19-Jun-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0173
Repeal State and Local Tax Deduction and Repeal AMT
1
Distribution of Federal Tax Change by Cash Income Class for Joint Tax Units, 2007
Cash Income Class
(thousands of 2006
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 Units3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.1
0.3
5.6
35.5
47.7
62.6
24.8
18.7
21.4
0.0
0.1
3.4
7.8
17.8
33.6
50.0
49.7
35.6
70.1
75.6
30.3
Percent
Change in
After-Tax
Income4
0.0
0.0
0.0
-0.1
-0.1
-0.2
0.0
0.2
0.7
-0.9
-1.3
-0.1
Share of Total
Federal Tax
Change
0.0
0.0
0.6
1.6
3.9
25.6
-0.2
-46.5
-122.7
56.5
181.8
100.0
Average Federal Tax Change
Dollars
0
0
5
16
46
115
-1
-167
-1,581
4,310
26,598
80
Percent
0.0
0.1
0.5
0.6
0.9
1.2
0.0
-0.5
-2.1
2.3
2.8
0.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.0
-0.3
-0.5
0.2
0.5
0.0
Under the
Proposal
0.0
0.1
0.4
0.9
1.5
7.4
10.6
28.9
19.3
8.2
22.4
100.0
Average Federal Tax
Rate5
Change (% Under the
Points)
Proposal
0.0
0.0
0.0
0.1
0.1
0.2
0.0
-0.1
-0.5
0.6
0.9
0.1
5.7
1.6
4.2
7.7
11.9
15.9
19.0
22.8
25.9
27.6
32.3
22.6
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Class, 2007
Cash Income Class
(thousands of 2006
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 Units3
Number
(thousands)
Percent of
Total
2,549
4,732
5,775
4,782
4,151
10,803
9,308
13,531
3,764
637
332
60,598
4.2
7.8
9.5
7.9
6.9
17.8
15.4
22.3
6.2
1.1
0.6
100.0
Average
Income
(Dollars)
4,458
15,746
25,389
35,589
45,862
63,800
88,534
138,102
292,539
690,232
3,083,140
107,494
Average
Federal Tax
Burden
(Dollars)
256
255
1,056
2,735
5,413
10,025
16,782
31,635
77,200
186,154
967,800
24,242
Average AfterTax Income4
(Dollars)
4,203
15,491
24,332
32,854
40,449
53,775
71,753
106,467
215,339
504,078
2,115,340
83,252
Average
Federal Tax
Rate5
Share of PreTax Income
Percent of
Total
5.7
1.6
4.2
7.7
11.8
15.7
19.0
22.9
26.4
27.0
31.4
22.6
0.2
1.1
2.3
2.6
2.9
10.6
12.7
28.7
16.9
6.8
15.7
100.0
Share of
Share of PostFederal Taxes
Tax Income
Percent of
Percent of
Total
Total
0.2
1.5
2.8
3.1
3.3
11.5
13.2
28.6
16.1
6.4
13.9
100.0
0.0
0.1
0.4
0.9
1.5
7.4
10.6
29.1
19.8
8.1
21.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
Number of married AMT Taxpayers (millions). Baseline:
19.2
Proposal:
0.0
(1) Calendar year. Baseline is current law. Proposal repeals the state and local tax deduction but retains taxation of state tax refunds deducted in 2006. Joint tax units include all tax units filing a
joint return and non-filing units who would file a joint return if they filed.
(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.