26-Jan-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 T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Summary Table
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
14.3
43.4
73.7
88.0
93.8
97.5
98.7
98.8
94.9
98.2
99.9
74.9
With Tax
Increase
0.0
1.3
2.4
2.4
1.4
0.6
0.3
0.2
0.1
0.0
0.0
1.0
Percent Change
in After-Tax
Income 4
0.1
0.6
1.6
2.4
2.8
3.2
3.4
3.2
1.8
1.5
1.6
2.5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
0.9
3.2
4.7
5.8
16.2
15.8
31.3
10.2
3.3
8.3
100.0
-6
-85
-359
-724
-1,095
-1,649
-2,469
-3,498
-3,995
-7,432
-35,011
-1,465
Average Federal Tax Rate 5
Change (%
Points)
-0.1
-0.6
-1.4
-2.0
-2.4
-2.6
-2.8
-2.5
-1.4
-1.1
-1.1
-2.0
Under the
Proposal
5.2
4.1
7.9
11.3
13.5
15.2
16.4
18.9
23.0
25.6
29.2
19.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Number of AMT Taxpayers (millions). Baseline: 4.4
Proposal: 8.9
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.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from
10 and 15 percent to 5 and 10 percent; exclude unemployment compensation from gross income; provide a $20,000 deduction against income from a small business;
provide a special allowance for certain property acquired during 2009; allow a temporary increase in the limitation on expensing of certain depreciable business assets;
and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the same
as in the House Ways and Means Committee proposal).
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table
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
Increase
With Tax Cut
14.3
43.4
73.7
88.0
93.8
97.5
98.7
98.8
94.9
98.2
99.9
74.9
0.0
1.3
2.4
2.4
1.4
0.6
0.3
0.2
0.1
0.0
0.0
1.0
Percent Change
in After-Tax
Income 4
0.1
0.6
1.6
2.4
2.8
3.2
3.4
3.2
1.8
1.5
1.6
2.5
Share of Total
Federal Tax
Change
0.0
0.9
3.2
4.7
5.8
16.2
15.8
31.3
10.2
3.3
8.3
100.0
Average Federal Tax Change
Dollars
Percent
-6
-85
-359
-724
-1,095
-1,649
-2,469
-3,498
-3,995
-7,432
-35,011
-1,465
-1.9
-12.1
-15.2
-15.3
-15.1
-14.7
-14.5
-11.8
-5.6
-4.0
-3.6
-9.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.2
-0.2
-0.6
-0.6
-0.7
0.7
0.5
1.3
0.0
Under the
Proposal
0.2
0.7
1.8
2.7
3.4
9.6
9.5
23.9
17.5
8.2
22.5
100.0
5
Average Federal Tax Rate
Change (%
Points)
-0.1
-0.6
-1.4
-2.0
-2.4
-2.6
-2.8
-2.5
-1.4
-1.1
-1.1
-2.0
Under the
Proposal
5.2
4.1
7.9
11.3
13.5
15.2
16.4
18.9
23.0
25.6
29.2
19.1
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
Number
(thousands)
17,204
24,101
19,493
14,384
11,749
21,662
14,107
19,712
5,636
989
519
150,241
3
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
4,724
7,265
11,200
17,014
29,643
71,161
185,568
970,488
15,841
Average AfterTax Income 4
(Dollars)
5,401
14,474
22,953
30,831
38,573
51,839
71,775
108,511
220,725
509,501
2,229,478
59,448
Average
Federal Tax
Rate 5
5.3
4.7
9.3
13.3
15.9
17.8
19.2
21.5
24.4
26.7
30.3
21.0
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
1.0
3.9
5.0
5.0
5.1
12.6
11.3
24.0
13.9
5.6
13.0
100.0
0.2
0.7
1.9
2.9
3.6
10.2
10.1
24.6
16.9
7.7
21.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Number of AMT Taxpayers (millions). Baseline: 4.4
Proposal: 8.9
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 2
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of 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
14.3
56.8
85.6
96.4
98.7
99.2
99.0
98.3
96.6
98.8
99.9
70.2
0.0
1.8
1.4
0.6
0.3
0.1
0.1
0.2
0.1
0.0
0.0
0.7
Percent Change
in After-Tax
Income 4
0.1
0.9
2.4
3.5
3.9
3.7
3.2
2.6
1.9
1.8
1.9
2.7
Share of Total
Federal Tax
Change
0.1
3.2
9.0
11.4
13.4
25.5
12.0
13.3
5.3
2.0
4.7
100.0
Average Federal Tax Change
Dollars
Percent
-5
-123
-523
-1,009
-1,429
-1,805
-2,119
-2,597
-4,224
-8,766
-39,573
-889
-1.2
-9.8
-14.4
-15.6
-16.0
-13.4
-10.2
-8.0
-5.5
-4.4
-3.7
-9.9
Share of Federal Taxes
Change (%
Points)
0.1
0.0
-0.3
-0.5
-0.6
-0.7
0.0
0.4
0.5
0.3
0.9
0.0
Under the
Proposal
1.1
3.2
5.9
6.8
7.8
18.2
11.6
17.0
10.1
4.7
13.6
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.1
-0.8
-2.1
-2.8
-3.1
-2.9
-2.4
-1.9
-1.4
-1.3
-1.3
-2.1
Under the
Proposal
7.8
7.5
12.3
15.3
16.4
18.8
21.2
22.3
24.5
27.2
32.8
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
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
8,953
13,476
20,735
32,597
76,604
197,318
1,074,820
8,947
Average AfterTax Income 4
(Dollars)
5,252
13,766
21,614
29,110
36,844
48,673
67,238
101,821
218,677
496,885
2,081,906
33,106
Average
Federal Tax
Rate 5
7.9
8.3
14.4
18.2
19.6
21.7
23.6
24.3
25.9
28.4
34.1
21.3
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
9.5
9.9
8.8
9.3
18.5
10.2
14.0
7.4
3.0
6.7
100.0
1.0
3.2
6.2
7.3
8.4
18.9
11.7
16.6
9.6
4.4
12.7
100.0
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.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of 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
22.4
26.0
58.9
77.1
85.9
96.6
99.1
99.4
94.9
98.1
99.9
85.2
0.0
0.3
3.0
4.2
3.5
1.1
0.3
0.2
0.1
0.0
0.0
1.0
Percent Change
in After-Tax
Income 4
0.3
0.1
0.5
1.1
1.6
2.8
3.6
3.4
1.8
1.4
1.5
2.5
Share of Total
Federal Tax
Change
0.0
0.1
0.4
1.0
1.7
10.4
17.4
41.5
13.1
4.2
10.1
100.0
Average Federal Tax Change
Dollars
Percent
-12
-21
-130
-368
-652
-1,541
-2,668
-3,747
-3,971
-7,223
-33,586
-2,404
-4.7
-4.6
-10.4
-12.9
-12.6
-16.5
-17.1
-12.9
-5.7
-3.9
-3.6
-8.8
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.5
-0.8
-1.3
0.7
0.5
1.4
0.0
Under the
Proposal
0.0
0.1
0.4
0.7
1.1
5.1
8.2
27.1
21.2
9.9
26.2
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.3
-0.1
-0.5
-1.0
-1.4
-2.4
-3.0
-2.7
-1.4
-1.0
-1.1
-1.9
Under the
Proposal
5.1
2.8
4.4
7.0
9.8
12.2
14.4
18.2
22.8
25.4
28.7
19.9
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
9,369
15,566
29,054
70,236
183,594
936,090
27,271
Average AfterTax Income 4
(Dollars)
4,642
15,247
24,109
32,782
40,790
54,835
73,726
110,218
220,915
511,802
2,211,966
97,884
Average
Federal Tax
Rate 5
5.3
2.9
4.9
8.0
11.3
14.6
17.4
20.9
24.1
26.4
29.7
21.8
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
2.2
2.6
9.1
11.8
29.9
17.9
7.3
16.3
100.0
0.0
0.1
0.4
0.7
1.2
5.6
9.0
28.3
20.5
9.4
24.8
100.0
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.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of 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
6.7
14.9
61.7
83.9
94.6
96.3
96.6
91.8
87.1
96.6
99.8
60.6
0.0
0.6
4.1
3.9
1.0
0.5
0.4
1.1
0.0
0.0
0.0
1.8
Percent Change
in After-Tax
Income 4
0.0
0.1
0.9
1.8
2.5
3.1
2.9
2.1
1.5
1.3
1.5
1.9
Share of Total
Federal Tax
Change
0.0
0.5
6.3
12.7
14.3
33.1
16.4
10.7
2.8
0.9
2.3
100.0
Average Federal Tax Change
Dollars
Percent
-2
-17
-220
-563
-972
-1,580
-2,056
-2,131
-3,347
-6,682
-32,742
-675
0.3
2.0
-36.7
-16.5
-15.2
-14.8
-11.7
-7.2
-4.7
-3.7
-3.5
-12.2
Share of Federal Taxes
Change (%
Points)
-0.1
-0.5
-0.6
-0.5
-0.4
-0.8
0.1
1.0
0.6
0.3
0.8
0.0
Under the
Proposal
-1.0
-3.7
1.5
9.0
11.1
26.5
17.2
19.2
8.0
3.2
8.8
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
-0.1
-0.9
-1.6
-2.1
-2.6
-2.4
-1.6
-1.1
-1.0
-1.1
-1.7
Under the
Proposal
-7.1
-5.5
1.5
8.1
11.8
14.7
17.7
21.1
23.0
25.7
29.3
12.0
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
3,414
6,393
10,661
17,561
29,606
71,799
182,161
932,778
5,518
Average AfterTax Income 4
(Dollars)
6,867
16,079
24,803
31,987
39,418
51,272
70,015
100,913
226,271
501,703
2,137,244
34,834
Average
Federal Tax
Rate 5
-7.1
-5.4
2.4
9.6
14.0
17.2
20.1
22.7
24.1
26.6
30.4
13.7
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
2.0
9.8
13.8
14.0
11.3
20.8
10.8
9.8
3.7
1.3
2.9
100.0
-0.9
-3.2
2.1
9.4
11.5
27.3
17.1
18.1
7.4
2.9
8.0
100.0
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.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of 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
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
Increase
With Tax Cut
5.0
12.0
55.8
82.4
91.2
95.6
98.3
98.4
92.4
97.3
99.9
75.3
0.0
0.6
3.5
4.2
2.5
1.2
0.5
0.3
0.2
0.0
0.0
1.4
Percent Change
in After-Tax
Income 4
0.0
0.1
0.8
1.6
2.0
2.7
3.2
3.1
1.5
1.3
1.4
2.2
Share of Total
Federal Tax
Change
0.0
0.1
1.3
3.0
3.8
13.3
17.1
38.6
11.0
3.5
8.2
100.0
Average Federal Tax Change
Dollars
Percent
-2
-13
-190
-507
-819
-1,451
-2,367
-3,416
-3,306
-6,346
-31,167
-1,676
0.4
0.9
214.4
-18.1
-14.3
-14.7
-14.8
-11.8
-4.7
-3.4
-3.2
-8.6
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.1
-0.2
-0.1
-0.5
-0.7
-1.0
0.9
0.5
1.3
0.0
Under the
Proposal
-0.2
-0.9
-0.2
1.3
2.2
7.3
9.3
27.2
21.2
9.5
23.3
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
-0.1
-0.8
-1.4
-1.8
-2.3
-2.7
-2.5
-1.2
-0.9
-1.0
-1.8
Under the
Proposal
-11.4
-9.1
-1.1
6.4
10.7
13.3
15.3
18.4
23.4
26.4
29.5
18.7
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
-89
2,796
5,735
9,872
15,985
28,971
70,840
189,245
969,821
19,454
Average AfterTax Income 4
(Dollars)
6,662
16,880
25,487
32,753
40,116
53,349
73,138
110,044
217,873
503,798
2,209,568
75,826
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
12.5
15.6
17.9
20.8
24.5
27.3
30.5
20.4
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
2.5
3.9
4.2
4.1
10.8
11.7
27.5
16.1
6.1
12.8
100.0
-0.2
-0.8
-0.1
1.4
2.3
7.8
10.0
28.2
20.4
9.0
22.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
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 2
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0047
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Level, 2009 1
Detail Table - Elderly 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
Increase
With Tax Cut
25.9
38.0
68.2
81.4
88.5
98.1
99.5
99.6
99.5
99.8
99.8
71.4
0.0
0.0
0.1
0.3
0.3
0.2
0.1
0.0
0.0
0.0
0.0
0.1
Percent Change
in After-Tax
Income 4
0.2
0.3
0.8
1.1
1.8
2.8
3.6
3.5
2.4
2.0
2.0
2.4
Share of Total
Federal Tax
Change
0.1
0.7
1.8
1.8
3.0
15.2
16.1
29.4
14.1
5.3
12.7
100.0
Average Federal Tax Change
Dollars
Percent
-11
-44
-188
-352
-753
-1,590
-2,715
-3,954
-5,570
-10,289
-43,195
-1,499
-6.2
-11.0
-14.8
-16.7
-21.3
-22.0
-21.5
-15.8
-8.2
-5.5
-4.4
-10.8
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.2
-0.9
-1.0
-1.1
0.5
0.6
2.2
0.0
Under the
Proposal
0.1
0.7
1.2
1.1
1.3
6.5
7.1
18.9
19.0
11.0
33.0
100.0
5
Average Federal Tax Rate
Change (%
Points)
-0.2
-0.3
-0.8
-1.0
-1.6
-2.5
-3.1
-2.9
-1.9
-1.5
-1.4
-2.0
Under the
Proposal
2.6
2.3
4.3
5.0
6.0
8.9
11.2
15.3
20.9
25.4
29.7
16.4
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
3,531
7,233
12,621
25,030
68,004
187,009
974,087
13,910
Average AfterTax Income 4
(Dollars)
6,396
14,731
23,627
33,134
42,490
56,212
75,630
112,771
230,441
509,166
2,160,339
61,811
Average
Federal Tax
Rate 5
2.8
2.6
5.1
6.0
7.7
11.4
14.3
18.2
22.8
26.9
31.1
18.4
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
13.0
10.9
20.3
14.1
6.4
15.4
100.0
0.1
0.7
1.3
1.1
1.5
7.4
8.1
20.1
18.5
10.4
30.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
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 2
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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.