29-May-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 T09-0282
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
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 Units
With Tax Cut
72.0
73.8
88.4
94.8
97.0
99.1
99.8
99.9
98.9
77.7
57.4
90.0
3
With Tax
Increase
0.0
0.2
0.2
0.2
0.1
0.1
0.0
0.0
1.1
22.3
42.6
0.4
Percent
Change in
After-Tax
4
Income
5.9
4.5
4.8
4.5
4.0
3.8
4.0
4.5
3.6
1.2
0.2
3.6
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
1.7
4.9
7.2
6.8
6.1
13.5
12.4
30.5
14.2
2.0
0.8
100.0
-318
-659
-1,104
-1,371
-1,546
-1,935
-2,797
-4,786
-7,715
-6,157
-4,628
-2,071
Average Federal Tax Rate
Change (%
Points)
-5.6
-4.3
-4.3
-3.8
-3.3
-3.0
-3.1
-3.4
-2.6
-0.9
-0.2
-2.7
5
Under the
Proposal
-0.2
1.1
6.4
11.1
14.0
16.4
18.4
21.1
24.4
27.6
33.7
20.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 18.2
Proposal: 4.1
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out
thesholds for inflation after 2010; (b) extend the higher EITC credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify
the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d) create automatic 401(k)s and IRAs; (e)
extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to
$250,000 less the standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal
exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal exemption phase-out and limitation on itemized deductions to
$250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers
in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income
individuals (marriage penalty relief, the 10, 15, 25, 28 percent brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the
$1,000 child tax credit, and the expanded child and dependent care credit). 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0282
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 3
With Tax Cut
With Tax
Increase
72.0
73.8
88.4
94.8
97.0
99.1
99.8
99.9
98.9
77.7
57.4
90.0
0.0
0.2
0.2
0.2
0.1
0.1
0.0
0.0
1.1
22.3
42.6
0.4
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
5.9
4.5
4.8
4.5
4.0
3.8
4.0
4.5
3.6
1.2
0.2
3.6
1.7
4.9
7.2
6.8
6.1
13.5
12.4
30.5
14.2
2.0
0.8
100.0
Average Federal Tax Change
Dollars
Percent
-318
-659
-1,104
-1,371
-1,546
-1,935
-2,797
-4,786
-7,715
-6,157
-4,628
-2,071
-102.7
-79.0
-40.0
-25.5
-19.2
-15.6
-14.5
-13.9
-9.7
-3.1
-0.4
-11.6
Share of Federal Taxes
Change (%
Points)
-0.2
-0.6
-0.7
-0.5
-0.3
-0.5
-0.3
-0.7
0.4
0.7
2.5
0.0
Under the
Proposal
0.0
0.2
1.4
2.6
3.4
9.6
9.6
24.9
17.4
8.3
22.5
100.0
Average Federal Tax Rate 5
Change (%
Points)
-5.6
-4.3
-4.3
-3.8
-3.3
-3.0
-3.1
-3.4
-2.6
-0.9
-0.2
-2.7
Under the
Proposal
-0.2
1.1
6.4
11.1
14.0
16.4
18.4
21.1
24.4
27.6
33.7
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)
16,867
24,202
21,129
16,119
12,811
22,730
14,433
20,762
5,989
1,052
533
157,348
Percent of Total
10.7
15.4
13.4
10.2
8.1
14.5
9.2
13.2
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,698
15,471
25,711
36,076
46,449
63,828
89,794
140,646
294,838
703,124
3,105,866
76,169
Average
Federal Tax
Burden
(Dollars)
310
834
2,761
5,370
8,034
12,414
19,270
34,422
79,626
200,119
1,050,659
17,790
Average AfterTax Income 4
(Dollars)
5,388
14,637
22,949
30,706
38,416
51,415
70,524
106,224
215,213
503,005
2,055,206
58,378
Average
Federal Tax
Rate 5
5.4
5.4
10.7
14.9
17.3
19.5
21.5
24.5
27.0
28.5
33.8
23.4
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.8
3.1
4.5
4.9
5.0
12.1
10.8
24.4
14.7
6.2
13.8
100.0
1.0
3.9
5.3
5.4
5.4
12.7
11.1
24.0
14.0
5.8
11.9
100.0
0.2
0.7
2.1
3.1
3.7
10.1
9.9
25.5
17.0
7.5
20.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 18.2
Proposal: 4.1
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent
brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care credit). 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0282
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
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 Units 3
With Tax Cut
With Tax
Increase
71.4
68.0
87.6
96.9
99.3
99.5
99.8
99.4
96.5
79.0
61.9
85.2
0.0
0.3
0.2
0.1
0.0
0.0
0.0
0.1
3.4
20.9
38.1
0.2
Percent
Change in
After-Tax
4
Income
5.1
3.1
3.3
3.0
2.9
2.9
3.5
4.1
4.8
3.1
0.7
3.3
Share of Total
Federal Tax
Change
4.2
8.3
10.6
8.8
8.2
16.3
10.9
18.2
10.5
2.6
1.3
100.0
Average Federal Tax Change
Dollars
Percent
-266
-429
-728
-894
-1,058
-1,418
-2,303
-4,071
-10,187
-14,531
-13,749
-1,114
-55.2
-30.6
-19.6
-13.5
-11.1
-9.8
-10.1
-11.0
-11.7
-6.6
-1.3
-11.1
Share of Federal Taxes
Change (%
Points)
-0.4
-0.7
-0.6
-0.2
0.0
0.3
0.1
0.0
-0.1
0.2
1.3
0.0
Under the
Proposal
0.4
2.3
5.4
7.1
8.2
18.7
12.1
18.3
9.8
4.6
13.0
100.0
Average Federal Tax Rate
Change (%
Points)
-4.7
-2.8
-2.9
-2.5
-2.3
-2.3
-2.6
-3.0
-3.4
-2.1
-0.5
-2.5
5
Under the
Proposal
3.8
6.3
11.7
16.0
18.2
20.8
23.1
24.1
25.6
29.5
36.2
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
12,093
14,849
11,214
7,581
5,967
8,814
3,630
3,425
789
138
75
68,932
17.5
21.5
16.3
11.0
8.7
12.8
5.3
5.0
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,684
15,322
25,573
36,006
46,386
62,955
88,784
136,925
299,674
695,858
2,961,621
43,878
Average
Federal Tax
Burden
(Dollars)
483
1,400
3,710
6,645
9,506
14,498
22,839
37,103
86,825
220,104
1,085,900
10,073
Average After4
Tax Income
(Dollars)
5,201
13,922
21,863
29,360
36,879
48,457
65,945
99,822
212,849
475,753
1,875,721
33,804
Average
Federal Tax
Rate 5
8.5
9.1
14.5
18.5
20.5
23.0
25.7
27.1
29.0
31.6
36.7
23.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
7.5
9.5
9.0
9.2
18.4
10.7
15.5
7.8
3.2
7.4
100.0
2.7
8.9
10.5
9.6
9.4
18.3
10.3
14.7
7.2
2.8
6.1
100.0
0.8
3.0
6.0
7.3
8.2
18.4
11.9
18.3
9.9
4.4
11.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the
standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for
the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends
for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent
brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care credit). 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0282
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
Percent of Tax Units 3
Cash Income Level
(thousands of 2009
2
dollars)
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
59.6
73.4
81.2
87.2
92.1
98.6
99.8
100.0
99.4
78.2
57.1
92.9
With Tax
Increase
0.0
0.0
0.3
0.5
0.2
0.1
0.0
0.0
0.6
21.8
42.9
0.8
Percent
Change in
After-Tax
4
Income
6.5
5.7
6.2
5.7
5.1
4.2
4.1
4.7
3.5
1.0
0.2
3.5
Share of Total
Federal Tax
Change
0.3
1.8
3.5
4.0
4.2
11.1
13.5
40.3
18.3
2.2
0.8
100.0
Average Federal Tax Change
Dollars
Percent
-292
-880
-1,492
-1,851
-2,088
-2,307
-3,010
-5,046
-7,446
-5,022
-3,800
-3,324
-115.7
-158.6
-83.1
-50.1
-35.3
-22.1
-17.1
-14.9
-9.5
-2.6
-0.4
-10.8
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.4
-0.4
-0.4
-0.7
-0.6
-1.3
0.3
0.9
2.8
0.0
Under the
Proposal
0.0
-0.1
0.1
0.5
0.9
4.8
7.9
28.0
21.2
10.1
26.5
100.0
Average Federal Tax Rate
Change (%
Points)
-6.2
-5.5
-5.8
-5.1
-4.5
-3.6
-3.3
-3.6
-2.5
-0.7
-0.1
-2.6
5
Under the
Proposal
-0.8
-2.0
1.2
5.1
8.2
12.6
16.2
20.3
24.2
27.3
33.2
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
2,164
4,064
4,828
4,406
4,057
9,840
9,114
16,285
4,998
880
437
61,357
3.5
6.6
7.9
7.2
6.6
16.0
14.9
26.5
8.2
1.4
0.7
100.0
Average
Income
(Dollars)
4,748
15,973
25,857
36,192
46,612
64,984
90,400
141,926
294,061
704,704
3,067,872
126,020
Average
Federal Tax
Burden
(Dollars)
253
555
1,795
3,696
5,909
10,462
17,634
33,901
78,523
197,246
1,022,576
30,683
Average After4
Tax Income
(Dollars)
4,495
15,418
24,062
32,495
40,704
54,522
72,767
108,025
215,538
507,457
2,045,296
95,337
Average
Federal Tax
Rate 5
5.3
3.5
6.9
10.2
12.7
16.1
19.5
23.9
26.7
28.0
33.3
24.4
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
2.1
2.5
8.3
10.7
29.9
19.0
8.0
17.3
100.0
0.2
1.1
2.0
2.5
2.8
9.2
11.3
30.1
18.4
7.6
15.3
100.0
0.0
0.1
0.5
0.9
1.3
5.5
8.5
29.3
20.9
9.2
23.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the
standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for
the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends
for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent
brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care credit). 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0282
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
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 Units 3
With Tax Cut
With Tax
Increase
84.9
90.1
97.0
99.0
99.2
99.7
99.5
99.8
94.6
60.4
46.4
95.4
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
5.4
39.6
53.6
0.1
Percent
Change in
After-Tax
4
Income
8.4
7.2
6.6
5.7
4.7
4.2
4.0
3.0
2.2
0.4
-0.1
4.8
Share of Total
Federal Tax
Change
3.6
14.2
18.6
16.5
10.9
18.6
9.3
6.5
1.7
0.1
-0.1
100.0
Average Federal Tax Change
Dollars
Percent
-597
-1,160
-1,605
-1,788
-1,823
-2,126
-2,729
-2,975
-4,719
-2,160
2,194
-1,669
117.3
161.8
-118.9
-39.2
-23.8
-17.4
-13.6
-9.0
-6.2
-1.2
0.2
-24.7
Share of Federal Taxes
Change (%
Points)
-1.4
-5.4
-4.8
-2.0
0.1
2.6
2.5
3.7
1.7
0.8
2.2
0.0
Under the
Proposal
-2.2
-7.5
-1.0
8.4
11.4
29.0
19.4
21.6
8.5
3.4
8.9
100.0
Average Federal Tax Rate
Change (%
Points)
-9.0
-7.5
-6.2
-5.0
-3.9
-3.4
-3.1
-2.3
-1.6
-0.3
0.1
-4.0
5
Under the
Proposal
-16.7
-12.1
-1.0
7.7
12.6
16.1
19.5
22.7
24.1
26.4
34.2
12.2
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
2,467
4,998
4,757
3,777
2,442
3,577
1,399
895
150
24
11
24,547
10.1
20.4
19.4
15.4
10.0
14.6
5.7
3.7
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,622
15,513
25,869
36,040
46,392
62,829
88,811
132,422
294,067
684,765
2,969,130
41,760
Average
Federal Tax
Burden
(Dollars)
-509
-717
1,351
4,562
7,663
12,250
20,042
33,071
75,703
182,588
1,013,529
6,757
Average After4
Tax Income
(Dollars)
7,131
16,230
24,518
31,478
38,730
50,579
68,768
99,351
218,363
502,177
1,955,600
35,003
Average
Federal Tax
Rate 5
-7.7
-4.6
5.2
12.7
16.5
19.5
22.6
25.0
25.7
26.7
34.1
16.2
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
12.0
13.3
11.1
21.9
12.1
11.6
4.3
1.6
3.2
100.0
2.1
9.4
13.6
13.8
11.0
21.1
11.2
10.4
3.8
1.4
2.5
100.0
-0.8
-2.2
3.9
10.4
11.3
26.4
16.9
17.8
6.9
2.6
6.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Baseline is current law. Proposal would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the
standard deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for
the personal exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends
for taxpayers in the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent
brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care credit). 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0282
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
Percent of Tax Units 3
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
84.0
96.8
99.0
99.6
99.7
99.9
100.0
100.0
99.1
72.1
46.6
97.9
With Tax
Increase
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.8
27.9
53.4
0.5
Percent Change
in After-Tax
Income 4
9.2
8.6
8.7
7.7
6.6
5.3
5.0
5.1
3.4
0.7
-0.1
4.4
Share of Total
Federal Tax
Change
1.2
5.2
7.8
7.6
6.3
13.1
13.0
32.6
12.6
1.0
-0.4
100.0
Average Federal Tax Change
Dollars
Percent
-640
-1,457
-2,167
-2,441
-2,600
-2,794
-3,539
-5,489
-7,164
-3,373
2,769
-3,217
91.1
115.9
-249.7
-58.5
-35.4
-23.7
-18.7
-16.0
-9.0
-1.6
0.3
-14.4
Share of Federal Taxes
Change (%
Points)
-0.2
-1.0
-1.2
-1.0
-0.6
-0.9
-0.5
-0.6
1.3
1.3
3.5
0.0
Average Federal Tax Rate 5
Under the
Proposal
Change (%
Points)
Under the
Proposal
-0.4
-1.6
-0.8
0.9
1.9
7.1
9.5
28.7
21.3
9.7
23.7
100.0
-10.3
-9.3
-8.4
-6.8
-5.6
-4.4
-3.9
-3.9
-2.5
-0.5
0.1
-3.4
-21.6
-17.3
-5.0
4.8
10.2
14.0
17.0
20.4
24.7
29.2
34.8
20.1
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
2,948
5,596
5,687
4,892
3,846
7,413
5,821
9,378
2,778
445
207
49,155
6.0
11.4
11.6
10.0
7.8
15.1
11.8
19.1
5.7
0.9
0.4
100.0
Average
Income
(Dollars)
6,225
15,695
25,809
36,039
46,542
64,136
90,376
141,540
292,361
702,705
3,097,146
95,419
Average
Federal Tax
Burden
(Dollars)
-702
-1,257
868
4,173
7,336
11,798
18,883
34,321
79,483
208,478
1,074,354
22,395
Average AfterTax Income 4
(Dollars)
6,927
16,952
24,941
31,866
39,205
52,338
71,492
107,220
212,878
494,227
2,022,791
73,024
Average
Federal Tax
Rate 5
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-11.3
-8.0
3.4
11.6
15.8
18.4
20.9
24.3
27.2
29.7
34.7
23.5
0.4
1.9
3.1
3.8
3.8
10.1
11.2
28.3
17.3
6.7
13.7
100.0
0.6
2.6
4.0
4.3
4.2
10.8
11.6
28.0
16.5
6.1
11.7
100.0
-0.2
-0.6
0.5
1.9
2.6
7.9
10.0
29.2
20.1
8.4
20.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
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 would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent
brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care credit). 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.
29-May-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0282
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 3
With Tax Cut
With Tax
Increase
33.3
35.5
64.3
79.7
86.4
96.9
99.2
99.7
99.3
88.0
70.9
71.6
0.0
0.1
0.2
0.2
0.2
0.1
0.0
0.1
0.7
12.0
29.1
0.4
Percent Change
in After-Tax
Income 4
0.9
0.7
1.3
1.4
2.3
2.7
3.4
4.7
5.1
2.6
0.9
2.9
Share of Total
Federal Tax
Change
0.3
1.3
3.0
2.7
4.1
12.3
11.9
29.5
24.1
6.1
4.7
100.0
Average Federal Tax Change
Dollars
Percent
-58
-109
-320
-475
-970
-1,500
-2,560
-5,237
-11,423
-13,343
-19,061
-1,757
-29.0
-25.3
-24.6
-19.3
-25.2
-19.7
-18.4
-17.5
-14.3
-6.8
-1.8
-11.6
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.1
-0.3
-0.7
-0.6
-1.3
-0.6
0.6
3.3
0.0
Under the
Proposal
0.1
0.5
1.2
1.5
1.6
6.6
6.9
18.2
18.8
11.0
33.6
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.9
-0.7
-1.3
-1.3
-2.1
-2.3
-2.9
-3.7
-3.8
-1.9
-0.6
-2.3
Under the
Proposal
2.2
2.1
3.9
5.5
6.2
9.5
12.8
17.5
22.5
26.0
33.7
17.7
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
2,290
6,436
5,081
3,028
2,243
4,407
2,503
3,022
1,130
246
132
30,543
7.5
21.1
16.6
9.9
7.3
14.4
8.2
9.9
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,340
15,603
25,455
35,926
46,389
64,259
88,731
141,022
303,653
708,629
3,089,249
75,737
Average
Federal Tax
Burden
(Dollars)
200
430
1,301
2,459
3,849
7,632
13,877
29,872
79,640
197,347
1,059,059
15,182
Average AfterTax Income 4
(Dollars)
6,140
15,173
24,154
33,467
42,540
56,627
74,854
111,151
224,013
511,283
2,030,190
60,555
Average
Federal Tax
Rate 5
3.2
2.8
5.1
6.8
8.3
11.9
15.6
21.2
26.2
27.9
34.3
20.1
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.6
4.3
5.6
4.7
4.5
12.2
9.6
18.4
14.8
7.5
17.7
100.0
0.8
5.3
6.6
5.5
5.2
13.5
10.1
18.2
13.7
6.8
14.5
100.0
0.1
0.6
1.4
1.6
1.9
7.3
7.5
19.5
19.4
10.5
30.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
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 would: (a) extend the Making Work Pay Credit, reduce the phase-out rate to 1.6 percent, and index the phase-out thesholds for inflation after 2010; (b) extend the higher EITC
credit value for families with 3 children and higher phase-out threshold for married couples; (c) modify the saver's credit making it equal to 50% of the first $500 of retirement savings ($1,000 for couples) and fully refundable; (d)
create automatic 401(k)s and IRAs; (e) extend the American Opportunity Tax Credit; (f) extend the $3,000 child tax credit refundability threshold; (g) change the threshold for the 36-percent tax bracket to $250,000 less the standard
deduction and two personal exemptions for married couples filing jointly and $200,000 less the standard deduction and one personal exemption for single filers, indexed for inflation after 2009; (h) set the thresholds for the personal
exemption phase-out and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed for inflation after 2009; (i) impose a 20 percent rate on capital gains and qualified dividends for taxpayers in
the top two tax brackets and repeal the 8 percent and 18 percent rates for assets held for more than 5 years;
(j) limit value of itemized deduction to 28 percent; (k) maintain the estate tax at its 2009 parameters; (l) extend the 2001 and 2003 tax cuts for low and middle income individuals (marriage penalty relief, the 10, 15, 25, 28 percent
brackets, the 15 percent rate on capital gains and qualified dividends for taxpayers in those brackets, the $1,000 child tax credit, and the expanded child and dependent care credit). 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.