3-Feb-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 T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009
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
70.2
75.0
90.8
95.7
96.9
98.3
99.0
97.9
99.3
94.8
98.3
89.9
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
4
Income
6.4
4.0
2.9
2.2
1.9
1.6
1.9
2.6
2.6
0.8
1.3
2.2
1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
3.1
7.2
6.7
5.1
4.4
9.3
9.5
28.3
16.3
2.1
7.9
100.0
-347
-582
-670
-688
-724
-835
-1,319
-2,797
-5,647
-4,201
-29,684
-1,298
Average Federal Tax Rate
Change (%
Points)
-6.1
-3.8
-2.7
-1.9
-1.6
-1.3
-1.5
-2.0
-1.9
-0.6
-0.9
-1.7
5
Under the
Proposal
-0.8
0.8
6.7
11.4
14.3
16.6
18.2
20.8
24.1
26.2
29.4
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. For more discussion of the
proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
Number of AMT Taxpayers (millions). Baseline: 30.339
Proposal: 4.636
(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-5-09.pdf. Provision
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 $0. 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 the credit is allowable against the
AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with
exception for TARP recipients. Plus the extension of the AMT patch for 2009 for which exemptions are increased to $46,700 ($70,950 for joint filers) and personal
credits are made allowable against AMT liability.
(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.
3-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail 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
With Tax
Increase
70.2
75.0
90.8
95.7
96.9
98.3
99.0
97.9
99.3
94.8
98.3
89.9
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
4
Income
6.4
4.0
2.9
2.2
1.9
1.6
1.9
2.6
2.6
0.8
1.3
2.2
Share of Total
Federal Tax
Change
3.1
7.2
6.7
5.1
4.4
9.3
9.5
28.3
16.3
2.1
7.9
100.0
Average Federal Tax Change
Dollars
Percent
-347
-582
-670
-688
-724
-835
-1,319
-2,797
-5,647
-4,201
-29,684
-1,298
-114.6
-82.3
-28.4
-14.6
-9.9
-7.4
-7.5
-8.9
-7.4
-2.3
-3.1
-8.0
Share of Federal Taxes
Change (%
Points)
-0.3
-0.6
-0.4
-0.2
-0.1
0.1
0.1
-0.3
0.1
0.5
1.1
0.0
Under the
Proposal
0.0
0.1
1.5
2.6
3.4
10.0
10.1
25.0
17.5
8.0
21.6
100.0
Average Federal Tax Rate
Change (%
Points)
-6.1
-3.8
-2.7
-1.9
-1.6
-1.3
-1.5
-2.0
-1.9
-0.6
-0.9
-1.7
5
Under the
Proposal
-0.8
0.8
6.7
11.4
14.3
16.6
18.2
20.8
24.1
26.2
29.4
20.0
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 After4
Tax Income
(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: 30.339
Proposal: 4.636
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. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at
http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
(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-5-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of ear
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 $0. 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 the credit is allowable against the AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with exception for TARP recipients. Plus the extension of the AMT
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability.
(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.
3-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
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
69.0
69.0
90.4
96.5
97.1
98.2
98.3
86.8
96.1
94.9
97.9
83.6
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
5.2
2.5
2.1
1.7
1.4
1.1
0.9
0.9
1.5
1.2
1.7
1.6
Share of Total
Federal Tax
Change
10.2
15.0
13.1
9.8
8.0
13.2
5.9
7.8
7.2
2.2
7.2
100.0
Average Federal Tax Change
Dollars
Percent
-275
-340
-446
-505
-499
-546
-608
-885
-3,340
-5,798
-35,463
-519
-60.7
-27.2
-12.3
-7.8
-5.6
-4.0
-2.9
-2.7
-4.3
-2.9
-3.3
-5.8
Share of Federal Taxes
Change (%
Points)
-0.6
-0.7
-0.4
-0.2
0.0
0.4
0.4
0.6
0.2
0.1
0.3
0.0
Under the
Proposal
0.4
2.5
5.7
7.1
8.3
19.2
12.0
17.3
9.9
4.5
13.0
100.0
Average Federal Tax Rate5
Change (%
Points)
-4.8
-2.3
-1.8
-1.4
-1.1
-0.9
-0.7
-0.7
-1.1
-0.8
-1.1
-1.2
Under the
Proposal
3.1
6.1
12.6
16.7
18.5
20.9
23.0
23.9
25.4
27.6
32.9
20.2
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at
http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
(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-5-09.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 $0. 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 the credit is allowable against the AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with exception for TARP recipients. Plus the extension of the AMT patch for 2009 for which e
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability.
(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.
3-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
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
64.0
76.7
85.6
91.5
94.9
98.0
99.3
99.9
99.8
95.4
98.4
94.5
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
6.5
5.3
4.0
3.1
2.6
1.8
2.1
3.0
2.8
0.8
1.3
2.4
Share of Total
Federal Tax
Change
0.5
2.4
3.4
3.0
2.9
7.2
10.5
37.4
21.2
2.4
8.9
100.0
Average Federal Tax Change
Dollars
Percent
-303
-812
-974
-1,011
-1,069
-1,005
-1,525
-3,192
-6,075
-3,981
-28,061
-2,272
-115.7
-175.7
-78.1
-35.4
-20.7
-10.7
-9.5
-10.3
-8.0
-2.2
-3.0
-8.0
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.3
-0.2
-0.2
-0.2
-0.1
-0.7
0.0
0.6
1.3
0.0
Under the
Proposal
0.0
-0.1
0.1
0.5
1.0
5.3
8.8
28.5
21.2
9.6
25.2
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.2
-5.2
-3.8
-2.8
-2.3
-1.6
-1.7
-2.3
-2.1
-0.6
-0.9
-1.8
Under the
Proposal
-0.8
-2.2
1.1
5.2
8.9
13.1
16.3
20.1
23.9
26.0
28.9
20.8
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
2,093
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at
http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
(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-5-09.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 $0. 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 the credit is allowable against the AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with exception for TARP recipients. Plus the extension of the AMT patch for 2009 for which e
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability.
(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.
3-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
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
81.1
90.2
96.6
98.6
98.9
99.1
99.1
98.4
98.6
83.9
96.3
94.7
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
11.2
7.0
3.5
2.1
1.7
1.9
2.2
2.0
1.6
0.7
1.3
2.8
Share of Total
Federal Tax
Change
8.1
24.6
16.9
10.6
6.9
13.8
8.4
6.9
2.1
0.3
1.4
100.0
Average Federal Tax Change
Dollars
Percent
-772
-1,133
-856
-680
-680
-961
-1,539
-2,017
-3,545
-3,336
-27,887
-982
169.5
137.8
-142.6
-19.9
-10.5
-8.8
-8.3
-6.4
-4.8
-1.8
-3.0
-17.2
Share of Federal Taxes
Change (%
Points)
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-2.7
-8.8
-1.1
8.9
12.2
30.0
19.4
21.1
8.5
3.4
9.1
100.0
-12.0
-7.4
-3.4
-1.9
-1.5
-1.6
-1.8
-1.6
-1.2
-0.5
-0.9
-2.4
-19.2
-12.8
-1.0
7.7
12.6
16.2
19.4
22.6
23.8
26.2
29.5
11.7
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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
-1.9
-5.8
-3.1
-0.3
0.9
2.8
1.9
2.4
1.1
0.5
1.3
0.0
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
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. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at
http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
(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-5-09.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 $0. 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 the credit is allowable against the AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with exception for TARP recipients. Plus the extension of the AMT patch for 2009 for which e
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability.
(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.
3-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Tax Units with Children
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
With Tax
Increase
83.0
96.9
99.0
99.5
99.5
99.6
99.8
99.8
99.7
92.7
97.6
98.2
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
4
Income
12.8
8.3
4.7
3.1
2.7
2.2
2.5
3.6
3.0
0.6
1.1
2.9
Share of Total
Federal Tax
Change
2.2
7.4
6.5
4.7
3.9
8.3
10.2
34.0
16.2
1.2
5.1
100.0
Average Federal Tax Change
Dollars
Percent
-853
-1,396
-1,203
-1,026
-1,075
-1,167
-1,816
-3,867
-6,259
-2,886
-25,156
-2,155
125.4
99.6
1,361.1
-36.6
-18.6
-11.6
-10.8
-12.2
-8.2
-1.5
-2.6
-10.5
Share of Federal Taxes
Change (%
Points)
-0.3
-1.0
-0.8
-0.4
-0.2
-0.1
0.0
-0.5
0.6
0.9
1.9
0.0
Average Federal Tax Rate
5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.5
-1.8
-0.8
1.0
2.0
7.5
9.9
28.9
21.5
9.4
22.8
100.0
-14.3
-9.0
-4.7
-2.9
-2.3
-1.9
-2.0
-2.8
-2.2
-0.4
-0.8
-2.3
-25.6
-18.1
-5.1
5.0
10.3
14.1
16.8
20.1
24.4
27.0
29.7
19.2
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 After4
Tax Income
(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. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at
http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
(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-5-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of ear
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 $0. 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 the credit is allowable against the AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with exception for TARP recipients. Plus the extension of the AMT
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability.
(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.
3-Feb-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0076
"The American Recovery and Reinvestment Tax Act of 2009"
As Reported by House Ways and Means Plus 2009 AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Elderly Tax Units
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
With Tax
Increase
34.9
41.9
69.7
81.6
85.3
93.5
96.7
98.4
99.5
99.2
99.6
72.1
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
4
Income
0.9
0.6
0.8
0.8
0.7
0.9
1.2
1.8
2.5
1.5
1.8
1.5
Share of Total
Federal Tax
Change
0.6
2.1
3.0
2.1
2.1
8.0
8.9
24.1
23.6
6.6
18.8
100.0
Average Federal Tax Change
Dollars
Percent
-59
-80
-194
-256
-316
-511
-910
-1,970
-5,683
-7,745
-38,806
-910
-32.6
-20.2
-15.4
-12.2
-8.9
-7.1
-7.1
-7.6
-8.0
-4.1
-4.0
-6.4
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.3
-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
Change (%
Points)
-0.9
-0.5
-0.8
-0.7
-0.7
-0.8
-1.0
-1.4
-1.9
-1.1
-1.2
-1.2
5
Under the
Proposal
1.9
2.1
4.3
5.3
7.0
10.6
13.5
17.4
22.1
25.9
29.9
17.5
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 After4
Tax Income
(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. For more discussion of the proposals, see the TPC's Tax Stimulus Report Card: Ways and Means bill, available at
http://www.taxpolicycenter.org/publications/url.cfm?ID=411827.
(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-5-09.pdf. Provisions include the Making Work Pay Credit equal to 6.2% of ear
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 $0. 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 the credit is allowable against the AMT. Forty percent of the credit is made refundable. 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 with 10 percent cutback for 2008 and 2009 NOLs with exception for TARP recipients. Plus the extension of the AMT
increased to $46,700 ($70,950 for joint filers) and personal credits are made allowable against AMT liability.
(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.