13-Jun-08
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 T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
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
With Tax Cut
0.0
0.0
0.0
0.6
4.0
13.0
41.8
75.0
92.8
68.7
42.7
20.1
3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.3
1.6
0.5
0.1
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.1
0.2
0.7
1.7
3.4
1.7
0.8
1.2
1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
0.0
0.0
0.0
0.3
2.2
6.7
35.0
39.2
8.2
8.4
100.0
0
0
0
-2
-25
-106
-492
-1,854
-7,262
-8,667
-16,871
-695
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.6
-1.3
-2.5
-1.3
-0.5
-0.9
Under the
Proposal
5.0
4.7
9.4
13.4
15.9
17.9
19.3
21.6
23.6
25.7
29.8
20.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
13-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
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
0.0
0.0
0.0
0.6
4.0
13.0
41.8
75.0
92.8
68.7
42.7
20.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.3
1.6
0.5
0.1
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.1
0.2
0.7
1.7
3.4
1.7
0.8
1.2
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.3
2.2
6.7
35.0
39.2
8.2
8.4
100.0
Average Federal Tax Change
Dollars
0
0
0
-2
-25
-106
-492
-1,854
-7,262
-8,667
-16,871
-695
Percent
0.0
0.0
0.0
0.0
-0.3
-0.9
-2.8
-5.9
-9.5
-4.6
-1.7
-4.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.1
0.4
0.2
-0.4
-1.0
0.0
0.5
0.0
Under the
Proposal
0.2
0.7
2.0
2.9
3.6
10.4
10.2
24.9
16.5
7.5
21.0
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.6
-1.3
-2.5
-1.3
-0.5
-0.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
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
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)
285
706
2,377
4,756
7,334
11,391
17,618
31,669
76,264
187,025
971,657
16,404
Average After4
Tax Income
(Dollars)
5,419
14,475
22,937
30,798
38,504
51,648
71,171
106,485
215,621
508,044
2,228,310
58,885
Average
Federal Tax
5
Rate
5.0
4.7
9.4
13.4
16.0
18.1
19.8
22.9
26.1
26.9
30.4
21.8
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
20.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
Under the
Proposal
5.0
4.7
9.4
13.4
15.9
17.9
19.3
21.6
23.6
25.7
29.8
20.9
13-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Single 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
0.0
0.0
0.0
0.0
0.2
2.1
6.3
22.7
72.7
55.2
48.0
2.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.8
0.3
0.1
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.5
1.9
1.3
0.8
0.3
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.1
3.3
4.5
20.0
43.8
12.3
16.1
100.0
Average Federal Tax Change
Dollars
0
0
0
0
-1
-28
-96
-474
-4,212
-6,644
-16,430
-108
Percent
0.0
0.0
0.0
0.0
0.0
-0.2
-0.5
-1.4
-5.4
-3.4
-1.5
-1.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.1
0.1
0.2
0.1
0.0
-0.4
-0.1
0.0
0.0
Under the
Proposal
0.9
3.2
6.2
7.3
8.4
19.1
11.8
16.7
9.4
4.3
12.6
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.4
-1.4
-1.0
-0.5
-0.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
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
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)
431
1,250
3,646
6,482
8,989
13,582
20,941
33,139
78,502
197,856
1,075,267
9,021
Average After4
Tax Income
(Dollars)
5,274
13,767
21,597
29,084
36,807
48,567
67,033
101,280
216,779
496,347
2,081,460
33,031
Average
Federal Tax
5
Rate
7.6
8.3
14.4
18.2
19.6
21.9
23.8
24.7
26.6
28.5
34.1
21.5
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
0.9
3.2
6.2
7.2
8.3
18.9
11.7
16.7
9.8
4.4
12.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
Under the
Proposal
7.6
8.3
14.4
18.2
19.6
21.8
23.7
24.3
25.2
27.5
33.5
21.2
13-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Married Tax Units Filing Jointly
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
0.0
0.0
0.0
0.0
0.0
9.0
48.4
84.1
95.9
71.2
41.8
40.4
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.2
1.8
0.6
0.1
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.1
0.7
1.9
3.6
1.8
0.8
1.6
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.0
0.5
5.6
36.9
40.7
8.3
7.9
100.0
Average Federal Tax Change
Dollars
Percent
0
0
0
0
0
-49
-540
-2,085
-7,711
-8,977
-16,486
-1,504
0.0
0.0
0.0
0.0
0.0
-0.5
-3.3
-6.7
-10.2
-4.9
-1.8
-5.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.1
0.3
0.2
-0.4
-1.1
0.0
0.9
0.0
Under the
Proposal
0.0
0.1
0.4
0.7
1.2
5.7
9.1
28.8
20.1
9.1
24.6
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.6
-1.5
-2.7
-1.3
-0.5
-1.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
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
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)
251
457
1,265
2,898
5,239
9,515
16,225
31,355
75,915
185,240
937,424
28,501
Average After4
Tax Income
(Dollars)
4,653
15,252
24,092
32,743
40,727
54,689
73,067
107,917
215,236
510,156
2,210,633
96,654
Average
Federal Tax
5
Rate
5.1
2.9
5.0
8.1
11.4
14.8
18.2
22.5
26.1
26.6
29.8
22.8
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
29.3
21.2
9.0
23.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
Under the
Proposal
5.1
2.9
5.0
8.1
11.4
14.7
17.6
21.0
23.4
25.4
29.3
21.6
13-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Head of Household 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
0.0
0.0
0.0
1.1
11.4
40.5
75.1
86.2
93.3
62.8
41.6
14.6
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.1
0.0
1.6
0.4
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.2
0.7
1.4
2.2
3.4
1.5
0.6
0.7
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.2
2.8
20.2
22.4
30.4
18.4
2.9
2.7
100.0
Average Federal Tax Change
Dollars
Percent
0
0
0
-3
-67
-340
-989
-2,140
-7,669
-7,672
-13,676
-238
0.0
0.0
0.0
-0.1
-1.0
-3.1
-5.3
-6.8
-10.3
-4.2
-1.5
-4.1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
0.1
0.4
0.4
0.3
-0.2
-0.5
-0.5
0.0
0.2
0.0
Under the
Proposal
-0.9
-3.2
2.2
9.6
11.6
27.6
17.3
18.1
6.9
2.8
7.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
-0.2
-0.6
-1.1
-1.6
-2.6
-1.1
-0.5
-0.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2009 1
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
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)
-463
-822
615
3,445
6,493
11,075
18,644
31,547
74,801
183,190
933,517
5,735
Average After4
Tax Income
(Dollars)
6,874
16,080
24,789
31,956
39,319
50,858
68,933
98,972
223,269
500,675
2,136,506
34,616
Average
Federal Tax
5
Rate
-7.2
-5.4
2.4
9.7
14.2
17.9
21.3
24.2
25.1
26.8
30.4
14.2
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
2.1
9.2
11.3
27.3
17.5
18.6
7.4
2.8
7.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
Under the
Proposal
-7.2
-5.4
2.4
9.7
14.0
17.3
20.2
22.5
22.5
25.7
30.0
13.6
13-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
Distribution of Federal Tax Change by Cash Income Level, 2009
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
0.0
0.0
0.0
1.3
8.2
27.7
63.0
93.4
98.1
69.2
31.5
36.6
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
1.9
0.8
0.1
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.1
0.4
1.2
2.7
4.2
1.7
0.7
1.8
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.3
2.6
7.9
40.9
37.3
6.0
4.9
100.0
Average Federal Tax Change
Dollars
Percent
0
0
0
-5
-54
-220
-857
-2,853
-8,804
-8,547
-14,773
-1,319
0.0
0.0
0.3
-0.2
-0.9
-2.2
-5.1
-8.9
-11.4
-4.5
-1.5
-6.4
1
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
0.0
0.1
0.1
0.4
0.1
-0.8
-1.1
0.2
1.1
0.0
Under the
Proposal
-0.2
-0.8
-0.1
1.4
2.3
8.0
10.2
28.7
19.8
8.7
21.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.4
-1.0
-2.1
-3.1
-1.2
-0.5
-1.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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
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)
-681
-1,401
-75
2,837
5,837
10,180
16,957
32,022
77,053
190,836
971,175
20,579
Average After4
Tax Income
(Dollars)
6,662
16,879
25,474
32,712
40,013
53,041
72,166
106,993
211,660
502,207
2,208,213
74,702
Average
Federal Tax
5
Rate
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
-0.3
8.0
12.7
16.1
19.0
23.0
26.7
27.5
30.6
21.6
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
0.0
1.4
2.2
7.6
10.0
29.5
20.9
8.5
20.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
Under the
Proposal
-11.4
-9.1
-0.3
8.0
12.6
15.8
18.1
21.0
23.6
26.3
30.1
20.2
13-Jun-08
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T08-0123
Repeal Individual Alternative Minimum Tax (AMT)
Distribution of Federal Tax Change by Cash Income Level, 2009
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
0.0
0.0
0.0
0.0
1.0
3.0
27.5
54.5
83.7
79.1
63.2
13.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.2
0.1
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.8
2.4
2.1
1.0
0.8
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.1
0.6
4.0
19.6
40.5
16.3
18.9
100.0
Average Federal Tax Change
Dollars
0
0
0
0
-7
-21
-221
-875
-5,321
-10,509
-21,367
-497
Percent
0.0
0.0
0.0
0.0
-0.2
-0.3
-1.7
-3.4
-7.4
-5.6
-2.2
-3.5
1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.1
0.0
0.1
0.2
0.2
0.0
-0.8
-0.2
0.4
0.0
Under the
Proposal
0.1
0.7
1.3
1.2
1.6
7.6
8.2
20.5
18.3
10.0
30.6
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-0.6
-1.8
-1.5
-0.7
-0.7
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2009
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
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)
178
399
1,276
2,129
3,573
7,341
12,967
26,094
71,734
188,442
974,933
14,237
Average After4
Tax Income
(Dollars)
6,399
14,730
23,614
33,113
42,448
56,105
75,284
111,707
226,711
507,733
2,159,493
61,485
Average
Federal Tax
5
Rate
2.7
2.6
5.1
6.0
7.8
11.6
14.7
18.9
24.0
27.1
31.1
18.8
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
20.2
13.9
6.4
15.5
100.0
0.1
0.7
1.3
1.1
1.5
7.4
8.1
20.4
19.0
10.2
30.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-5).
Number of AMT Taxpayers (millions). Baseline:
30.0
Proposal:
0.0
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law, proposal repeals individual AMT effective 01/01/09.
(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.
Under the
Proposal
2.7
2.6
5.1
6.0
7.8
11.5
14.4
18.3
22.3
25.6
30.4
18.2