21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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
0.0
2.1
4.7
7.6
9.4
16.8
24.1
37.3
65.3
83.0
90.6
15.3
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.2
0.4
0.7
1.6
0.3
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
0.2
0.5
0.7
0.9
2.9
3.5
11.3
15.2
11.1
53.8
100.0
0
-2
-7
-15
-23
-41
-78
-177
-826
-3,413
-32,609
-205
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.5
-1.1
-0.3
Under the
Proposal
5.3
4.6
8.8
12.9
15.7
17.8
19.5
22.0
24.9
27.0
32.0
21.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.8
Proposal: 3.8
** This table is part of a series of tables showing the distributional effects of moving incrementally from current law to current policy. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Law to Current Policy” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=366
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the
10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout
threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax Credit (EITC), the Child and Dependent Care
Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term
capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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 3
With Tax Cut
With Tax
Increase
0.0
2.1
4.7
7.6
9.4
16.8
24.1
37.3
65.3
83.0
90.6
15.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.2
0.4
0.7
1.6
0.3
Share of Total
Federal Tax
Change
0.0
0.2
0.5
0.7
0.9
2.9
3.5
11.3
15.2
11.1
53.8
100.0
Average Federal Tax Change
Dollars
0
-2
-7
-15
-23
-41
-78
-177
-826
-3,413
-32,609
-205
Percent
0.0
-0.3
-0.3
-0.3
-0.3
-0.4
-0.4
-0.6
-1.1
-1.8
-3.2
-1.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.0
0.0
-0.4
0.0
Under the
Proposal
0.2
0.7
1.9
2.9
3.7
10.1
9.9
25.0
17.1
7.8
20.7
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.5
-1.1
-0.3
Under the
Proposal
5.3
4.6
8.8
12.9
15.7
17.8
19.5
22.0
24.9
27.0
32.0
21.4
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)
16,958
24,305
21,133
16,074
12,909
22,702
14,431
20,606
5,930
1,048
531
157,348
Percent of
Total
10.8
15.5
13.4
10.2
8.2
14.4
9.2
13.1
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,723
15,533
25,808
36,190
46,615
64,099
90,195
141,257
296,062
704,969
3,114,004
76,169
Average
Federal Tax
Burden
(Dollars)
305
710
2,282
4,698
7,327
11,437
17,670
31,178
74,551
193,878
1,028,372
16,477
Average AfterTax Income 4
(Dollars)
5,418
14,823
23,525
31,491
39,288
52,662
72,525
110,079
221,511
511,092
2,085,632
59,692
Average
Federal Tax
Rate 5
5.3
4.6
8.8
13.0
15.7
17.8
19.6
22.1
25.2
27.5
33.0
21.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.2
4.6
4.9
5.0
12.1
10.9
24.3
14.7
6.2
13.8
100.0
1.0
3.8
5.3
5.4
5.4
12.7
11.1
24.2
14.0
5.7
11.8
100.0
0.2
0.7
1.9
2.9
3.7
10.0
9.8
24.8
17.1
7.8
21.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.8
Proposal: 3.8
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0
percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
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 Cut
With Tax
Increase
0.0
3.3
6.7
10.9
13.3
19.9
30.1
46.0
72.6
82.9
90.9
11.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.1
0.1
0.1
0.1
0.2
0.3
0.7
1.1
1.9
0.3
Share of Total
Federal Tax
Change
0.0
0.7
1.8
2.4
3.0
6.8
5.2
16.5
16.9
10.1
36.6
100.0
Average Federal Tax Change
Dollars
0
-3
-11
-22
-35
-56
-104
-351
-1,545
-5,274
-35,247
-104
Percent
0.0
-0.3
-0.3
-0.4
-0.4
-0.4
-0.5
-1.0
-1.9
-2.5
-3.3
-1.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.0
-0.1
-0.1
-0.3
0.0
Under the
Proposal
0.9
2.9
5.9
7.3
8.4
18.6
11.9
17.9
9.8
4.4
11.8
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-0.5
-0.8
-1.2
-0.2
Under the
Proposal
8.5
8.4
13.3
17.5
19.6
21.9
24.2
25.2
27.2
30.0
34.6
21.6
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)
Percent of
Total
12,161
14,889
11,204
7,555
6,018
8,766
3,599
3,384
787
138
75
68,932
17.6
21.6
16.3
11.0
8.7
12.7
5.2
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,710
15,384
25,667
36,120
46,555
63,234
89,193
137,406
300,163
697,814
2,972,435
43,878
Average
Federal Tax
Burden
(Dollars)
483
1,295
3,431
6,332
9,181
13,907
21,693
34,919
83,068
214,662
1,064,325
9,576
Average AfterTax Income 4
(Dollars)
5,227
14,089
22,236
29,788
37,374
49,327
67,500
102,487
217,095
483,151
1,908,110
34,301
Average
Federal Tax
Rate 5
8.5
8.4
13.4
17.5
19.7
22.0
24.3
25.4
27.7
30.8
35.8
21.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
7.6
9.5
9.0
9.3
18.3
10.6
15.4
7.8
3.2
7.3
100.0
2.7
8.9
10.5
9.5
9.5
18.3
10.3
14.7
7.2
2.8
6.0
100.0
0.9
2.9
5.8
7.3
8.4
18.5
11.8
17.9
9.9
4.5
12.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income
Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains
(0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
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 Cut
With Tax
Increase
0.0
0.0
4.0
6.9
7.2
17.3
23.7
36.3
64.4
83.4
90.8
24.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.3
0.6
1.5
0.4
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.2
0.3
1.6
2.9
10.0
14.7
11.7
58.5
100.0
Average Federal Tax Change
Dollars
0
0
-4
-13
-15
-37
-74
-144
-692
-3,114
-31,270
-379
Percent
0.0
0.0
-0.4
-0.5
-0.3
-0.4
-0.5
-0.5
-1.0
-1.6
-3.1
-1.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.3
0.1
0.0
-0.5
0.0
Under the
Proposal
0.0
0.1
0.3
0.7
1.2
5.4
8.5
28.6
20.9
9.6
24.6
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.4
-1.0
-0.3
Under the
Proposal
4.8
2.8
4.6
7.6
10.5
14.2
17.5
21.2
24.5
26.6
31.5
22.2
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
2,172
4,097
4,842
4,391
4,095
9,883
9,149
16,193
4,941
876
435
61,357
3.5
6.7
7.9
7.2
6.7
16.1
14.9
26.4
8.1
1.4
0.7
100.0
Average
Income
(Dollars)
4,766
16,031
25,959
36,302
46,760
65,241
90,792
142,545
295,420
706,519
3,075,014
126,020
Average
Federal Tax
Burden
(Dollars)
228
441
1,190
2,765
4,905
9,312
15,926
30,397
73,166
190,776
1,000,110
28,302
Average AfterTax Income 4
(Dollars)
4,538
15,590
24,769
33,537
41,855
55,929
74,866
112,148
222,254
515,742
2,074,904
97,718
Average
Federal Tax
Rate 5
4.8
2.8
4.6
7.6
10.5
14.3
17.5
21.3
24.8
27.0
32.5
22.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.9
1.6
2.1
2.5
8.3
10.7
29.9
18.9
8.0
17.3
100.0
0.2
1.1
2.0
2.5
2.9
9.2
11.4
30.3
18.3
7.5
15.1
100.0
0.0
0.1
0.3
0.7
1.2
5.3
8.4
28.4
20.8
9.6
25.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income
Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains
(0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
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 Cut
With Tax
Increase
0.0
0.1
0.6
2.1
4.3
7.6
11.3
23.5
54.7
68.9
84.8
3.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.5
0.6
1.6
0.1
Share of Total
Federal Tax
Change
0.0
0.1
0.2
1.0
1.9
5.9
7.5
11.5
19.7
9.5
42.6
100.0
Average Federal Tax Change
Dollars
0
0
0
-2
-6
-13
-44
-106
-1,062
-3,224
-31,799
-33
Percent
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.2
-0.4
-1.5
-1.8
-3.2
-0.6
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.0
-0.1
0.0
-0.2
0.0
Under the
Proposal
-0.9
-3.1
1.8
9.2
11.3
27.4
17.7
18.8
7.5
2.9
7.4
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.4
-0.5
-1.1
-0.1
Under the
Proposal
-7.8
-5.7
2.1
9.6
14.1
17.4
20.3
22.9
24.2
25.5
32.6
13.9
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
2,483
5,029
4,757
3,767
2,449
3,559
1,389
877
150
24
11
24,547
10.1
20.5
19.4
15.4
10.0
14.5
5.7
3.6
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,647
15,579
25,971
36,157
46,569
63,082
89,214
132,993
294,130
686,382
2,985,055
41,760
Average
Federal Tax
Burden
(Dollars)
-520
-890
540
3,470
6,570
10,978
18,158
30,579
72,371
178,381
1,003,447
5,832
Average AfterTax Income 4
(Dollars)
7,167
16,469
25,432
32,687
39,999
52,105
71,056
102,414
221,759
508,001
1,981,609
35,928
Average
Federal Tax
Rate 5
-7.8
-5.7
2.1
9.6
14.1
17.4
20.4
23.0
24.6
26.0
33.6
14.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
7.6
12.1
13.3
11.1
21.9
12.1
11.4
4.3
1.6
3.2
100.0
2.0
9.4
13.7
14.0
11.1
21.0
11.2
10.2
3.8
1.4
2.4
100.0
-0.9
-3.1
1.8
9.1
11.2
27.3
17.6
18.7
7.6
3.0
7.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income
Tax Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains
(0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.3
1.6
4.2
9.1
15.5
30.4
59.7
80.8
90.1
14.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.4
1.4
0.3
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.1
0.2
1.1
2.2
8.5
13.7
10.5
63.8
100.0
Average Federal Tax Change
Dollars
0
0
0
-1
-5
-13
-35
-84
-461
-2,208
-28,716
-189
Percent
0.0
0.0
0.1
0.0
-0.1
-0.1
-0.2
-0.3
-0.6
-1.1
-2.7
-0.9
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.1
0.0
-0.4
0.0
Under the
Proposal
-0.2
-0.9
-0.1
1.4
2.3
7.7
9.9
28.8
20.6
9.0
21.5
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.9
-0.2
Under the
Proposal
-11.6
-9.4
-0.8
7.6
12.6
15.9
18.4
21.5
25.2
28.4
33.1
21.0
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
2,968
5,639
5,683
4,891
3,849
7,425
5,841
9,319
2,750
441
206
49,155
6.0
11.5
11.6
10.0
7.8
15.1
11.9
19.0
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
6,252
15,769
25,918
36,161
46,701
64,368
90,740
142,137
293,742
705,334
3,105,769
95,419
Average
Federal Tax
Burden
(Dollars)
-725
-1,488
-196
2,765
5,864
10,233
16,712
30,570
74,433
202,721
1,057,272
20,264
Average AfterTax Income 4
(Dollars)
6,978
17,257
26,114
33,396
40,837
54,135
74,028
111,568
219,309
502,613
2,048,497
75,155
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
-11.6
-9.4
-0.8
7.7
12.6
15.9
18.4
21.5
25.3
28.7
34.0
21.2
0.4
1.9
3.1
3.8
3.8
10.2
11.3
28.2
17.2
6.6
13.7
100.0
0.6
2.6
4.0
4.4
4.3
10.9
11.7
28.1
16.3
6.0
11.4
100.0
-0.2
-0.8
-0.1
1.4
2.3
7.6
9.8
28.6
20.6
9.0
21.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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 plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0
percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0146
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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 3
With Tax Cut
With Tax
Increase
0.0
3.6
9.1
17.8
17.7
35.7
49.3
68.2
80.9
87.1
94.4
25.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.1
0.1
0.1
0.2
0.3
0.5
0.9
1.2
2.0
0.7
Share of Total
Federal Tax
Change
0.0
0.2
0.6
1.0
0.9
4.1
4.7
14.0
18.2
12.4
44.0
100.0
Average Federal Tax Change
Dollars
0
-4
-15
-41
-48
-114
-230
-580
-1,998
-6,266
-41,309
-406
Percent
0.0
-1.0
-1.3
-1.9
-1.4
-1.6
-1.8
-2.1
-2.7
-3.3
-4.0
-2.9
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.0
-0.1
-0.4
0.0
Under the
Proposal
0.1
0.6
1.4
1.5
1.9
7.2
7.4
18.8
19.3
10.8
30.9
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.3
-0.4
-0.7
-0.9
-1.3
-0.5
Under the
Proposal
3.1
2.6
4.5
5.9
7.5
10.6
14.0
18.7
23.7
25.9
31.8
18.2
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
2,305
6,471
5,084
2,999
2,259
4,405
2,504
2,986
1,128
245
132
30,543
7.6
21.2
16.7
9.8
7.4
14.4
8.2
9.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,366
15,655
25,560
36,054
46,537
64,489
89,136
141,589
304,121
709,954
3,095,895
75,737
Average
Federal Tax
Burden
(Dollars)
200
405
1,160
2,180
3,534
6,942
12,687
27,099
74,018
190,337
1,026,517
14,171
Average AfterTax Income 4
(Dollars)
6,166
15,250
24,400
33,874
43,004
57,547
76,448
114,490
230,104
519,617
2,069,377
61,566
Average
Federal Tax
Rate 5
3.1
2.6
4.5
6.1
7.6
10.8
14.2
19.1
24.3
26.8
33.2
18.7
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.6
4.7
4.5
12.3
9.7
18.3
14.8
7.5
17.7
100.0
0.8
5.3
6.6
5.4
5.2
13.5
10.2
18.2
13.8
6.8
14.5
100.0
0.1
0.6
1.4
1.5
1.8
7.1
7.3
18.7
19.3
10.8
31.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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 plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0
percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent).
(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.