29-Jan-09
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 T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile, 2009
Summary Table
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
72.5
91.9
97.7
97.6
98.0
89.7
0.0
0.0
0.0
0.0
0.1
0.0
3.8
2.6
1.8
1.9
2.2
2.2
7.9
11.2
12.1
17.4
51.3
100.0
-392
-660
-779
-1,349
-4,477
-1,295
-3.7
-2.4
-1.5
-1.5
-1.6
-1.7
1.0
8.3
15.3
18.3
24.6
20.0
97.2
99.2
98.7
96.8
99.2
0.1
0.0
0.2
0.1
0.0
2.7
2.8
2.4
1.3
1.7
16.2
11.4
13.5
10.2
6.1
-2,791
-4,088
-5,899
-17,540
-104,046
-2.1
-2.1
-1.7
-0.9
-1.2
20.6
22.3
24.6
28.6
30.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the
provisions until filing their 2009 tax returns in April of 2010. The business tax provisions are measured on a net present value basis.
Number of AMT Taxpayers (millions). Baseline: 30.3
Proposal: 4.6
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions
include the Making Work Pay Credit equal to 6.2% of earned income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000
for joint filers). The earned income tax credit percentage for families with three or more qualifying children is increased to 45 percent and the threshold phase-out
amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is
reduced to $6,000. The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phaseout thresholds are increased to AGI $80,000 ($160,000 for joint filers), textbooks are made a qualifying expense and thirty percent of the credit is made refundable. Up
to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are increased to $46,700 ($70,950 for joint filers) and personal
credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired
during 2009, temporary increase in limitation on expensing of certain depreciable business assets, and a 5 year carryback of 2008 and 2009 NOLs
with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2008 dollars): 20% $18,981, 40% $37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918, 99% $603,402, 99.9% $2,871,682.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile, 2009 1
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
72.5
91.9
97.7
97.6
98.0
89.7
0.0
0.0
0.0
0.0
0.1
0.0
3.8
2.6
1.8
1.9
2.2
2.2
7.9
11.2
12.1
17.4
51.3
100.0
-392
-660
-779
-1,349
-4,477
-1,295
-78.2
-22.2
-8.9
-7.8
-6.1
-7.9
-0.6
-0.6
-0.1
0.0
1.3
0.0
0.2
3.4
10.6
17.9
67.9
100.0
-3.7
-2.4
-1.5
-1.5
-1.6
-1.7
1.0
8.3
15.3
18.3
24.6
20.0
97.2
99.2
98.7
96.8
99.2
0.1
0.0
0.2
0.1
0.0
2.7
2.8
2.4
1.3
1.7
16.2
11.4
13.5
10.2
6.1
-2,791
-4,088
-5,899
-17,540
-104,046
-9.1
-8.7
-6.6
-3.1
-3.7
-0.2
-0.1
0.2
1.3
0.6
13.9
10.3
16.6
27.1
13.6
-2.1
-2.1
-1.7
-0.9
-1.2
20.6
22.3
24.6
28.6
30.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2009 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
39,102
32,942
30,075
25,152
22,287
150,241
26.0
21.9
20.0
16.7
14.8
100.0
10,744
28,057
51,924
87,992
279,244
75,289
501
2,980
8,717
17,415
73,229
16,327
10,243
25,076
43,207
70,577
206,015
58,962
4.7
10.6
16.8
19.8
26.2
21.7
3.7
8.2
13.8
19.6
55.0
100.0
4.5
9.3
14.7
20.0
51.8
100.0
0.8
4.0
10.7
17.9
66.5
100.0
11,264
5,439
4,454
1,131
114
7.5
3.6
3.0
0.8
0.1
135,143
192,266
340,985
1,889,937
8,929,410
30,642
46,915
89,899
558,384
2,798,307
104,500
145,351
251,086
1,331,553
6,131,103
22.7
24.4
26.4
29.6
31.3
13.5
9.3
13.4
18.9
9.0
13.3
8.9
12.6
17.0
7.9
14.1
10.4
16.3
25.7
13.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3
Proposal: 4.6
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of
earned income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children
is increased to 45 percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is
reduced to $6,000. The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000
for joint filers), textbooks are made a qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increa
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2008 dollars): 20% $18,981,
40% $37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918, 99% $603,402, 99.9% $2,871,682.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
74.8
85.2
96.3
98.4
96.8
89.7
0.0
0.0
0.0
0.0
0.1
0.0
5.0
2.7
2.1
2.2
2.0
2.2
8.3
9.8
11.9
19.9
49.9
100.0
-498
-616
-796
-1,360
-3,408
-1,295
-442.5
-28.5
-11.0
-9.1
-5.6
-7.9
-0.7
-0.6
-0.3
-0.2
1.8
0.0
-0.6
2.1
8.3
17.1
72.9
100.0
-5.0
-2.4
-1.7
-1.8
-1.5
-1.7
-3.8
6.1
14.0
17.7
24.6
20.0
98.4
93.6
96.9
96.5
99.1
0.0
0.1
0.1
0.4
0.0
2.3
2.3
2.2
1.3
1.7
15.4
10.3
13.4
10.8
6.4
-2,090
-2,793
-4,643
-15,418
-91,876
-8.0
-7.1
-6.1
-3.2
-3.7
0.0
0.1
0.3
1.4
0.6
15.3
11.7
17.7
28.2
14.2
-1.8
-1.7
-1.6
-0.9
-1.2
20.9
22.5
24.4
28.5
30.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2009 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
32,429
30,972
29,186
28,494
28,475
150,241
21.6
20.6
19.4
19.0
19.0
100.0
10,059
25,261
46,073
76,773
235,357
75,289
112
2,162
7,242
14,943
61,187
16,327
9,946
23,100
38,832
61,830
174,170
58,962
1.1
8.6
15.7
19.5
26.0
21.7
2.9
6.9
11.9
19.3
59.3
100.0
3.6
8.1
12.8
19.9
56.0
100.0
0.2
2.7
8.6
17.4
71.0
100.0
14,316
7,191
5,606
1,362
135
9.5
4.8
3.7
0.9
0.1
115,555
163,422
292,160
1,640,591
7,862,950
26,212
39,476
75,889
482,916
2,460,647
89,342
123,946
216,271
1,157,676
5,402,303
22.7
24.2
26.0
29.4
31.3
14.6
10.4
14.5
19.8
9.4
14.4
10.1
13.7
17.8
8.2
15.3
11.6
17.3
26.8
13.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3
Proposal: 4.6
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of
earned income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children
is increased to 45 percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is
reduced to $6,000. The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000
for joint filers), textbooks are made a qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increa
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99%
$359,711, 99.9% $1,730,730.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20091
Detail Table - Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
68.2
77.4
95.2
97.6
91.0
83.3
0.0
0.0
0.0
0.0
0.1
0.0
3.9
2.1
1.8
1.3
1.2
1.6
14.7
15.5
18.7
16.8
34.0
100.0
-278
-357
-506
-543
-1,328
-524
-53.9
-17.3
-8.5
-4.8
-3.3
-5.8
-0.8
-0.6
-0.4
0.2
1.6
0.0
0.8
4.6
12.4
20.9
61.2
100.0
-3.6
-1.9
-1.5
-1.0
-0.9
-1.3
3.1
9.0
16.2
19.8
25.5
20.1
96.0
79.7
91.4
95.3
98.4
0.0
0.3
0.3
0.0
0.0
1.0
0.7
1.4
1.6
2.0
8.1
4.0
10.1
11.8
6.3
-602
-623
-2,160
-11,907
-71,452
-3.1
-2.2
-4.2
-3.5
-3.7
0.4
0.4
0.2
0.5
0.2
15.7
11.1
14.1
20.4
10.1
-0.7
-0.5
-1.1
-1.1
-1.3
22.8
23.9
24.3
30.5
33.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2009
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
17,979
14,788
12,570
10,552
8,719
64,958
27.7
22.8
19.4
16.2
13.4
100.0
7,650
19,082
33,514
54,870
151,432
42,053
516
2,070
5,946
11,411
39,958
8,992
7,135
17,012
27,569
43,459
111,475
33,060
4,605
2,193
1,584
338
30
7.1
3.4
2.4
0.5
0.1
82,197
116,199
201,882
1,087,643
5,550,592
19,332
28,380
51,224
343,531
1,927,489
62,864
87,819
150,659
744,112
3,623,103
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
6.7
10.9
17.7
20.8
26.4
21.4
5.0
10.3
15.4
21.2
48.3
100.0
6.0
11.7
16.1
21.4
45.3
100.0
1.6
5.2
12.8
20.6
59.6
100.0
23.5
24.4
25.4
31.6
34.7
13.9
9.3
11.7
13.5
6.1
13.5
9.0
11.1
11.7
5.0
15.2
10.7
13.9
19.9
9.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010.
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of earned
income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children is increased to
percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is reduced to $6,000. The HOPE
credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000 for joint filers), textbooks are made a
qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are increased to $46,700 ($70,950 for joint filers) and
personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increase in limitation on expensing of certain depreciable bus
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20091
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
76.2
88.8
96.3
98.9
99.6
94.6
0.0
0.0
0.0
0.0
0.0
0.0
5.8
3.3
2.2
2.6
2.2
2.4
3.7
6.2
9.1
21.4
59.5
100.0
-763
-987
-1,124
-1,969
-4,477
-2,298
-667.1
-38.0
-13.2
-11.3
-6.2
-8.1
-0.3
-0.4
-0.3
-0.5
1.6
0.0
-0.3
0.9
5.3
14.8
79.2
100.0
-5.7
-3.1
-1.9
-2.1
-1.6
-1.8
-4.9
5.0
12.4
16.6
24.3
20.8
99.8
99.9
99.2
97.6
99.3
0.0
0.0
0.1
0.0
0.0
2.8
2.7
2.4
1.3
1.7
18.8
13.2
15.9
11.6
6.9
-2,945
-3,843
-5,758
-16,393
-96,901
-9.8
-8.6
-6.6
-3.1
-3.7
-0.3
-0.1
0.3
1.6
0.7
15.2
12.5
19.8
31.7
15.7
-2.2
-2.1
-1.7
-0.9
-1.1
20.1
22.0
24.4
28.1
29.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2009
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
6,621
8,578
11,027
14,829
18,163
59,479
11.1
14.4
18.5
24.9
30.5
100.0
13,343
32,397
59,438
93,284
278,505
125,155
114
2,601
8,506
17,455
72,051
28,353
13,229
29,796
50,932
75,829
206,454
96,802
8,717
4,700
3,780
965
97
14.7
7.9
6.4
1.6
0.2
134,567
186,829
332,302
1,813,978
8,464,842
30,028
44,909
86,888
525,568
2,593,746
104,539
141,920
245,414
1,288,411
5,871,096
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.9
8.0
14.3
18.7
25.9
22.7
1.2
3.7
8.8
18.6
68.0
100.0
1.5
4.4
9.8
19.5
65.1
100.0
0.0
1.3
5.6
15.4
77.6
100.0
22.3
24.0
26.2
29.0
30.6
15.8
11.8
16.9
23.5
11.1
15.8
11.6
16.1
21.6
9.9
15.5
12.5
19.5
30.1
14.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010.
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of earned
income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children is increased to
percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is reduced to $6,000. The HOPE
credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000 for joint filers), textbooks are made a
qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are increased to $46,700 ($70,950 for joint filers) and
personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increase in limitation on expensing of certain depreciable bus
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20091
Detail Table - Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
88.6
96.5
98.8
98.9
96.4
94.6
0.0
0.0
0.0
0.0
0.0
0.0
5.7
2.5
1.9
2.0
1.6
2.5
29.3
24.9
19.1
14.9
11.8
100.0
-793
-707
-799
-1,228
-2,134
-878
89.9
-40.4
-10.4
-8.0
-4.7
-15.4
-6.3
-2.8
1.7
2.5
4.9
0.0
-11.3
6.7
29.8
31.2
43.5
100.0
-6.1
-2.4
-1.6
-1.6
-1.2
-2.2
-12.9
3.5
13.9
18.7
24.1
12.0
97.1
94.6
96.7
89.2
98.6
0.0
0.0
0.0
0.0
0.0
1.7
1.9
1.6
1.2
1.6
5.1
2.2
2.5
2.0
1.2
-1,439
-2,126
-3,209
-13,007
-85,474
-5.6
-5.8
-4.7
-3.0
-3.6
1.7
0.7
1.1
1.5
0.7
15.9
6.5
9.3
11.9
5.7
-1.3
-1.4
-1.2
-0.9
-1.1
22.2
23.1
23.8
28.4
29.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2009
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
7,558
7,198
4,877
2,482
1,128
23,292
32.5
30.9
20.9
10.7
4.8
100.0
12,952
29,592
49,284
75,584
179,427
40,351
-882
1,748
7,665
15,365
45,427
5,702
13,834
27,844
41,618
60,219
134,000
34,650
730
209
158
31
3
3.1
0.9
0.7
0.1
0.0
109,967
149,881
276,495
1,510,258
7,770,538
25,852
36,811
69,076
441,162
2,410,886
84,115
113,070
207,418
1,069,096
5,359,652
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-6.8
5.9
15.6
20.3
25.3
14.1
10.4
22.7
25.6
20.0
21.5
100.0
13.0
24.8
25.2
18.5
18.7
100.0
-5.0
9.5
28.2
28.7
38.6
100.0
23.5
24.6
25.0
29.2
31.0
8.6
3.3
4.7
5.0
2.3
7.6
2.9
4.1
4.1
1.8
14.2
5.8
8.2
10.4
5.0
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010.
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of earned
income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children is increased to
percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is reduced to $6,000. The HOPE
credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000 for joint filers), textbooks are made a
qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are increased to $46,700 ($70,950 for joint filers) and
personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increase in limitation on expensing of certain depreciable bus
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table - Tax Units with Children
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
93.3
99.4
99.7
99.8
98.9
98.2
0.0
0.0
0.0
0.0
0.0
0.0
6.7
3.4
2.3
3.2
2.4
2.8
9.8
10.6
12.4
24.1
42.9
100.0
-1,029
-1,059
-1,202
-2,553
-5,301
-2,104
84.3
-52.0
-12.6
-12.4
-6.4
-10.3
-1.3
-1.0
-0.3
-0.5
3.0
0.0
-2.5
1.1
9.9
19.5
71.8
100.0
-7.3
-3.2
-2.0
-2.5
-1.7
-2.2
-15.9
2.9
13.6
17.9
25.2
19.3
99.0
99.9
98.2
95.9
99.2
0.0
0.0
0.1
0.2
0.0
3.5
3.3
2.0
1.1
1.6
17.2
10.4
9.0
6.4
4.1
-4,057
-5,372
-5,795
-16,979
-112,736
-11.1
-9.7
-5.4
-2.6
-3.5
-0.1
0.1
0.9
2.1
0.9
15.8
11.1
18.0
26.9
12.9
-2.7
-2.5
-1.5
-0.8
-1.1
21.2
23.0
25.7
29.2
30.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2009 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
9,648
10,138
10,440
9,539
8,194
48,094
20.1
21.1
21.7
19.8
17.0
100.0
14,150
33,628
61,157
101,199
306,666
95,281
-1,220
2,036
9,541
20,635
82,662
20,453
15,370
31,591
51,616
80,564
224,004
74,827
4,292
1,951
1,572
379
37
8.9
4.1
3.3
0.8
0.1
153,064
218,471
392,713
2,144,629
10,295,847
36,572
55,618
106,796
644,140
3,201,831
116,491
162,854
285,917
1,500,489
7,094,016
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.6
6.1
15.6
20.4
27.0
21.5
3.0
7.4
13.9
21.1
54.8
100.0
4.1
8.9
15.0
21.4
51.0
100.0
-1.2
2.1
10.1
20.0
68.9
100.0
23.9
25.5
27.2
30.0
31.1
14.3
9.3
13.5
17.7
8.3
13.9
8.8
12.5
15.8
7.3
16.0
11.0
17.1
24.8
12.0
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of
earned income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children
is increased to 45 percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is
reduced to $6,000. The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000
for joint filers), textbooks are made a qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increa
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99%
$359,711, 99.9% $1,730,730.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0062
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table - Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
36.3
57.8
84.0
94.4
97.9
72.3
0.0
0.0
0.0
0.0
0.0
0.0
0.8
0.7
0.9
1.1
2.0
1.6
1.7
4.1
5.4
13.0
75.8
100.0
-79
-147
-335
-663
-3,630
-951
-35.0
-17.0
-12.1
-7.7
-6.1
-6.7
-0.1
-0.2
-0.2
-0.1
0.6
0.0
0.2
1.4
2.8
11.1
84.4
100.0
-0.8
-0.7
-0.8
-1.0
-1.5
-1.3
1.5
3.4
5.9
11.3
22.8
17.5
97.6
96.4
99.6
99.1
99.7
0.0
0.0
0.1
0.2
0.0
1.6
1.8
2.5
1.9
2.1
12.5
11.4
24.6
27.3
14.0
-1,366
-2,114
-5,048
-19,014
-96,077
-7.6
-7.3
-8.1
-4.4
-4.4
-0.1
-0.1
-0.3
1.0
0.5
10.9
10.4
20.2
42.8
21.8
-1.3
-1.4
-1.9
-1.3
-1.4
15.7
18.1
21.6
28.6
30.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2009 1
4
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
5,675
7,562
4,371
5,321
5,689
28,639
19.8
26.4
15.3
18.6
19.9
100.0
9,958
21,260
41,175
69,880
246,281
75,721
227
867
2,776
8,567
59,798
14,178
9,731
20,393
38,398
61,313
186,483
61,543
2,500
1,471
1,329
391
40
8.7
5.1
4.6
1.4
0.1
105,353
147,862
266,234
1,451,124
6,768,885
17,930
28,932
62,613
434,456
2,184,214
87,423
118,931
203,621
1,016,668
4,584,672
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
4.1
6.7
12.3
24.3
18.7
2.6
7.4
8.3
17.2
64.6
100.0
3.1
8.8
9.5
18.5
60.2
100.0
0.3
1.6
3.0
11.2
83.8
100.0
17.0
19.6
23.5
29.9
32.3
12.1
10.0
16.3
26.1
12.4
12.4
9.9
15.4
22.5
10.3
11.0
10.5
20.5
41.8
21.3
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law. For a description of "The American Recovery and Reinvestment Tax Act of 2009" see http://jct.gov/x-12-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of
earned income up to a maximum credit of $500 ($1,000 for joint filers) phased out above AGI $75,000 ($150,000 for joint filers). The earned income tax credit percentage for families with three or more qualifying children
is increased to 45 percent and the threshold phase-out amount for joint filers is increased to $5,000 above the phase-out threshold for single and head of household tax units. The child tax credit refundability threshold is
reduced to $6,000. The HOPE credit is made available for four years at a rate of 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. The phase-out thresholds are increased to AGI $80,000 ($160,000
for joint filers), textbooks are made a qualifying expense and thirty percent of the credit is made refundable. Up to $2,400 of unemployment benefits are excludable from gross income. The AMT exemptions for 2009 are
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability. Tax incentives for businesses include special allowance for certain property acquired during 2009, temporary increa
carryback of 2008 and 2009 NOLs with exception for TARP recipients.
(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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99%
$359,711, 99.9% $1,730,730.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.