23-Jun-06
Preliminary Results
http://www.taxpolicycenter.org
Table T06-0182
H.R. 5638 As Amended and Passed by The House, The Permanent Estate Tax Relief Act of 2006
Assuming 15 Percent Capital Gains Rate
Distribution of Federal Tax Change by Cash Income Class, 2011 1
Cash Income Class
(thousands of 2005
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units3
With Tax
Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.4
0.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income4
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.5
0.8
0.9
0.7
0.4
Share of
Total Federal
Tax Change
0.1
0.5
0.9
0.8
1.4
2.0
2.2
30.4
28.7
11.5
20.1
100.0
Average Federal Tax Change
Dollars
-2
-6
-14
-15
-36
-30
-52
-549
-1,877
-4,720
-16,091
-217
Percent
-0.8
-0.6
-0.4
-0.2
-0.4
-0.2
-0.2
-1.4
-2.1
-2.1
-1.5
-1.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.1
0.1
-0.1
-0.2
-0.1
-0.1
0.0
Under the
Proposal
0.2
0.9
2.7
3.8
4.5
11.9
11.3
25.9
16.4
6.5
15.9
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
-0.1
0.0
-0.1
0.0
-0.1
-0.4
-0.6
-0.6
-0.5
-0.3
Under the
Proposal
4.3
6.0
12.0
16.1
18.5
20.9
22.6
25.1
27.3
28.5
32.0
23.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Class, 2011 1
Cash Income Class
(thousands of 2005
dollars)2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units3
Number
(thousands)
17,076
24,604
22,025
16,710
13,168
22,575
14,102
18,722
5,166
825
423
155,984
Percent of
Total
11.0
15.8
14.1
10.7
8.4
14.5
9.0
12.0
3.3
0.5
0.3
100.0
Average
Income
(Dollars)
6,303
17,000
28,090
39,487
50,814
69,796
98,049
152,864
324,098
769,080
3,274,032
76,577
Average
Federal Tax
Burden
(Dollars)
272
1,024
3,390
6,356
9,420
14,614
22,227
38,956
90,254
223,525
1,063,621
18,028
Average
After-Tax
Income4
(Dollars)
6,031
15,976
24,700
33,131
41,394
55,182
75,822
113,908
233,844
545,555
2,210,411
58,549
Average
Federal Tax
Rate5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
4.3
6.0
12.1
16.1
18.5
20.9
22.7
25.5
27.9
29.1
32.5
23.5
0.9
3.5
5.2
5.5
5.6
13.2
11.6
24.0
14.0
5.3
11.6
100.0
1.1
4.3
6.0
6.1
6.0
13.6
11.7
23.4
13.2
4.9
10.2
100.0
Share of
Federal Taxes
Percent of
Total
0.2
0.9
2.7
3.8
4.4
11.7
11.2
25.9
16.6
6.6
16.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
(1) Calendar year. Baseline is current law plus the extension of the lower rates on capital gains and qualifying dividends enacted by JGTRRA. Provisions include: $5 million effective exemption
indexed for inflation after 2010; statutory rate of 15 percent on taxable estate between $5 million and $25 million and 30 percent on taxable estate greater than $25 million; repeal the state death tax
credit (and do not allow a deduction for state estate taxes paid); repeal the 5-percent surtax.
(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. Tax units that are dependents of other taxpayers are excluded from the analysis.
(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.