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 T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Summary Table
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 Cut
70.3
75.1
90.8
95.8
97.0
98.3
98.1
97.0
99.2
94.9
98.3
89.7
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.3
0.0
0.0
Percent
Change in
After-Tax
Income 4
4.8
3.5
2.8
2.3
1.9
1.7
1.9
2.6
2.6
0.9
1.5
2.2
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
2.3
6.3
6.5
5.2
4.5
9.6
9.7
28.4
16.5
2.3
8.6
100.0
-257
-505
-652
-701
-740
-859
-1,331
-2,807
-5,703
-4,522
-32,362
-1,295
Average Federal Tax Rate5
Change (%
Points)
-4.5
-3.3
-2.6
-2.0
-1.6
-1.4
-1.5
-2.0
-2.0
-0.7
-1.0
-1.7
Under the
Proposal
0.8
1.3
6.8
11.3
14.3
16.6
18.2
20.7
24.1
26.2
29.3
20.0
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 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 business assets, and a 5 year carryback of 2008 and 2009 NOLswith 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) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change 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 Cut
70.3
75.1
90.8
95.8
97.0
98.3
98.1
97.0
99.2
94.9
98.3
89.7
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.3
0.0
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
4.8
3.5
2.8
2.3
1.9
1.7
1.9
2.6
2.6
0.9
1.5
2.2
2.3
6.3
6.5
5.2
4.5
9.6
9.7
28.4
16.5
2.3
8.6
100.0
Average Federal Tax Change
Dollars
Percent
-257
-505
-652
-701
-740
-859
-1,331
-2,807
-5,703
-4,522
-32,362
-1,295
-84.8
-71.5
-27.6
-14.8
-10.2
-7.6
-7.6
-8.9
-7.5
-2.4
-3.3
-7.9
1
Share of Federal Taxes
Change (%
Points)
-0.2
-0.5
-0.4
-0.2
-0.1
0.0
0.0
-0.3
0.1
0.5
1.0
0.0
Under the
Proposal
0.0
0.2
1.5
2.6
3.4
10.0
10.1
25.0
17.5
8.0
21.6
100.0
Average Federal Tax Rate 5
Change (%
Points)
-4.5
-3.3
-2.6
-2.0
-1.6
-1.4
-1.5
-2.0
-2.0
-0.7
-1.0
-1.7
Under the
Proposal
0.8
1.3
6.8
11.3
14.3
16.6
18.2
20.7
24.1
26.2
29.3
20.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
Average
Income
Tax Units 3
Average
Federal
Average
After Tax
Average
Federal
Share of
Pre Tax
Number (thousands)
200-500
500-1,000
More than 1,000
All
5,636
989
519
150,241
3.8
0.7
0.4
100.0
291,886
695,069
3,199,967
75,289
75,924
186,351
970,745
16,327
215,962
508,717
2,229,222
58,962
26.0
26.8
30.3
21.7
14.5
6.1
14.7
100.0
Share of PostTax Income
Percent of
Total
1.1
3.9
5.1
5.0
5.1
12.7
11.4
13.7
5.7
13.1
Share of
Federal Taxes
Percent of
Total
0.2
0.7
1.9
2.8
3.5
10.0
10.1
17.4
7.5
20.6
100.0
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 increase in limitation on expens
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) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change 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 Cut
69.1
69.2
90.4
96.6
97.3
98.2
94.4
81.5
95.9
95.0
97.9
83.3
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.5
0.1
0.0
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
4.6
2.4
2.1
1.8
1.4
1.2
0.9
0.9
1.6
1.3
1.9
1.6
8.9
14.3
13.3
10.1
8.3
13.7
5.6
7.9
7.5
2.4
7.8
100.0
Average Federal Tax Change
Dollars
Percent
-240
-325
-457
-527
-519
-572
-587
-913
-3,506
-6,311
-38,681
-524
-53.0
-26.0
-12.6
-8.2
-5.8
-4.2
-2.8
-2.8
-4.5
-3.2
-3.6
-5.8
1
Share of Federal Taxes
Change (%
Points)
-0.5
-0.7
-0.4
-0.2
0.0
0.3
0.4
0.5
0.1
0.1
0.3
0.0
Under the
Proposal
0.5
2.5
5.7
7.0
8.3
19.2
12.0
17.3
9.9
4.5
13.0
100.0
Average Federal Tax Rate 5
Change (%
Points)
-4.2
-2.2
-1.8
-1.5
-1.1
-0.9
-0.7
-0.7
-1.2
-0.9
-1.2
-1.3
Under the
Proposal
3.7
6.2
12.6
16.7
18.4
20.8
23.0
23.9
25.3
27.6
32.8
20.1
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
Average
Income
Tax Units 3
Average
Federal
Average
After Tax
Average
Federal
Share of
Pre Tax
Number (thousands)
200-500
500-1,000
More than 1,000
All
730
130
69
64,958
1.1
0.2
0.1
100.0
295,280
694,203
3,156,727
42,053
78,268
197,542
1,074,887
8,992
217,012
496,661
2,081,839
33,060
26.5
28.5
34.1
21.4
7.9
3.3
7.9
100.0
Share of PostTax Income
Percent of
Total
3.1
9.6
9.9
8.9
9.3
18.5
10.2
7.4
3.0
6.7
Share of
Federal Taxes
Percent of
Total
1.0
3.2
6.1
7.2
8.3
18.9
11.6
9.8
4.4
12.7
100.0
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. 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 increase in limitation on expens
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) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change 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 Cut
64.3
76.7
85.6
91.7
95.1
98.0
99.3
99.9
99.8
95.5
98.5
94.6
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
4.9
4.7
3.9
3.1
2.7
1.9
2.1
3.0
2.8
0.8
1.4
2.4
0.4
2.1
3.2
2.9
2.9
7.3
10.6
37.0
21.1
2.6
9.6
100.0
Average Federal Tax Change
Dollars
Percent
-229
-719
-931
-1,014
-1,086
-1,032
-1,556
-3,201
-6,111
-4,270
-30,587
-2,298
-87.5
-155.6
-74.7
-35.5
-21.0
-11.0
-9.7
-10.3
-8.1
-2.3
-3.3
-8.1
1
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.3
-0.2
-0.2
-0.2
-0.2
-0.7
0.0
0.6
1.3
0.0
Under the
Proposal
0.0
-0.1
0.1
0.5
1.0
5.2
8.8
28.5
21.2
9.6
25.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
-4.7
-4.6
-3.7
-2.9
-2.4
-1.6
-1.7
-2.3
-2.1
-0.6
-1.0
-1.8
Under the
Proposal
0.7
-1.6
1.3
5.2
8.9
13.1
16.3
20.1
23.9
25.9
28.8
20.8
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
Average
Income
Tax Units 3
Average
Federal
Average
After Tax
Average
Federal
Share of
Pre Tax
Number (thousands)
200-500
500-1,000
More than 1,000
All
4,725
827
430
59,479
7.9
1.4
0.7
100.0
291,151
695,396
3,148,057
125,155
75,559
184,513
936,412
28,353
215,592
510,883
2,211,645
96,802
26.0
26.5
29.8
22.7
18.5
7.7
18.2
100.0
Share of PostTax Income
Percent of
Total
0.2
1.0
2.0
2.3
2.6
9.2
11.9
17.7
7.3
16.5
Share of
Federal Taxes
Percent of
Total
0.0
0.1
0.4
0.7
1.1
5.4
8.9
21.2
9.1
23.9
100.0
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. 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 increase in limitation on expens
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) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change 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 Cut
81.1
90.2
96.7
98.6
99.2
99.2
98.4
97.0
98.6
84.6
95.9
94.6
3
With Tax
Increase
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
Income 4
Share of Total
Federal Tax
Change
5.5
5.5
3.2
2.1
1.8
1.9
2.2
2.0
1.6
0.7
1.4
2.5
4.4
21.3
17.6
11.9
7.8
15.7
9.2
7.7
2.4
0.4
1.6
100.0
Average Federal Tax Change
Dollars
Percent
-375
-877
-798
-685
-688
-973
-1,502
-2,004
-3,652
-3,616
-30,419
-878
82.3
106.7
-132.9
-20.1
-10.6
-8.9
-8.1
-6.4
-4.9
-2.0
-3.3
-15.4
1
Share of Federal Taxes
Change (%
Points)
-1.0
-4.4
-2.8
-0.5
0.6
2.1
1.5
2.0
0.9
0.5
1.1
0.0
Under the
Proposal
-1.8
-7.5
-0.8
8.6
11.9
29.3
19.0
20.6
8.4
3.3
8.9
100.0
Average Federal Tax Rate 5
Change (%
Points)
-5.8
-5.8
-3.1
-1.9
-1.5
-1.6
-1.7
-1.5
-1.2
-0.5
-1.0
-2.2
Under the
Proposal
-13.0
-11.1
-0.8
7.7
12.6
16.2
19.5
22.6
23.8
26.2
29.4
12.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
Average
Income
Tax Units 3
Average
Federal
Average
After Tax
Average
Federal
Share of
Pre Tax
Number (thousands)
200-500
500-1,000
More than 1,000
All
132
21
11
23,292
0.6
0.1
0.1
100.0
298,070
683,864
3,070,023
40,351
74,443
182,444
932,848
5,702
223,627
501,421
2,137,175
34,650
25.0
26.7
30.4
14.1
4.2
1.5
3.6
100.0
Share of PostTax Income
Percent of
Total
2.1
9.9
13.9
14.1
11.3
20.8
10.7
3.7
1.3
2.9
Share of
Federal Taxes
Percent of
Total
-0.8
-3.1
2.0
9.1
11.3
27.2
17.5
7.4
2.8
7.8
100.0
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. 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 increase in limitation on expens
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) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Level, 2009
Detail Table - Tax Units with Children
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 Cut
83.0
96.9
99.1
99.5
99.6
99.6
99.6
99.5
99.7
92.9
97.6
98.2
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.0
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
6.3
6.5
4.4
3.1
2.7
2.2
2.5
3.6
3.0
0.6
1.2
2.8
1.1
5.9
6.2
4.8
4.0
8.7
10.6
34.8
16.7
1.4
5.8
100.0
Average Federal Tax Change
Dollars
Percent
-421
-1,089
-1,117
-1,028
-1,086
-1,189
-1,830
-3,863
-6,269
-3,095
-27,439
-2,104
61.9
77.7
1,264.5
-36.7
-18.8
-11.8
-10.9
-12.2
-8.2
-1.6
-2.8
-10.3
1
Share of Federal Taxes
Change (%
Points)
-0.2
-0.8
-0.7
-0.4
-0.2
-0.1
-0.1
-0.6
0.5
0.8
1.7
0.0
Under the
Proposal
-0.3
-1.6
-0.8
1.0
2.0
7.5
9.9
28.8
21.5
9.4
22.6
100.0
Average Federal Tax Rate 5
Change (%
Points)
-7.0
-7.0
-4.4
-2.9
-2.4
-1.9
-2.1
-2.8
-2.2
-0.5
-0.9
-2.2
Under the
Proposal
-18.4
-16.1
-4.8
5.0
10.3
14.1
16.8
20.1
24.4
27.0
29.6
19.3
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
Average
Income
Tax Units 3
Average
Federal
Average
After Tax
Average
Federal
Share of
Pre Tax
Number (thousands)
200-500
500-1,000
More than 1,000
All
2,690
442
212
48,094
5.6
0.9
0.4
100.0
288,713
693,043
3,179,388
95,281
76,663
189,988
969,934
20,453
212,050
503,055
2,209,454
74,827
26.6
27.4
30.5
21.5
17.0
6.7
14.7
100.0
Share of PostTax Income
Percent of
Total
0.5
2.6
4.0
4.3
4.2
10.9
11.7
15.9
6.2
13.0
Share of
Federal Taxes
Percent of
Total
-0.2
-0.8
-0.1
1.4
2.2
7.6
10.0
21.0
8.5
20.9
100.0
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. 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 increase in limitation on expens
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) 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.
29-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0061
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by Senate Finance
Distribution of Federal Tax Change by Cash Income Level, 2009
Detail Table - Elderly 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 Cut
35.4
42.0
69.7
82.2
85.9
93.6
96.5
98.4
99.5
99.2
99.6
72.3
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.2
0.1
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.8
0.6
0.8
0.8
0.8
1.0
1.3
1.8
2.6
1.6
2.0
1.6
0.5
2.0
3.0
2.1
2.1
8.1
8.8
23.8
23.3
6.8
19.6
100.0
Average Federal Tax Change
Dollars
Percent
-53
-80
-199
-263
-332
-536
-944
-2,027
-5,864
-8,357
-42,303
-951
-29.5
-20.2
-15.7
-12.5
-9.4
-7.4
-7.3
-7.8
-8.2
-4.4
-4.3
-6.7
1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.2
-0.3
0.3
0.8
0.0
Under the
Proposal
0.1
0.6
1.1
1.0
1.5
7.3
8.0
20.1
18.8
10.5
31.0
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.8
-0.5
-0.8
-0.8
-0.7
-0.9
-1.1
-1.5
-2.0
-1.2
-1.4
-1.3
Under the
Proposal
1.9
2.1
4.3
5.2
7.0
10.6
13.5
17.4
22.0
25.8
29.7
17.5
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
Cash Income Level
(thousands of 2008
Average
Income
Tax Units 3
Average
Federal
Average
After Tax
Average
Federal
Share of
Pre Tax
Number (thousands)
200-500
500-1,000
More than 1,000
All
1,082
221
126
28,639
3.8
0.8
0.4
100.0
298,445
696,175
3,134,426
75,721
71,508
188,052
974,445
14,178
226,937
508,123
2,159,981
61,543
24.0
27.0
31.1
18.7
14.9
7.1
18.2
100.0
Share of PostTax Income
Percent of
Total
1.0
5.6
5.4
4.0
4.1
13.1
10.9
13.9
6.4
15.5
Share of
Federal Taxes
Percent of
Total
0.1
0.7
1.3
1.1
1.5
7.3
8.1
19.1
10.2
30.3
100.0
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 increase in limitation on expens
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) 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.