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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 Summary Table Cash Income Level (thousands of 2008 dollars) 2 Less than 10 10-20 20-30 30-40 40-50 50-75 75-100 100-200 200-500 500-1,000 More than 1,000 All Percent of Tax Units With Tax Cut 5.4 16.2 11.2 3.4 1.1 0.3 0.1 0.0 0.0 0.0 0.0 5.2 3 With Tax Increase 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Percent Change in After-Tax 4 Income 0.3 0.8 0.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Share of Total Federal Tax Change 5.3 54.9 30.8 6.1 1.6 0.7 0.2 0.1 0.0 0.0 0.0 100.0 Average Federal Tax Change ($) -15 -110 -76 -20 -6 -2 -1 0 0 0 0 -32 Average Federal Tax Rate5 Change (% Points) -0.3 -0.7 -0.3 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 5.1 3.9 9.0 13.2 15.9 17.9 19.7 22.8 26.0 26.8 30.3 21.6 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 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 3 With Tax Cut With Tax Increase 5.4 16.2 11.2 3.4 1.1 0.3 0.1 0.0 0.0 0.0 0.0 5.2 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 0.3 0.8 0.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Share of Total Federal Tax Change 5.3 54.9 30.8 6.1 1.6 0.7 0.2 0.1 0.0 0.0 0.0 100.0 Average Federal Tax Change Dollars -15 -110 -76 -20 -6 -2 -1 0 0 0 0 -32 Percent -4.8 -15.5 -3.2 -0.4 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 Share of Federal Taxes Change (% Points) 0.0 -0.1 -0.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 Under the Proposal 0.2 0.6 1.8 2.8 3.5 10.0 10.1 25.3 17.5 7.5 20.6 100.0 Average Federal Tax Rate5 Change (% Points) -0.3 -0.7 -0.3 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 5.1 3.9 9.0 13.2 15.9 17.9 19.7 22.8 26.0 26.8 30.3 21.6 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009 1 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 Tax Units 3 Number (thousands) 17,204 24,101 19,493 14,384 11,749 21,662 14,107 19,712 5,636 989 519 150,241 Percent of Total 11.5 16.0 13.0 9.6 7.8 14.4 9.4 13.1 3.8 0.7 0.4 100.0 Average Income (Dollars) 5,704 15,181 25,314 35,555 45,838 63,039 88,790 138,154 291,886 695,069 3,199,967 75,289 Average Federal Tax Burden (Dollars) 303 707 2,361 4,726 7,290 11,304 17,494 31,466 75,924 186,351 970,745 16,327 Average AfterTax Income 4 (Dollars) 5,401 14,474 22,953 30,828 38,547 51,734 71,296 106,688 215,962 508,717 2,229,222 58,962 Average Federal Tax Rate 5 5.3 4.7 9.3 13.3 15.9 17.9 19.7 22.8 26.0 26.8 30.3 21.7 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 0.9 3.2 4.4 4.5 4.8 12.1 11.1 24.1 14.5 6.1 14.7 100.0 1.1 3.9 5.1 5.0 5.1 12.7 11.4 23.7 13.7 5.7 13.1 100.0 0.2 0.7 1.9 2.8 3.5 10.0 10.1 25.3 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: 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 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 3 With Tax Cut With Tax Increase 1.4 3.4 1.3 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 1.3 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 0.1 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 10.3 69.8 17.0 2.5 0.2 0.0 0.0 0.0 0.0 0.0 0.0 100.0 Average Federal Tax Change Dollars -4 -21 -8 -2 0 0 0 0 0 0 0 -7 Percent -0.8 -1.6 -0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.1 Share of Federal Taxes Change (% Points) 0.0 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 1.0 3.1 6.1 7.2 8.3 18.9 11.7 16.7 9.8 4.4 12.7 100.0 Average Federal Tax Rate 5 Change (% Points) -0.1 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 7.9 8.2 14.4 18.2 19.6 21.7 23.7 24.6 26.5 28.5 34.1 21.4 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009 1 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 Tax Units 3 Number (thousands) Percent of Total 12,556 14,909 9,879 6,530 5,421 8,162 3,264 2,958 730 130 69 64,958 19.3 23.0 15.2 10.1 8.4 12.6 5.0 4.6 1.1 0.2 0.1 100.0 Average Income (Dollars) 5,704 15,017 25,243 35,566 45,797 62,150 87,974 134,418 295,280 694,203 3,156,727 42,053 Average Federal Tax Burden (Dollars) 452 1,251 3,629 6,456 8,954 13,504 20,826 32,997 78,268 197,542 1,074,887 8,992 Average AfterTax Income 4 (Dollars) 5,252 13,766 21,614 29,110 36,843 48,646 67,147 101,421 217,012 496,661 2,081,839 33,060 Average Federal Tax Rate 5 7.9 8.3 14.4 18.2 19.6 21.7 23.7 24.6 26.5 28.5 34.1 21.4 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 2.6 8.2 9.1 8.5 9.1 18.6 10.5 14.6 7.9 3.3 7.9 100.0 3.1 9.6 9.9 8.9 9.3 18.5 10.2 14.0 7.4 3.0 6.7 100.0 1.0 3.2 6.1 7.2 8.3 18.9 11.6 16.7 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 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 3 With Tax Cut With Tax Increase 4.8 17.9 14.6 5.6 2.2 0.5 0.1 0.0 0.0 0.0 0.0 3.2 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 0.3 0.9 0.5 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 2.5 40.0 38.6 11.4 3.7 1.8 0.5 0.3 0.0 0.0 0.0 100.0 Average Federal Tax Change Dollars -16 -137 -109 -39 -14 -2 -1 0 0 0 0 -23 Percent -6.1 -29.5 -8.7 -1.4 -0.3 0.0 0.0 0.0 0.0 0.0 0.0 -0.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.0 0.1 0.3 0.7 1.1 5.4 8.9 29.2 21.2 9.1 23.9 100.0 Average Federal Tax Rate 5 Change (% Points) -0.3 -0.9 -0.4 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 5.0 2.1 4.5 7.9 11.2 14.7 18.0 22.4 26.0 26.5 29.8 22.6 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009 1 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 Tax Units 3 Number (thousands) Percent of Total 2,093 3,937 4,757 3,946 3,659 9,688 9,341 15,817 4,725 827 430 59,479 3.5 6.6 8.0 6.6 6.2 16.3 15.7 26.6 7.9 1.4 0.7 100.0 Average Income (Dollars) 4,904 15,709 25,357 35,641 45,966 64,204 89,292 139,272 291,151 695,396 3,148,057 125,155 Average Federal Tax Burden (Dollars) 262 462 1,248 2,859 5,177 9,420 16,090 31,134 75,559 184,513 936,412 28,353 Average AfterTax Income 4 (Dollars) 4,642 15,247 24,109 32,782 40,790 54,784 73,202 108,138 215,592 510,883 2,211,645 96,802 Average Federal Tax Rate 5 5.3 2.9 4.9 8.0 11.3 14.7 18.0 22.4 26.0 26.5 29.8 22.7 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 0.1 0.8 1.6 1.9 2.3 8.4 11.2 29.6 18.5 7.7 18.2 100.0 0.2 1.0 2.0 2.3 2.6 9.2 11.9 29.7 17.7 7.3 16.5 100.0 0.0 0.1 0.4 0.7 1.1 5.4 8.9 29.2 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 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 3 With Tax Cut With Tax Increase 26.9 54.2 30.0 6.9 1.9 0.7 0.1 0.2 0.0 0.0 0.0 21.5 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 1.1 2.2 0.8 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 Share of Total Federal Tax Change 5.8 59.4 29.3 4.2 0.8 0.4 0.0 0.0 0.0 0.0 0.0 100.0 Average Federal Tax Change Dollars -72 -360 -196 -36 -10 -3 -1 -2 0 0 0 -129 Percent 15.8 43.9 -32.6 -1.1 -0.2 0.0 0.0 0.0 0.0 0.0 0.0 -2.3 Share of Federal Taxes Change (% Points) -0.2 -1.5 -0.6 0.1 0.2 0.6 0.4 0.4 0.2 0.1 0.2 0.0 Under the Proposal -1.0 -4.5 1.4 9.3 11.5 27.8 17.9 19.1 7.6 2.9 7.9 100.0 Average Federal Tax Rate 5 Change (% Points) -1.1 -2.4 -0.8 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.3 Under the Proposal -8.2 -7.8 1.6 9.6 14.1 17.7 21.2 24.1 25.0 26.7 30.4 13.8 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009 1 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 Tax Units 3 Number (thousands) Percent of Total 2,406 4,961 4,512 3,554 2,315 3,290 1,254 786 132 21 11 23,292 10.3 21.3 19.4 15.3 9.9 14.1 5.4 3.4 0.6 0.1 0.1 100.0 Average Income (Dollars) 6,412 15,257 25,403 35,401 45,811 61,934 87,576 130,519 298,070 683,864 3,070,023 40,351 Average Federal Tax Burden (Dollars) -455 -822 600 3,417 6,460 10,986 18,549 31,459 74,443 182,444 932,848 5,702 Average AfterTax Income 4 (Dollars) 6,867 16,079 24,803 31,984 39,351 50,948 69,027 99,060 223,627 501,421 2,137,175 34,650 Average Federal Tax Rate 5 -7.1 -5.4 2.4 9.7 14.1 17.7 21.2 24.1 25.0 26.7 30.4 14.1 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 1.6 8.1 12.2 13.4 11.3 21.7 11.7 10.9 4.2 1.5 3.6 100.0 2.1 9.9 13.9 14.1 11.3 20.8 10.7 9.7 3.7 1.3 2.9 100.0 -0.8 -3.1 2.0 9.1 11.3 27.2 17.5 18.6 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 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 3 With Tax Cut With Tax Increase 28.4 63.6 37.2 9.9 3.3 0.9 0.2 0.1 0.0 0.0 0.0 14.7 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 1.2 2.6 1.0 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Share of Total Federal Tax Change 4.7 53.8 32.0 6.4 1.7 0.8 0.2 0.1 0.0 0.0 0.0 100.0 Average Federal Tax Change Dollars -78 -437 -254 -60 -20 -5 -1 -1 0 0 0 -93 Percent 11.4 31.1 288.0 -2.2 -0.3 0.0 0.0 0.0 0.0 0.0 0.0 -0.5 Share of Federal Taxes Change (% Points) 0.0 -0.3 -0.2 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.0 Under the Proposal -0.2 -1.0 -0.2 1.3 2.2 7.6 10.0 29.5 21.1 8.6 21.0 100.0 Average Federal Tax Rate5 Change (% Points) -1.3 -2.8 -1.0 -0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.1 Under the Proposal -12.7 -11.9 -1.4 7.7 12.6 16.0 18.9 22.9 26.6 27.4 30.5 21.4 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009 1 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 Tax Units 3 Number (thousands) Percent of Total 2,701 5,494 5,603 4,726 3,756 7,394 5,839 9,103 2,690 442 212 48,094 5.6 11.4 11.7 9.8 7.8 15.4 12.1 18.9 5.6 0.9 0.4 100.0 Average Income (Dollars) 5,981 15,478 25,399 35,550 45,850 63,220 89,123 139,015 288,713 693,043 3,179,388 95,281 Average Federal Tax Burden (Dollars) -680 -1,402 -88 2,801 5,790 10,090 16,800 31,765 76,663 189,988 969,934 20,453 Average AfterTax Income 4 (Dollars) 6,662 16,880 25,487 32,748 40,061 53,131 72,323 107,250 212,050 503,055 2,209,454 74,827 Average Federal Tax Rate 5 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total -11.4 -9.1 -0.4 7.9 12.6 16.0 18.9 22.9 26.6 27.4 30.5 21.5 0.4 1.9 3.1 3.7 3.8 10.2 11.4 27.6 17.0 6.7 14.7 100.0 0.5 2.6 4.0 4.3 4.2 10.9 11.7 27.1 15.9 6.2 13.0 100.0 -0.2 -0.8 -0.1 1.4 2.2 7.6 10.0 29.4 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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 T09-0065 "The American Recovery and Reinvestment Tax Act of 2009": Reduce Child Tax Credit Refundability Threshold to $6,000 As Reported by Senate Finance Distribution of Federal Tax Change by Cash Income Level, 2009 1 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 3 With Tax Cut With Tax Increase 0.5 0.4 0.6 0.2 0.4 0.1 0.0 0.0 0.0 0.0 0.0 0.3 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 11.9 36.2 33.5 4.9 7.9 5.1 0.0 0.5 0.0 0.0 0.0 100.0 Average Federal Tax Change Dollars -2 -2 -4 -1 -2 -1 0 0 0 0 0 -2 Percent -1.1 -0.6 -0.3 -0.1 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.1 0.7 1.3 1.1 1.5 7.3 8.1 20.4 19.1 10.2 30.3 100.0 Average Federal Tax Rate5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 2.7 2.6 5.1 6.0 7.7 11.4 14.6 18.8 24.0 27.0 31.1 18.7 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2009 1 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 Tax Units 3 Number (thousands) Percent of Total 2,765 6,689 4,053 2,142 1,714 4,095 2,542 3,191 1,082 221 126 28,639 9.7 23.4 14.2 7.5 6.0 14.3 8.9 11.1 3.8 0.8 0.4 100.0 Average Income (Dollars) 6,577 15,129 24,891 35,242 46,021 63,445 88,251 137,801 298,445 696,175 3,134,426 75,721 Average Federal Tax Burden (Dollars) 181 398 1,264 2,108 3,537 7,255 12,856 25,941 71,508 188,052 974,445 14,178 Average AfterTax Income 4 (Dollars) 6,396 14,731 23,627 33,134 42,483 56,190 75,395 111,860 226,937 508,123 2,159,981 61,543 Average Federal Tax Rate 5 2.8 2.6 5.1 6.0 7.7 11.4 14.6 18.8 24.0 27.0 31.1 18.7 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 0.8 4.7 4.7 3.5 3.6 12.0 10.3 20.3 14.9 7.1 18.2 100.0 1.0 5.6 5.4 4.0 4.1 13.1 10.9 20.3 13.9 6.4 15.5 100.0 0.1 0.7 1.3 1.1 1.5 7.3 8.1 20.4 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. The proposal reduces the child tax credit refundability threshold to $6,000. (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.