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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
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
77.2
76.8
83.6
91.3
94.0
96.0
96.0
91.8
51.3
15.1
7.0
85.6
With Tax
Increase
0.0
0.2
0.2
0.1
0.1
0.0
0.3
0.5
36.3
84.2
92.7
2.4
Percent Change
in After-Tax
Income 4
6.4
3.9
2.5
2.0
1.6
1.3
0.9
0.6
-0.6
-3.3
-5.9
0.0
Share of Total
Federal Tax
Change
-550.2
-1,347.9
-1,304.1
-1,027.8
-807.9
-1,558.6
-1,045.4
-1,484.9
834.3
1,747.6
6,669.6
100.0
Average
Federal Tax
Change ($)
-349
-590
-601
-649
-654
-696
-694
-707
1,437
17,378
130,427
6
Average Federal Tax Rate5
Change (%
Points)
-6.1
-3.7
-2.3
-1.8
-1.4
-1.1
-0.8
-0.5
0.5
2.4
4.1
0.0
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: 4.9
Proposal: 3.2
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA;
maintains the estate tax at its 2009 parameters; extends the 2009 AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption
threshold for inflation). 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. 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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
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
77.2
76.8
83.6
91.3
94.0
96.0
96.0
91.8
51.3
15.1
7.0
85.6
0.0
0.2
0.2
0.1
0.1
0.0
0.3
0.5
36.3
84.2
92.7
2.4
Percent Change
in After-Tax
Income 4
6.4
3.9
2.5
2.0
1.6
1.3
0.9
0.6
-0.6
-3.3
-5.9
0.0
Share of Total
Federal Tax
Change
-550.2
-1,347.9
-1,304.1
-1,027.8
-807.9
-1,558.6
-1,045.4
-1,484.9
834.3
1,747.6
6,669.6
100.0
Average Federal Tax Change
Dollars
-349
-590
-601
-649
-654
-696
-694
-707
1,437
17,378
130,427
6
Percent
-109.8
-76.2
-26.1
-13.7
-8.9
-6.1
-4.0
-2.3
2.0
9.4
13.9
0.0
Share of Federal Taxes
Change (%
Points)
-0.2
-0.5
-0.5
-0.4
-0.3
-0.6
-0.4
-0.6
0.3
0.7
2.7
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)
-6.1
-3.7
-2.3
-1.8
-1.4
-1.1
-0.8
-0.5
0.5
2.4
4.1
0.0
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)
318
775
2,306
4,737
7,342
11,465
17,198
30,345
72,309
184,521
941,514
16,014
Average AfterTax Income 4
(Dollars)
5,423
15,125
23,866
31,914
39,908
53,553
74,417
112,385
227,843
530,418
2,224,095
61,837
Average
Federal Tax
Rate 5
5.5
4.9
8.8
12.9
15.5
17.6
18.8
21.3
24.1
25.8
29.7
20.6
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
3.6
5.4
5.3
5.1
12.5
11.7
24.6
13.8
5.6
11.9
100.0
0.2
0.7
2.0
3.0
3.7
10.3
10.4
25.7
16.9
7.5
19.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 4.9
Proposal: 3.2
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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. 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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Level, 2012
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
With Tax Cut
3
With Tax
Increase
76.7
70.4
79.6
91.1
95.1
96.0
93.8
71.7
36.9
17.2
9.7
81.6
0.0
0.3
0.1
0.1
0.0
0.0
0.0
0.0
56.4
81.7
90.1
1.0
Percent Change
in After-Tax
Income 4
5.6
2.5
1.7
1.5
1.2
0.9
0.5
0.1
-1.1
-3.4
-5.8
0.5
Share of Total
Federal Tax
Change
27.3
41.3
38.5
30.5
21.8
33.5
10.5
4.1
-16.8
-19.4
-71.8
100.0
Average Federal Tax Change
Dollars
-289
-355
-383
-469
-442
-439
-333
-146
2,586
17,117
119,774
-174
Percent
-55.2
-24.5
-11.4
-7.6
-4.9
-3.2
-1.6
-0.4
3.4
8.7
11.9
-1.9
Share of Federal Taxes
Change (%
Points)
-0.5
-0.7
-0.6
-0.4
-0.3
-0.3
0.0
0.3
0.5
0.5
1.6
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 Rate 5
Change (%
Points)
-5.1
-2.2
-1.5
-1.3
-0.9
-0.7
-0.4
-0.1
0.9
2.4
3.9
-0.4
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)
523
1,450
3,359
6,204
9,084
13,616
20,886
33,253
77,078
197,454
1,007,756
9,381
Average AfterTax Income 4
(Dollars)
5,156
14,347
22,688
30,405
38,119
50,682
69,805
106,110
227,549
509,228
2,053,757
35,856
Average
Federal Tax
Rate 5
9.2
9.2
12.9
17.0
19.2
21.2
23.0
23.9
25.3
27.9
32.9
20.7
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
8.1
11.1
9.6
9.1
18.8
10.7
14.6
7.2
2.8
6.0
100.0
0.9
3.1
6.3
7.5
8.3
19.3
12.3
17.4
9.3
4.2
11.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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. 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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Level, 2012
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
With Tax Cut
3
With Tax
Increase
64.4
81.1
81.3
84.9
89.4
95.0
97.0
98.3
54.4
14.9
6.6
87.2
0.0
0.0
0.1
0.3
0.1
0.1
0.5
0.4
32.4
84.5
93.1
4.6
Percent Change
in After-Tax
Income 4
6.6
5.5
3.7
2.8
2.5
1.8
1.1
0.8
-0.5
-3.3
-5.9
-0.4
Share of Total
Federal Tax
Change
-2.4
-12.0
-16.4
-14.7
-15.2
-34.9
-31.6
-53.5
22.3
54.8
204.4
100.0
Average Federal Tax Change
Dollars
-311
-868
-934
-959
-1,062
-994
-864
-854
1,220
17,387
129,468
440
Percent
-126.8
-180.7
-72.2
-32.4
-21.0
-10.5
-5.5
-2.9
1.7
9.5
14.2
1.6
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.3
-0.2
-0.3
-0.6
-0.6
-1.3
0.0
0.7
2.9
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 Rate 5
Change (%
Points)
-6.3
-5.3
-3.6
-2.6
-2.2
-1.5
-0.9
-0.6
0.4
2.4
4.2
0.3
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)
246
480
1,293
2,958
5,067
9,478
15,612
29,714
71,459
182,549
911,766
27,486
Average AfterTax Income 4
(Dollars)
4,723
15,859
25,051
33,800
42,292
56,645
76,572
114,088
227,826
534,053
2,211,473
101,280
Average
Federal Tax
Rate 5
4.9
2.9
4.9
8.1
10.7
14.3
16.9
20.7
23.9
25.5
29.2
21.4
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
2.6
8.7
12.2
31.1
18.1
7.3
15.2
100.0
0.0
0.1
0.4
0.7
1.2
5.3
9.2
29.8
20.9
9.2
23.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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. 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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Level, 2012
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
With Tax Cut
3
With Tax
Increase
89.9
89.8
94.6
97.8
97.9
98.5
95.0
50.0
31.7
12.9
3.2
92.4
0.0
0.0
0.3
0.1
0.1
0.0
0.0
0.0
47.9
84.6
96.2
0.5
Percent Change
in After-Tax
Income 4
9.1
6.1
3.2
2.1
1.4
1.1
0.7
0.2
-0.7
-3.2
-6.0
1.8
Share of Total
Federal Tax
Change
10.1
33.3
25.0
16.5
8.4
13.4
4.5
1.0
-1.4
-2.4
-8.4
100.0
Average Federal Tax Change
Dollars
-663
-1,027
-823
-695
-553
-603
-537
-185
1,630
16,668
125,228
-649
Percent
112.8
114.7
-147.8
-20.0
-8.5
-5.5
-3.0
-0.6
2.2
9.7
14.0
-11.6
Share of Federal Taxes
Change (%
Points)
-1.5
-4.8
-3.0
-0.9
0.4
2.0
1.7
2.3
1.1
0.7
2.0
0.0
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
Average Federal Tax Rate 5
Change (%
Points)
-9.9
-6.5
-3.1
-1.9
-1.2
-0.9
-0.6
-0.1
0.5
2.4
4.2
-1.6
Under the
Proposal
-18.7
-12.1
-1.0
7.6
12.6
16.2
19.2
22.5
24.6
27.1
34.2
11.8
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)
-587
-896
557
3,478
6,511
10,969
17,906
30,599
72,877
172,452
896,501
5,595
Average AfterTax Income 4
(Dollars)
7,276
16,775
25,726
33,080
40,760
52,988
72,501
104,687
229,458
524,370
2,088,723
36,162
Average
Federal Tax
Rate 5
-8.8
-5.6
2.1
9.5
13.8
17.2
19.8
22.6
24.1
24.8
30.0
13.4
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
2.0
9.8
14.0
14.1
11.1
21.1
11.0
9.8
3.6
1.3
2.5
100.0
-1.0
-3.4
2.0
9.6
11.4
28.2
17.5
18.6
7.3
2.8
7.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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. 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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
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
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
87.1
97.2
98.4
99.4
99.3
99.5
98.1
94.9
49.1
8.4
2.4
93.3
0.0
0.0
0.1
0.0
0.1
0.0
0.8
0.7
33.9
91.0
97.3
3.3
Percent Change
in After-Tax
Income 4
9.4
7.3
4.3
3.1
2.5
1.8
1.3
0.8
-0.5
-3.8
-6.5
0.2
Share of Total
Federal Tax
Change
31.7
116.9
105.7
80.4
62.7
116.6
87.0
136.6
-49.3
-136.0
-454.3
100.0
Average Federal Tax Change
Dollars
-680
-1,281
-1,148
-1,042
-1,044
-995
-941
-956
1,189
20,041
142,185
-129
Percent
85.8
85.0
738.9
-36.7
-17.8
-9.8
-5.7
-3.2
1.6
10.4
14.9
-0.7
Share of Federal Taxes
Change (%
Points)
-0.2
-0.8
-0.7
-0.5
-0.4
-0.7
-0.5
-0.7
0.5
1.0
3.2
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
-10.6
-8.0
-4.4
-2.8
-2.2
-1.5
-1.0
-0.7
0.4
2.8
4.5
-0.1
-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)
-792
-1,508
-155
2,837
5,867
10,205
16,436
30,227
73,252
192,374
953,277
19,170
Average AfterTax Income 4
(Dollars)
7,225
17,556
26,461
33,817
41,473
55,011
75,447
113,598
225,264
523,235
2,194,829
76,045
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
-12.3
-9.4
-0.6
7.7
12.4
15.7
17.9
21.0
24.5
26.9
30.3
20.1
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
2.7
4.1
4.4
4.2
11.0
11.9
27.6
15.9
6.0
11.9
100.0
-0.3
-0.9
-0.1
1.5
2.4
8.1
10.3
29.1
20.5
8.8
20.5
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 the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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. 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 T09-0137
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
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
34.8
49.3
62.9
69.5
83.4
89.4
94.0
61.5
22.3
8.8
64.6
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.4
34.5
76.9
90.8
2.6
Percent Change
in After-Tax
Income 4
1.4
0.5
0.5
0.4
0.4
0.5
0.4
0.3
-0.7
-2.5
-5.2
-0.7
Share of Total
Federal Tax
Change
-1.0
-2.9
-4.0
-2.7
-2.2
-7.9
-7.9
-10.7
15.5
22.7
101.3
100.0
Average Federal Tax Change
Dollars
-81
-82
-113
-138
-169
-272
-348
-360
1,662
13,447
112,367
477
Percent
-30.9
-17.0
-10.9
-7.4
-6.0
-4.0
-2.9
-1.5
2.5
7.4
12.0
3.2
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.1
-0.1
-0.4
-0.5
-1.1
-0.1
0.4
2.3
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)
-1.4
-0.5
-0.4
-0.4
-0.4
-0.4
-0.4
-0.3
0.6
1.9
3.6
0.6
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)
261
484
1,033
1,856
2,818
6,737
12,014
24,719
66,491
181,694
937,970
14,808
Average AfterTax Income 4
(Dollars)
5,729
15,700
24,797
34,375
44,388
58,994
79,127
117,594
236,572
535,458
2,173,518
70,612
Average
Federal Tax
Rate 5
4.4
3.0
4.0
5.1
6.0
10.3
13.2
17.4
21.9
25.3
30.2
17.3
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
3.8
6.0
4.5
3.8
11.5
12.2
23.6
14.9
6.1
13.2
100.0
0.1
0.6
1.2
1.2
1.2
6.3
8.8
23.7
19.9
9.9
27.2
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 the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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. 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.