27-Mar-09
http://www.taxpolicycenter.org
PRELIMINARY RESULTS
T09-0191
Income Subject to Tax and Effective Marginal Tax Rates
in the Regular Income Tax and the AMT Among AMT Taxpayers, Current Law 1
2009
Cash Income Class
(thousands of
2009$)2
Less than 30
30-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Regular Tax
AMT
Average
Adjustments and
Preferences4
0.0
69.4
80.8
93.2
94.4
62.0
7.6
7.5
58.3
100.0
30.7
19.3
6.8
5.6
38.0
92.4
92.5
41.7
1,193,238
268,339
58,296
43,361
36,829
37,570
60,390
246,376
50,906
Percent With More Income
Subject to Tax In3
Percent With a Higher Marginal
Tax Rate In5
Regular Tax
AMT
2.3
0.9
0.0
7.7
3.0
12.6
62.8
64.4
20.1
97.7
99.1
99.7
91.3
93.7
86.9
36.7
34.5
78.9
Average Effective Marginal
Tax Rate (percent)6
Before AMT
-5.5
0.6
16.3
24.0
24.3
30.2
31.6
28.2
29.1
After AMT
16.9
15.9
26.9
31.6
29.4
33.9
30.2
27.8
32.2
2010
Cash Income Class
(thousands of
2009$)2
Less than 30
30-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent With More Income
Subject to Tax In3
Regular Tax
AMT
Average
Adjustments and
Preferences4
63.4
90.4
97.7
98.9
97.9
53.8
12.4
10.5
89.1
36.6
9.6
2.3
1.1
2.1
46.2
87.6
89.5
10.9
230,384
17,575
18,289
18,783
20,770
29,715
56,296
219,385
23,629
Percent With a Higher Marginal
Tax Rate In5
Regular Tax
AMT
0.6
0.0
1.6
0.9
4.2
11.5
62.9
54.5
5.8
99.4
97.0
94.9
93.4
92.4
87.2
32.3
35.7
90.4
Average Effective Marginal
Tax Rate (percent)6
Before AMT
3.8
16.3
17.6
18.1
24.1
28.4
30.2
27.6
22.7
After AMT
22.6
25.8
24.2
25.2
28.0
32.8
28.6
27.6
27.6
2011
Cash Income Class
(thousands of
2009$)2
Percent With More Income
Subject to Tax In3
Regular Tax
AMT
Average
Adjustments and
Preferences4
Percent With a Higher Marginal
Tax Rate In5
Regular Tax
AMT
Average Effective Marginal
Tax Rate (percent)6
Before AMT After AMT
Less than 30
30-50
50-75
85.1
94.4
96.7
14.9
5.6
3.3
91,933
20,851
20,188
0.1
1.5
16.0
99.4
97.7
81.9
12.5
18.8
18.1
25.7
29.9
25.2
(4) Taxpayers are define
100-200
200-500
500-1,000
More than 1,000
All
98.1
94.9
45.7
13.3
12.3
85.9
1.9
5.1
54.3
86.7
87.7
14.1
22,085
26,882
35,188
67,167
312,170
28,540
31.5
71.7
44.0
75.4
69.8
47.5
67.3
27.9
55.8
24.5
29.1
51.7
20.6
28.3
33.3
32.6
30.9
25.7
26.2
27.2
32.9
29.6
28.7
27.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) AMT taxpayers include those with AMT liability from Form 6251, with lost credits, and with reduced deductions.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. Includes both filing and non-filing
units but excludes those that are dependents of other taxpayers. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Income subject to tax for the regular income tax is taxable income; for the AMT it is AMTI net of the AMT exemption.
(4) Amounts are in nominal dollars to facilitate comparison with AMT exemption amounts. For 2009, the AMT exemption is $70,950 for married
couples filing jointly and surviving spouses; $46,700 for unmarried individuals other than surviving spouses; and $33,125 for married individuals
filing separately. For 2010 and 2011, the exemption amounts are $45,000, $33,750, and $22,500.
(5) The marginal tax rate for each return is calculated by adding $1,000 to wages, recomputing income tax net of refundable credits, and dividing the
resulting change in tax liability by 1,000.
(6) Marginal tax rates represent a simple average across individuals.