22-Jun-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0200
Repeal State and Local Tax Deduction and Repeal AMT Against Tax Cuts Extended Baseline
1
Distribution of Federal Tax Change by Cash Income Class for Joint Tax Units, 2011
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
0.4
18.0
55.0
69.1
89.7
34.5
22.6
35.0
0.0
0.2
2.5
7.2
14.8
31.7
38.3
29.1
9.1
61.6
72.3
21.4
Percent
Change in
After-Tax
Income4
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.7
0.9
1.9
-0.4
-1.4
0.5
Share of Total
Federal Tax
Change
0.0
0.0
-0.1
-0.3
-0.7
-1.1
17.2
58.5
73.3
-6.0
-40.9
100.0
Average Federal Tax Change
Dollars
0
0
5
17
47
31
-520
-1,083
-4,453
2,339
31,209
-450
Percent
-0.1
0.0
0.5
0.6
0.9
0.3
-2.8
-3.0
-5.2
1.2
3.2
-1.6
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
-0.1
-0.5
-0.8
0.2
1.0
0.0
Under the
Proposal
0.0
0.1
0.4
0.8
1.3
6.3
9.7
30.3
21.4
8.3
21.3
100.0
Average Federal Tax
Rate5
Change (% Under the
Points)
Proposal
0.0
0.0
0.0
0.0
0.1
0.0
-0.5
-0.7
-1.4
0.3
1.0
-0.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Class, 2006
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
2,639
4,485
5,955
5,054
4,210
10,008
9,348
15,286
4,661
726
371
62,978
4.2
7.1
9.5
8.0
6.7
15.9
14.8
24.3
7.4
1.2
0.6
100.0
Average
Income
(Dollars)
4,620
17,304
27,889
38,856
50,042
69,903
97,065
151,521
316,262
753,511
3,248,742
123,574
Average
Federal Tax
Burden
(Dollars)
278
336
1,070
2,740
5,441
11,103
18,740
35,896
85,048
198,628
975,288
28,352
Average AfterTax Income4
(Dollars)
4,342
16,968
26,819
36,115
44,601
58,801
78,326
115,626
231,213
554,883
2,273,453
95,223
Average
Federal Tax
Rate5
Share of PreTax Income
Percent of
Total
6.0
1.9
3.8
7.1
10.9
15.9
19.3
23.7
26.9
26.4
30.0
22.9
0.2
1.0
2.1
2.5
2.7
9.0
11.7
29.8
18.9
7.0
15.5
100.0
Share of
Share of PostFederal Taxes
Tax Income
Percent of
Percent of
Total
Total
0.2
1.3
2.7
3.0
3.1
9.8
12.2
29.5
18.0
6.7
14.1
100.0
0.0
0.1
0.4
0.8
1.3
6.2
9.8
30.7
22.2
8.1
20.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
Number of married AMT Taxpayers (millions). Baseline:
27.1
Proposal:
0.0
(1) Calendar year. Baseline is current law plus extension of all provisions of the 2001-2006 tax cuts due to sunset after 2010. Proposal repeals the individual AMT and the state and local tax
deduction. Taxation of state tax refunds is unaffected. 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.
6.0
1.9
3.9
7.1
11.0
15.9
18.8
23.0
25.5
26.7
31.0
22.6