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.
1
Cash Income Percentile
2,3
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
62.9
80.2
87.9
84.5
53.3
73.8
76.2
53.4
7.8
3.7
0.8
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
Income
2.7
1.9
1.3
1.0
0.2
0.8
5
Share of Total
Federal Tax
Change
15.0
21.7
24.3
23.9
14.9
100.0
Average
Federal Tax
Change ($)
-272
-468
-575
-676
-476
-473
Average Federal Tax Rate
Change (%
Points)
-2.5
-1.7
-1.1
-0.8
-0.2
-0.6
Proposal
2.1
9.0
15.7
19.0
26.1
21.1
6
Under the
0.7
0.3
0.0
0.0
0.0
11.7
2.8
0.4
0.1
0.0
-738
-369
-59
-31
-7
-0.6
-0.2
0.0
0.0
0.0
22.1
24.2
26.4
29.5
31.3
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: 30.3
(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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile, 2009
1
Detail Table
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
62.9
80.2
87.9
84.5
53.3
73.8
0.0
0.0
0.0
0.0
0.0
0.0
76.2
53.4
7.8
3.7
0.8
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
2.7
1.9
1.3
1.0
0.2
0.8
15.0
21.7
24.3
23.9
14.9
100.0
0.7
0.3
0.0
0.0
0.0
11.7
2.8
0.4
0.1
0.0
Average Federal Tax Change
Dollars Percent
-272
-468
-575
-676
-476
-473
-54.4
-15.7
-6.6
-3.9
-0.7
-2.9
-738
-369
-59
-31
-7
-2.4
-0.8
-0.1
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.4
-0.5
-0.4
-0.2
1.5
0.0
0.4
3.5
10.3
17.7
68.1
100.0
0.1
0.2
0.5
0.8
0.4
14.1
10.6
16.8
26.5
13.4
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-2.5
-1.7
-1.1
-0.8
-0.2
-0.6
2.1
9.0
15.7
19.0
26.1
21.1
-0.6
-0.2
0.0
0.0
0.0
22.1
24.2
26.4
29.5
31.3
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
11,264
5,439
4,454
1,131
114
Tax Units
(thousands)
39,102
32,942
30,075
25,152
22,287
150,241
4
Percent of
Total
26.0
21.9
20.0
16.7
14.8
100.0
7.5
3.6
3.0
0.8
0.1
Average
Income
(Dollars)
10,744
28,057
51,924
87,992
279,244
75,289
135,143
192,266
340,985
1,889,937
8,929,410
Average
Federal Tax
Burden
(Dollars)
501
2,980
8,717
17,415
73,229
16,327
30,642
46,915
89,899
558,384
2,798,307
Average After-
Tax Income
5
(Dollars)
10,243
25,076
43,207
70,577
206,015
58,962
104,500
145,351
251,086
1,331,553
6,131,103
Average
Federal Tax
Rate
6
4.7
10.6
16.8
19.8
26.2
21.7
22.7
24.4
26.4
29.6
31.3
Share of Pre-
Tax Income
Percent of
Total
3.7
8.2
13.8
19.6
55.0
100.0
13.5
9.3
13.4
18.9
9.0
Share of Post-
Tax Income
Percent of
Total
4.5
9.3
14.7
20.0
51.8
100.0
13.3
8.9
12.6
17.0
7.9
Share of
Federal Taxes
Percent of
Total
0.8
4.0
10.7
17.9
66.5
100.0
14.1
10.4
16.3
25.7
13.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3 Proposal: 30.3
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009
1
Detail Table
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
67.5
73.3
86.7
87.6
55.3
73.8
0.0
0.0
0.0
0.0
0.0
0.0
82.6
46.0
9.8
4.5
0.7
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
3.1
1.9
1.5
1.1
0.2
0.8
14.0
19.5
23.8
25.9
16.7
100.0
0.7
0.3
0.0
0.0
0.0
12.6
3.5
0.5
0.1
0.0
Average Federal Tax Change
Dollars Percent
-307
-447
-579
-646
-416
-473
-273.1
-20.7
-8.0
-4.3
-0.7
-2.9
-626
-347
-62
-34
-6
-2.4
-0.9
-0.1
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.4
-0.5
-0.5
-0.3
1.6
0.0
-0.3
2.2
8.2
17.1
72.7
100.0
0.1
0.2
0.5
0.8
0.4
15.4
11.8
17.9
27.6
13.9
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-3.1
-1.8
-1.3
-0.8
-0.2
-0.6
-1.9
6.8
14.5
18.6
25.8
21.1
-0.5
-0.2
0.0
0.0
0.0
22.1
23.9
26.0
29.4
31.3
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
32,429
30,972
29,186
28,494
28,475
150,241
14,316
7,191
5,606
1,362
135
Tax Units
(thousands)
4
Percent of
Total
21.6
20.6
19.4
19.0
19.0
100.0
9.5
4.8
3.7
0.9
0.1
Average
Income
(Dollars)
10,059
25,261
46,073
76,773
235,357
75,289
115,555
163,422
292,160
1,640,591
7,862,950
Average
Federal Tax
Burden
(Dollars)
112
2,162
7,242
14,943
61,187
16,327
26,212
39,476
75,889
482,916
2,460,647
Average After-
Tax Income
5
(Dollars)
9,946
23,100
38,832
61,830
174,170
58,962
89,342
123,946
216,271
1,157,676
5,402,303
Average
Federal Tax
Rate
6
1.1
8.6
15.7
19.5
26.0
21.7
22.7
24.2
26.0
29.4
31.3
Share of Pre-
Tax Income
Percent of
Total
2.9
6.9
11.9
19.3
59.3
100.0
14.6
10.4
14.5
19.8
9.4
Share of Post-
Tax Income
Percent of
Total
3.6
8.1
12.8
19.9
56.0
100.0
14.4
10.1
13.7
17.8
8.2
Share of
Federal Taxes
Percent of
Total
0.2
2.7
8.6
17.4
71.0
100.0
15.3
11.6
17.3
26.8
13.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-07).
Number of AMT Taxpayers (millions). Baseline: 30.3 Proposal: 30.3
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009
1
Detail Table - Single Tax Units
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
59.8
61.0
82.6
84.2
46.7
66.6
0.0
0.0
0.0
0.0
0.0
0.0
78.5
16.0
5.7
4.0
0.3
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
3.0
1.7
1.5
1.0
0.2
0.9
20.0
22.2
26.2
22.6
8.9
100.0
0.6
0.1
0.0
0.0
0.0
8.2
0.5
0.2
0.0
0.0
Average Federal Tax Change
Dollars Percent
-215
-291
-405
-415
-197
-299
-41.8
-14.0
-6.8
-3.6
-0.5
-3.3
-343
-44
-22
-19
-1
-1.8
-0.2
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.6
-0.6
-0.5
-0.1
1.7
0.0
1.0
4.7
12.3
20.6
61.4
100.0
0.2
0.4
0.5
0.7
0.3
15.5
11.0
14.4
20.5
10.2
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-2.8
-1.5
-1.2
-0.8
-0.1
-0.7
3.9
9.3
16.5
20.0
26.3
20.7
-0.4
0.0
0.0
0.0
0.0
23.1
24.4
25.4
31.6
34.7
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
17,979
14,788
12,570
10,552
8,719
64,958
4,605
2,193
1,584
338
30
Tax Units
(thousands)
4
Percent of
Total
27.7
22.8
19.4
16.2
13.4
100.0
7.1
3.4
2.4
0.5
0.1
Average
Income
(Dollars)
7,650
19,082
33,514
54,870
151,432
42,053
82,197
116,199
201,882
1,087,643
5,550,592
Average
Federal Tax
Burden
(Dollars)
516
2,070
5,946
11,411
39,958
8,992
19,332
28,380
51,224
343,531
1,927,489
Average After-
Tax Income
5
(Dollars)
7,135
17,012
27,569
43,459
111,475
33,060
62,864
87,819
150,659
744,112
3,623,103
Average
Federal Tax
Rate
6
6.7
10.9
17.7
20.8
26.4
21.4
23.5
24.4
25.4
31.6
34.7
Share of Pre-
Tax Income
Percent of
Total
5.0
10.3
15.4
21.2
48.3
100.0
13.9
9.3
11.7
13.5
6.1
Share of Post-
Tax Income
Percent of
Total
6.0
11.7
16.1
21.4
45.3
100.0
13.5
9.0
11.1
11.7
5.0
Share of
Federal Taxes
Percent of
Total
1.6
5.2
12.8
20.6
59.6
100.0
15.2
10.7
13.9
19.9
9.9
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009
1
Detail Table - Married Tax Units Filing Jointly
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
66.2
75.3
86.4
89.8
61.4
75.7
0.0
0.0
0.0
0.0
0.0
0.0
88.8
62.1
11.8
4.9
0.9
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
3.6
2.3
1.6
1.1
0.3
0.7
7.6
14.6
22.3
31.1
24.2
100.0
0.8
0.4
0.0
0.0
0.0
17.5
5.8
0.8
0.1
0.0
Average Federal Tax Change
Dollars Percent
-473
-696
-830
-861
-546
-690
-413.4
-26.8
-9.8
-4.9
-0.8
-2.4
-825
-508
-81
-41
-8
-2.8
-1.1
-0.1
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.2
-0.3
-0.4
-0.4
1.3
0.0
-0.1
1.0
5.1
15.0
78.9
100.0
-0.1
0.2
0.5
0.8
0.4
15.5
12.7
19.9
30.8
15.3
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-3.5
-2.2
-1.4
-0.9
-0.2
-0.6
-2.7
5.9
12.9
17.8
25.7
22.1
-0.6
-0.3
0.0
0.0
0.0
21.7
23.8
26.1
29.0
30.6
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
6,621
8,578
11,027
14,829
18,163
59,479
8,717
4,700
3,780
965
97
Tax Units
(thousands)
4
Percent of
Total
11.1
14.4
18.5
24.9
30.5
100.0
14.7
7.9
6.4
1.6
0.2
Average
Income
(Dollars)
13,343
32,397
59,438
93,284
278,505
125,155
134,567
186,829
332,302
1,813,978
8,464,842
Average
Federal Tax
Burden
(Dollars)
114
2,601
8,506
17,455
72,051
28,353
30,028
44,909
86,888
525,568
2,593,746
Average After-
Tax Income
5
(Dollars)
13,229
29,796
50,932
75,829
206,454
96,802
104,539
141,920
245,414
1,288,411
5,871,096
Average
Federal Tax
Rate
6
0.9
8.0
14.3
18.7
25.9
22.7
22.3
24.0
26.2
29.0
30.6
Share of Pre-
Tax Income
Percent of
Total
1.2
3.7
8.8
18.6
68.0
100.0
15.8
11.8
16.9
23.5
11.1
Share of Post-
Tax Income
Percent of
Total
1.5
4.4
9.8
19.5
65.1
100.0
15.8
11.6
16.1
21.6
9.9
Share of
Federal Taxes
Percent of
Total
0.0
1.3
5.6
15.4
77.6
100.0
15.5
12.5
19.5
30.1
14.9
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009
1
Detail Table - Head of Household Tax Units
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
86.5
94.8
96.4
88.8
24.7
88.3
0.0
0.0
0.0
0.0
0.0
0.0
34.7
9.4
2.9
0.9
0.5
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
2.8
1.7
1.2
0.7
0.1
1.2
29.6
34.9
24.0
10.3
1.2
100.0
0.2
0.0
0.0
0.0
0.0
1.1
0.1
0.0
0.0
0.0
Average Federal Tax Change
Dollars Percent
-380
-470
-479
-403
-102
-417
43.1
-26.9
-6.2
-2.6
-0.2
-7.3
-144
-36
-14
-4
-2
-0.6
-0.1
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-2.7
-2.0
0.3
1.5
3.0
0.0
-7.8
7.5
28.5
30.2
41.6
100.0
1.0
0.5
0.7
0.8
0.4
15.3
6.2
8.9
11.2
5.4
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-2.9
-1.6
-1.0
-0.5
-0.1
-1.0
-9.7
4.3
14.6
19.8
25.3
13.1
-0.1
0.0
0.0
0.0
0.0
23.4
24.5
25.0
29.2
31.0
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
7,558
7,198
4,877
2,482
1,128
23,292
730
209
158
31
3
Tax Units
(thousands)
4
Percent of
Total
32.5
30.9
20.9
10.7
4.8
100.0
3.1
0.9
0.7
0.1
0.0
Average
Income
(Dollars)
12,952
29,592
49,284
75,584
179,427
40,351
109,967
149,881
276,495
1,510,258
7,770,538
Average
Federal Tax
Burden
(Dollars)
-882
1,748
7,665
15,365
45,427
5,702
25,852
36,811
69,076
441,162
2,410,886
Average After-
Tax Income
5
(Dollars)
13,834
27,844
41,618
60,219
134,000
34,650
84,115
113,070
207,418
1,069,096
5,359,652
Average
Federal Tax
Rate
6
-6.8
5.9
15.6
20.3
25.3
14.1
23.5
24.6
25.0
29.2
31.0
Share of Pre-
Tax Income
Percent of
Total
10.4
22.7
25.6
20.0
21.5
100.0
8.6
3.3
4.7
5.0
2.3
Share of Post-
Tax Income
Percent of
Total
13.0
24.8
25.2
18.5
18.7
100.0
7.6
2.9
4.1
4.1
1.8
Share of
Federal Taxes
Percent of
Total
-5.0
9.5
28.2
28.7
38.6
100.0
14.2
5.8
8.2
10.4
5.0
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
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
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
92.1
98.7
98.6
97.0
51.7
88.9
0.0
0.0
0.0
0.0
0.0
0.0
83.1
30.8
4.3
1.4
0.4
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
3.3
2.1
1.5
1.1
0.2
0.9
15.4
21.5
25.7
25.9
11.4
100.0
0.6
0.1
0.0
0.0
0.0
10.0
1.2
0.2
0.0
0.0
Average Federal Tax Change
Dollars Percent
-507
-674
-782
-864
-442
-661
41.6
-33.1
-8.2
-4.2
-0.5
-3.2
-741
-196
-34
-11
-3
-2.0
-0.4
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.6
-0.7
-0.5
-0.2
1.9
0.0
-1.8
1.5
9.6
19.8
70.8
100.0
0.2
0.3
0.6
0.8
0.4
16.2
11.4
17.6
25.6
12.4
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-3.6
-2.0
-1.3
-0.9
-0.1
-0.7
-12.2
4.1
14.3
19.5
26.8
20.8
-0.5
-0.1
0.0
0.0
0.0
23.4
25.4
27.2
30.0
31.1
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
9,648
10,138
10,440
9,539
8,194
48,094
4,292
1,951
1,572
379
37
Tax Units
(thousands)
4
Percent of
Total
20.1
21.1
21.7
19.8
17.0
100.0
8.9
4.1
3.3
0.8
0.1
Average
Income
(Dollars)
14,150
33,628
61,157
101,199
306,666
95,281
153,064
218,471
392,713
2,144,629
10,295,847
Average
Federal Tax
Burden
(Dollars)
-1,220
2,036
9,541
20,635
82,662
20,453
36,572
55,618
106,796
644,140
3,201,831
Average After-
Tax Income
5
(Dollars)
15,370
31,591
51,616
80,564
224,004
74,827
116,491
162,854
285,917
1,500,489
7,094,016
Average
Federal Tax
Rate
6
-8.6
6.1
15.6
20.4
27.0
21.5
23.9
25.5
27.2
30.0
31.1
Share of Pre-
Tax Income
Percent of
Total
3.0
7.4
13.9
21.1
54.8
100.0
14.3
9.3
13.5
17.7
8.3
Share of Post-
Tax Income
Percent of
Total
4.1
8.9
15.0
21.4
51.0
100.0
13.9
8.8
12.5
15.8
7.3
Share of
Federal Taxes
Percent of
Total
-1.2
2.1
10.1
20.0
68.9
100.0
16.0
11.0
17.1
24.8
12.0
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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
Table T09-0070
"The American Recovery and Reinvestment Tax Act of 2009": Making Work Pay Credit
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
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
14.0
19.3
34.2
46.3
32.9
28.3
0.0
0.0
0.0
0.0
0.0
0.0
48.4
33.8
10.7
5.2
0.4
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.6
0.5
0.5
0.5
0.1
0.3
6.1
14.6
18.2
33.9
27.2
100.0
0.4
0.2
0.0
0.0
0.0
17.5
7.4
2.0
0.3
0.0
Average Federal Tax Change
Dollars Percent
-53
-96
-207
-317
-238
-174
-23.6
-11.1
-7.5
-3.7
-0.4
-1.2
-349
-250
-75
-36
-3
-2.0
-0.9
-0.1
0.0
0.0
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
-0.1
-0.2
-0.2
-0.3
0.7
0.0
0.3
1.5
2.8
11.0
84.5
100.0
-0.1
0.0
0.2
0.5
0.3
11.0
10.5
20.7
42.3
21.6
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
-0.5
-0.5
-0.5
-0.5
-0.1
-0.2
1.7
3.6
6.2
11.8
24.2
18.5
-0.3
-0.2
0.0
0.0
0.0
16.7
19.4
23.5
29.9
32.3
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2009
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
5,675
7,562
4,371
5,321
5,689
28,639
2,500
1,471
1,329
391
40
Tax Units
(thousands)
4
Percent of
Total
19.8
26.4
15.3
18.6
19.9
100.0
8.7
5.1
4.6
1.4
0.1
Average
Income
(Dollars)
9,958
21,260
41,175
69,880
246,281
75,721
105,353
147,862
266,234
1,451,124
6,768,885
Average
Federal Tax
Burden
(Dollars)
227
867
2,776
8,567
59,798
14,178
17,930
28,932
62,613
434,456
2,184,214
Average After-
Tax Income
5
(Dollars)
9,731
20,393
38,398
61,313
186,483
61,543
87,423
118,931
203,621
1,016,668
4,584,672
Average
Federal Tax
Rate
6
2.3
4.1
6.7
12.3
24.3
18.7
17.0
19.6
23.5
29.9
32.3
Share of Pre-
Tax Income
Percent of
Total
2.6
7.4
8.3
17.2
64.6
100.0
12.1
10.0
16.3
26.1
12.4
Share of Post-
Tax Income
Percent of
Total
3.1
8.8
9.5
18.5
60.2
100.0
12.4
9.9
15.4
22.5
10.3
Share of
Federal Taxes
Percent of
Total
0.3
1.6
3.0
11.2
83.8
100.0
11.0
10.5
20.5
41.8
21.3
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. Proposal models 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 at a rate of 4 percent of AGI exceeding $75,000 ($150,000 for joint filers).
(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.