13-Mar-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 T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2012
Summary Table
Cash Income Level
(thousands of 2009
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
77.3
78.4
86.2
93.4
96.3
98.6
99.8
99.8
98.3
69.1
49.9
90.8
With Tax
Increase
0.0
0.2
0.2
0.1
0.1
0.0
0.0
0.0
1.7
30.8
50.1
0.5
Percent
Change in
After-Tax
Income 4
6.5
4.9
4.8
4.4
4.0
3.7
4.0
4.5
3.5
0.9
0.2
3.5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1.7
5.1
7.4
6.7
5.9
13.2
13.2
31.3
13.4
1.4
0.5
100.0
-354
-731
-1,117
-1,384
-1,551
-1,933
-2,871
-4,881
-7,550
-4,589
-3,171
-2,110
Average Federal Tax Rate5
Change (%
Points)
-6.2
-4.6
-4.3
-3.8
-3.3
-3.0
-3.1
-3.4
-2.5
-0.6
-0.1
-2.7
Under the
Proposal
-0.5
1.2
6.5
11.2
14.2
16.6
18.0
20.8
24.6
28.2
33.9
20.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 19.6
Proposal: 3.2
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion;
creates automatic 401(k)s and IRAs; and extends the American Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal
exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single); imposes a 20 percent rate on
capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions
reduce tax liability to 28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and
experimentation tax credit permanent; expanding net operating loss carryback, taxing carried interest as ordinary income, repealing LIFO, and implementing
international enforcement, reform deferral and other reform policies.
(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-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2012
Detail Table
Cash Income Level
(thousands of 2009
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
With Tax Cut
3
With Tax
Increase
77.3
78.4
86.2
93.4
96.3
98.6
99.8
99.8
98.3
69.1
49.9
90.8
0.0
0.2
0.2
0.1
0.1
0.0
0.0
0.0
1.7
30.8
50.1
0.5
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
6.5
4.9
4.8
4.4
4.0
3.7
4.0
4.5
3.5
0.9
0.2
3.5
1.7
5.1
7.4
6.7
5.9
13.2
13.2
31.3
13.4
1.4
0.5
100.0
Average Federal Tax Change
Dollars
Percent
-354
-731
-1,117
-1,384
-1,551
-1,933
-2,871
-4,881
-7,550
-4,589
-3,171
-2,110
-109.7
-79.8
-39.6
-25.3
-18.8
-15.2
-14.8
-14.1
-9.3
-2.2
-0.3
-11.6
Share of Federal Taxes
Change (%
Points)
-0.2
-0.6
-0.7
-0.5
-0.3
-0.4
-0.4
-0.7
0.5
0.8
2.5
0.0
Under the
Proposal
0.0
0.2
1.5
2.6
3.3
9.7
10.0
25.1
17.3
8.2
22.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
-6.2
-4.6
-4.3
-3.8
-3.3
-3.0
-3.1
-3.4
-2.5
-0.6
-0.1
-2.7
Under the
Proposal
-0.5
1.2
6.5
11.2
14.2
16.6
18.0
20.8
24.6
28.2
33.9
20.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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)
16,013
23,194
22,014
16,088
12,539
22,724
15,284
21,316
5,894
1,021
519
157,316
Percent of
Total
10.2
14.7
14.0
10.2
8.0
14.4
9.7
13.6
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,740
15,900
26,173
36,651
47,251
65,018
91,616
142,730
300,152
714,940
3,165,609
77,851
Average
Federal Tax
Burden
(Dollars)
323
916
2,822
5,473
8,240
12,701
19,374
34,519
81,296
206,488
1,075,111
18,131
Average AfterTax Income 4
(Dollars)
5,418
14,984
23,350
31,178
39,011
52,317
72,241
108,211
218,856
508,452
2,090,497
59,720
Average
Federal Tax
Rate 5
5.6
5.8
10.8
14.9
17.4
19.5
21.2
24.2
27.1
28.9
34.0
23.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.0
4.7
4.8
4.8
12.1
11.4
24.8
14.5
6.0
13.4
100.0
0.9
3.7
5.5
5.3
5.2
12.7
11.8
24.6
13.7
5.5
11.6
100.0
0.2
0.8
2.2
3.1
3.6
10.1
10.4
25.8
16.8
7.4
19.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 19.6
Proposal: 3.2
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28
percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried
interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
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
76.8
72.9
82.6
94.1
98.9
99.6
99.9
99.4
94.4
67.4
52.3
86.3
0.0
0.3
0.1
0.0
0.0
0.0
0.0
0.1
5.5
32.6
47.6
0.3
Percent Change
in After-Tax
Income 4
5.6
3.4
3.2
2.9
2.7
2.8
3.7
4.2
4.9
2.6
0.6
3.3
Share of Total
Federal Tax
Change
4.2
8.6
10.9
8.7
7.7
16.2
11.9
18.4
10.3
2.1
1.0
100.0
Average Federal Tax Change
Dollars
Percent
-290
-486
-717
-877
-1,027
-1,392
-2,481
-4,289
-10,400
-12,250
-10,859
-1,148
-55.3
-30.7
-19.4
-13.3
-10.6
-9.6
-10.8
-11.5
-11.6
-5.4
-1.0
-11.1
Share of Federal Taxes
Change (%
Points)
-0.4
-0.7
-0.6
-0.2
0.0
0.3
0.0
-0.1
-0.1
0.3
1.3
0.0
Under the
Proposal
0.4
2.4
5.7
7.1
8.1
19.1
12.3
17.7
9.8
4.6
12.8
100.0
Average Federal Tax Rate5
Change (%
Points)
-5.1
-3.1
-2.8
-2.4
-2.2
-2.2
-2.7
-3.1
-3.4
-1.7
-0.4
-2.5
Under the
Proposal
4.1
6.9
11.4
15.7
18.3
20.5
22.7
23.8
26.2
30.4
36.8
20.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
11,322
13,927
12,005
7,758
5,890
9,119
3,769
3,371
777
136
72
68,506
16.5
20.3
17.5
11.3
8.6
13.3
5.5
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,679
15,797
26,047
36,609
47,203
64,298
90,691
139,363
304,627
706,682
3,061,513
45,237
Average
Federal Tax
Burden
(Dollars)
524
1,581
3,692
6,612
9,670
14,569
23,034
37,396
90,065
226,820
1,138,389
10,354
Average AfterTax Income 4
(Dollars)
5,155
14,216
22,354
29,997
37,533
49,729
67,657
101,967
214,563
479,862
1,923,125
34,883
Average
Federal Tax
Rate 5
9.2
10.0
14.2
18.1
20.5
22.7
25.4
26.8
29.6
32.1
37.2
22.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.1
7.1
10.1
9.2
9.0
18.9
11.0
15.2
7.6
3.1
7.1
100.0
2.4
8.3
11.2
9.7
9.3
19.0
10.7
14.4
7.0
2.7
5.8
100.0
0.8
3.1
6.3
7.2
8.0
18.7
12.2
17.8
9.9
4.3
11.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing
carried interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
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
64.4
81.1
84.6
86.9
90.9
97.3
99.8
99.9
99.1
69.9
49.8
93.6
0.0
0.0
0.3
0.4
0.2
0.0
0.0
0.0
0.9
30.1
50.2
0.9
Percent Change
in After-Tax
Income 4
7.2
6.4
6.6
6.1
5.4
4.3
4.1
4.6
3.3
0.7
0.1
3.5
Share of Total
Federal Tax
Change
0.3
1.8
3.7
4.0
4.1
10.8
14.5
41.6
17.1
1.4
0.5
100.0
Average Federal Tax Change
Dollars
Percent
-336
-1,008
-1,615
-1,983
-2,211
-2,357
-3,038
-5,098
-7,214
-3,497
-2,464
-3,381
-124.3
-162.5
-81.8
-49.8
-35.6
-21.7
-17.1
-15.0
-9.0
-1.7
-0.2
-10.8
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.4
-0.4
-0.4
-0.7
-0.6
-1.4
0.4
0.9
2.7
0.0
Under the
Proposal
0.0
-0.1
0.1
0.5
0.9
4.7
8.5
28.5
20.9
9.9
25.9
100.0
Average Federal Tax Rate5
Change (%
Points)
-6.8
-6.2
-6.1
-5.4
-4.7
-3.6
-3.3
-3.6
-2.4
-0.5
-0.1
-2.6
Under the
Proposal
-1.3
-2.4
1.4
5.4
8.5
12.8
16.0
20.1
24.3
27.9
33.3
21.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,080
3,744
4,757
4,142
3,865
9,499
9,889
16,942
4,932
852
427
61,400
3.4
6.1
7.8
6.8
6.3
15.5
16.1
27.6
8.0
1.4
0.7
100.0
Average
Income
(Dollars)
4,968
16,339
26,344
36,758
47,359
66,123
92,185
143,802
299,285
716,602
3,123,239
128,766
Average
Federal Tax
Burden
(Dollars)
271
620
1,974
3,983
6,216
10,841
17,786
33,958
79,894
203,433
1,043,698
31,308
Average AfterTax Income 4
(Dollars)
4,698
15,719
24,370
32,776
41,143
55,282
74,399
109,844
219,391
513,169
2,079,541
97,458
Average
Federal Tax
Rate 5
5.5
3.8
7.5
10.8
13.1
16.4
19.3
23.6
26.7
28.4
33.4
24.3
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
7.9
11.5
30.8
18.7
7.7
16.9
100.0
0.2
1.0
1.9
2.3
2.7
8.8
12.3
31.1
18.1
7.3
14.8
100.0
0.0
0.1
0.5
0.9
1.3
5.4
9.2
29.9
20.5
9.0
23.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing
carried interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
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
89.9
90.1
95.8
98.5
98.4
99.7
99.3
99.8
94.6
61.7
41.8
95.4
0.0
0.0
0.2
0.0
0.1
0.0
0.0
0.0
5.4
38.3
58.1
0.1
Percent Change
in After-Tax
Income 4
9.2
7.2
6.5
5.6
4.5
4.1
4.0
3.1
2.1
0.4
-0.2
4.8
Share of Total
Federal Tax
Change
4.0
14.9
19.1
16.4
10.3
18.2
9.1
6.3
1.6
0.1
-0.1
100.0
Average Federal Tax Change
Dollars
Percent
-668
-1,189
-1,619
-1,786
-1,761
-2,113
-2,776
-3,122
-4,630
-1,954
2,907
-1,672
115.0
162.1
-119.7
-39.1
-22.8
-16.9
-13.8
-9.3
-5.9
-1.0
0.3
-25.3
Share of Federal Taxes
Change (%
Points)
Average Federal Tax Rate5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-2.5
-8.2
-1.1
8.7
11.8
30.2
19.2
20.9
8.4
3.5
9.0
100.0
-10.0
-7.5
-6.2
-4.9
-3.7
-3.3
-3.1
-2.3
-1.5
-0.3
0.1
-4.0
-18.7
-12.1
-1.0
7.6
12.6
16.2
19.2
22.5
24.6
27.1
34.2
11.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
8.0
12.4
13.5
11.1
22.1
11.8
11.0
4.1
1.5
3.1
100.0
2.1
9.9
14.0
14.0
11.0
21.1
10.9
9.8
3.6
1.3
2.4
100.0
-0.9
-2.3
4.0
10.6
11.4
27.2
16.6
17.2
6.7
2.6
6.7
100.0
-1.6
-5.8
-5.1
-2.0
0.4
3.0
2.6
3.7
1.7
0.9
2.3
0.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,467
5,224
4,903
3,826
2,437
3,581
1,358
845
139
23
11
24,862
9.9
21.0
19.7
15.4
9.8
14.4
5.5
3.4
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,689
15,879
26,283
36,558
47,271
63,957
90,406
135,286
302,335
696,822
2,985,224
41,756
Average
Federal Tax
Burden
(Dollars)
-582
-734
1,352
4,569
7,719
12,479
20,145
33,536
79,137
191,073
1,018,822
6,618
Average AfterTax Income 4
(Dollars)
7,271
16,613
24,931
31,989
39,552
51,478
70,262
101,750
223,198
505,749
1,966,402
35,138
Average
Federal Tax
Rate 5
-8.7
-4.6
5.2
12.5
16.3
19.5
22.3
24.8
26.2
27.4
34.1
15.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing
carried interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2012
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
dollars) 2
With Tax Cut
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
87.1
97.3
98.7
99.8
99.6
99.9
99.9
100.0
98.8
62.8
39.2
98.0
Percent of Tax Units
3
With Tax
Increase
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
1.2
37.2
60.8
0.7
Percent Change
in After-Tax
Income 4
9.7
8.6
8.7
7.6
6.6
5.3
5.0
5.2
3.3
0.4
-0.2
4.4
Share of Total
Federal Tax
Change
1.3
5.5
8.2
7.6
6.3
13.3
13.6
32.5
11.7
0.5
-0.6
100.0
Average Federal Tax Change
Dollars
Percent
-698
-1,498
-2,203
-2,451
-2,623
-2,817
-3,652
-5,658
-7,051
-1,862
4,476
-3,218
90.3
116.1
-245.0
-57.7
-35.2
-23.4
-19.1
-16.2
-8.7
-0.9
0.4
-14.5
Share of Federal Taxes
Change (%
Points)
-0.3
-1.0
-1.3
-1.0
-0.6
-0.9
-0.6
-0.6
1.3
1.3
3.5
0.0
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.5
-1.7
-0.8
0.9
2.0
7.3
9.7
28.4
21.0
9.8
23.8
100.0
-10.9
-9.3
-8.4
-6.7
-5.5
-4.3
-4.0
-3.9
-2.4
-0.3
0.1
-3.4
-22.9
-17.4
-5.0
4.9
10.2
14.1
16.9
20.4
24.9
29.7
34.8
20.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
2,972
5,814
5,867
4,921
3,825
7,471
5,897
9,105
2,642
433
204
49,293
6.0
11.8
11.9
10.0
7.8
15.2
12.0
18.5
5.4
0.9
0.4
100.0
Average
Income
(Dollars)
6,433
16,048
26,305
36,655
47,340
65,217
91,884
143,825
298,516
715,609
3,148,106
95,214
Average
Federal Tax
Burden
(Dollars)
-774
-1,291
899
4,246
7,445
12,027
19,147
34,928
81,492
214,276
1,090,986
22,259
Average AfterTax Income 4
(Dollars)
7,206
17,339
25,406
32,408
39,895
53,189
72,737
108,897
217,024
501,332
2,057,120
72,956
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
-12.0
-8.0
3.4
11.6
15.7
18.4
20.8
24.3
27.3
29.9
34.7
23.4
0.4
2.0
3.3
3.8
3.9
10.4
11.5
27.9
16.8
6.6
13.7
100.0
0.6
2.8
4.2
4.4
4.2
11.1
11.9
27.6
15.9
6.0
11.7
100.0
-0.2
-0.7
0.5
1.9
2.6
8.2
10.3
29.0
19.6
8.5
20.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
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 extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28
percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried
interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0135
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2012
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
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
With Tax Cut
3
With Tax
Increase
43.9
39.6
57.0
70.3
81.6
94.4
99.5
99.6
97.9
80.8
61.9
73.9
0.0
0.1
0.0
0.2
0.3
0.1
0.0
0.1
2.1
19.2
38.1
0.5
Percent Change
in After-Tax
Income 4
1.5
0.9
1.3
1.3
2.1
2.4
3.5
4.4
4.8
2.3
0.9
3.0
Share of Total
Federal Tax
Change
0.3
1.2
2.6
2.0
2.7
9.4
14.6
35.2
23.6
4.6
3.9
100.0
Average Federal Tax Change
Dollars
Percent
-87
-141
-312
-434
-895
-1,373
-2,703
-5,019
-10,740
-11,579
-18,298
-2,021
-32.6
-26.0
-25.3
-20.2
-25.3
-17.5
-18.8
-17.1
-13.6
-5.6
-1.7
-11.7
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.1
-0.2
-0.4
-0.7
-1.5
-0.4
0.7
3.0
0.0
Under the
Proposal
0.1
0.4
1.0
1.0
1.1
5.8
8.3
22.6
19.8
10.3
29.5
100.0
Average Federal Tax Rate 5
Change (%
Points)
-1.5
-0.9
-1.2
-1.2
-1.9
-2.1
-3.0
-3.5
-3.5
-1.6
-0.6
-2.4
Under the
Proposal
3.0
2.5
3.6
4.7
5.6
9.8
12.8
17.1
22.5
27.2
33.8
17.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
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
1,848
5,108
5,158
2,815
1,850
4,184
3,301
4,291
1,343
244
130
30,291
6.1
16.9
17.0
9.3
6.1
13.8
10.9
14.2
4.4
0.8
0.4
100.0
Average
Income
(Dollars)
5,990
16,184
25,829
36,231
47,206
65,731
91,141
142,313
303,063
717,151
3,111,488
85,420
Average
Federal Tax
Burden
(Dollars)
267
543
1,232
2,152
3,543
7,837
14,370
29,378
78,893
206,720
1,068,635
17,306
Average AfterTax Income 4
(Dollars)
5,722
15,640
24,598
34,079
43,662
57,893
76,771
112,935
224,170
510,431
2,042,853
68,114
Average
Federal Tax
Rate 5
4.5
3.4
4.8
5.9
7.5
11.9
15.8
20.6
26.0
28.8
34.3
20.3
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.4
3.2
5.2
3.9
3.4
10.6
11.6
23.6
15.7
6.8
15.7
100.0
0.5
3.9
6.2
4.7
3.9
11.7
12.3
23.5
14.6
6.0
12.9
100.0
0.1
0.5
1.2
1.2
1.3
6.3
9.1
24.1
20.2
9.6
26.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
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 extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28
percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried
interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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.