.0
7.9
8.3
7.8
15.2
9.9
16.8
11.3
4.5
11.2
100.0
Share of
Federal Taxes
Percent of
Total
0.3
2.1
5.0
6.6
7.3
16.0
11.1
18.8
12.9
5.8
13.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
(1) Calendar year. Baseline is current law plus the extension of the lower rates on capital gains and qualifying dividends enacted by JGTRRA. Provisions include: $5 million effective exemption indexed
for inflation after 2010; statutory rate of 15 percent on taxable estate between $5 million and $25 million and 30 percent on taxable estate greater than $25 million; repeal the state death tax credit (and do
not allow a deduction for state estate taxes paid); repeal the 5-percent surtax.
(2) Tax units with negative economic income are excluded from the lowest income class but are included in the totals. For classifier purposes, economic income has been adjusted for family
size by dividing by the square root of the number of members of the tax unit. For a further description of economic 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.