19-Oct-05
Preliminary Results
http://www.taxpolicycenter.org
Table T05-0269
EGTRRA, JGTRRA, and WFTRA Made Permanent
Distribution of Federal Tax Change by Cash Income Class, 2010
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
5.3
51.2
79.1
86.7
91.9
95.9
95.7
93.0
90.8
98.1
99.0
74.0
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
0.1
1.2
2.4
2.4
2.2
2.2
2.2
2.3
2.5
5.3
7.3
2.9
Share of
Total Federal
Tax Change
0.1
1.9
4.9
5.0
4.5
10.6
9.1
18.6
11.1
8.9
25.0
100.0
Average Federal Tax Change
Dollars
-7
-195
-572
-765
-886
-1,187
-1,655
-2,593
-5,721
-28,145
-154,515
-1,635
Percent
-2.7
-19.2
-17.0
-12.2
-9.6
-8.3
-7.6
-6.8
-6.4
-12.6
-14.3
-9.3
1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.1
0.0
0.1
0.2
0.7
0.5
-0.2
-0.9
0.0
Under the
Proposal
0.2
0.8
2.5
3.7
4.4
12.0
11.4
26.3
16.7
6.3
15.5
100.0
Average Federal Tax Rate5
Change (%
Points)
Under the
Proposal
-0.1
-1.2
-2.1
-2.0
-1.8
-1.7
-1.7
-1.7
-1.8
-3.7
-4.8
-2.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Class, 2010 1
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)
17,298
24,828
21,679
16,440
12,893
22,442
13,870
18,051
4,875
794
408
154,170
Percent of
Total
11.2
16.1
14.1
10.7
8.4
14.6
9.0
11.7
3.2
0.5
0.3
100.0
Average
Income
(Dollars)
6,190
16,653
27,490
38,628
49,638
68,192
95,865
149,322
317,752
752,123
3,203,897
73,696
Average
Federal Tax
Burden
(Dollars)
264
1,015
3,367
6,282
9,247
14,275
21,729
38,222
89,504
223,207
1,084,191
17,497
Average
After-Tax
Income4
(Dollars)
5,926
15,638
24,123
32,346
40,391
53,917
74,136
111,100
228,248
528,916
2,119,706
56,199
Average
Federal Tax
Rate5
4.3
6.1
12.3
16.3
18.6
20.9
22.7
25.6
28.2
29.7
33.8
23.7
Share of PreTax Income
Percent of
Total
0.9
3.6
5.3
5.6
5.6
13.5
11.7
23.7
13.6
5.3
11.5
100.0
Share of PostTax Income
Percent of
Total
1.2
4.5
6.0
6.1
6.0
14.0
11.9
23.2
12.8
4.8
10.0
100.0
Share of
Federal Taxes
Percent of
Total
0.2
0.9
2.7
3.8
4.4
11.9
11.2
25.6
16.2
6.6
16.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
(1) Calendar year. Baseline is pre-EGTRRA law. Includes provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the Jobs and Growth Tax Relief
Reconciliation Act of 2003 (JGTRRA), and the Working Families Tax Relief Act of 2004 (WFTRA) affecting the following: marginal tax rates; the 10-percent bracket; the child tax credit; the
child and dependent care credit; the AMT; the personal exemption phaseout (PEP); the limitation on itemized deductions (Pease); the standard deduction, 15-percent bracket, and EITC for
married couples; tax rates on long-term capital gains and dividends; pension and IRA provisions; student loan interest deduction (excludes other education provisions); and estate tax
exemption, rates, and state death tax credit. Assumes all non-AMT provisions, other than the saver's credit, are made permanent, as outlined in the Administration's FY2006 budget proposal.
(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.
4.2
4.9
10.2
14.3
16.8
19.2
20.9
23.9
26.4
25.9
29.0
21.5