10‐Jun‐11
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 T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Level, 2013 1
Summary Table
Percent of Tax Units 3
Cash Income Level (thousands of 2011 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
27.9
55.3
83.6
93.9
96.4
98.8
99.6
99.8
99.9
100.0
100.0
80.0
With Tax Increase
*
0.1
0.1
0.2
0.2
0.1
*
*
*
0.0
0.0
0.1
Percent Change in After‐Tax Income 2.5
2.3
3.6
4.1
4.4
5.8
7.0
9.7
13.8
19.4
33.0
11.3
4
Share of Total Federal Tax Change
0.3
0.9
1.6
2.1
2.2
6.5
6.9
20.5
17.1
9.6
32.3
100.0
Average Federal Tax Change ($)
‐139
‐337
‐833
‐1,274
‐1,686
‐2,977
‐4,914
‐10,236
‐29,237
‐94,880
‐629,326
‐6,267
Average Federal Tax Rate5
Change (% Points)
Under the Proposal
‐2.4
‐2.2
‐3.3
‐3.6
‐3.7
‐4.7
‐5.5
‐7.3
‐10.0
‐13.6
‐20.8
‐8.7
2.3
1.7
6.4
10.4
12.7
14.4
16.0
17.3
17.4
16.0
16.3
15.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
Number of AMT Taxpayers (millions). Baseline: 21.0 Proposal: 0.0
* Less than 0.05
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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. TPC estimates are based on Governor Pawlenty's description of his tax proposal and subsequent remarks to the New York Times by his spokesperson Alex Conant. Because Governor Pawlenty did not specify which corporate tax expenditures he would eliminate, we provide an illustrative option that broadens the corporate tax base by eliminating the tax expenditures included in the Bipartisan Policy Center's Rivlin‐Domenici plan. Based on remarks by the Governor and Alex Conant, we did not eliminate any individual income tax expenditures. If Governor Pawlenty or his campaign staff provide the Tax Policy Center with additional details on his proposal we will re‐estimate his plan. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2013 Detail Table
Cash Income Level (thousands of 2011 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
27.9
55.3
83.6
93.9
96.4
98.8
99.6
99.8
99.9
100.0
100.0
80.0
*
0.1
0.1
0.2
0.2
0.1
*
*
*
0.0
0.0
0.1
Percent Change in After‐Tax Income 4
2.5
2.3
3.6
4.1
4.4
5.8
7.0
9.7
13.8
19.4
33.0
11.3
Share of Total Federal Tax Change
0.3
0.9
1.6
2.1
2.2
6.5
6.9
20.5
17.1
9.6
32.3
100.0
Average Federal Tax Change
Dollars
Percent
‐139
‐337
‐833
‐1,274
‐1,686
‐2,977
‐4,914
‐10,236
‐29,237
‐94,880
‐629,326
‐6,267
‐51.0
‐57.3
‐33.8
‐25.6
‐22.3
‐24.7
‐25.7
‐29.7
‐36.4
‐45.9
‐56.0
‐36.7
Share of Federal Taxes
Change (% Points)
‐0.1
‐0.2
0.1
0.5
0.8
1.8
1.7
2.8
0.1
‐1.1
‐6.5
0.0
Average Federal Tax Rate 5
Under the Proposal
Change (% Points)
0.2
0.4
1.9
3.5
4.4
11.5
11.6
28.1
17.3
6.5
14.7
100.0
‐2.4
‐2.2
‐3.3
‐3.6
‐3.7
‐4.7
‐5.5
‐7.3
‐10.0
‐13.6
‐20.8
‐8.7
Under the Proposal
2.3
1.7
6.4
10.4
12.7
14.4
16.0
17.3
17.4
16.0
16.3
15.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2013 Cash Income Level (thousands of 2011 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)
21,065
27,359
20,377
16,959
13,305
22,765
14,636
20,881
6,084
1,051
534
166,272
Percent of Total
12.7
16.5
12.3
10.2
8.0
13.7
8.8
12.6
3.7
0.6
0.3
100.0
Pre‐Tax Income
Average (dollars)
5,766
15,205
25,480
35,896
46,141
63,142
89,268
139,817
292,655
696,116
3,032,367
72,381
Percent of Total
1.0
3.5
4.3
5.1
5.1
11.9
10.9
24.3
14.8
6.1
13.5
100.0
Federal Tax Burden
Average (dollars)
272
589
2,466
4,988
7,566
12,061
19,150
34,450
80,280
206,532
1,123,826
17,092
Percent of Total
0.2
0.6
1.8
3.0
3.5
9.7
9.9
25.3
17.2
7.6
21.1
100.0
After‐Tax Income 4
Average (dollars)
5,493
14,616
23,015
30,908
38,575
51,081
70,119
105,367
212,376
489,584
1,908,541
55,290
Percent of Total
1.3
4.4
5.1
5.7
5.6
12.7
11.2
23.9
14.1
5.6
11.1
100.0
Average Federal Tax Rate 5
4.7
3.9
9.7
13.9
16.4
19.1
21.5
24.6
27.4
29.7
37.1
23.6
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
Number of AMT Taxpayers (millions). Baseline: 21.0 Proposal: 0.0
* Less than 0.05
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2013 Detail Table ‐ Single Tax Units
Cash Income Level (thousands of 2011 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
21.7
50.6
80.6
95.2
98.6
99.1
99.3
99.5
99.8
99.8
100.0
67.7
0.1
0.1
0.2
0.3
0.1
*
0.0
0.1
0.1
0.0
0.0
0.1
Percent Change in After‐Tax Income 4
1.7
1.2
2.5
3.7
4.7
7.8
9.9
11.4
20.1
29.6
43.8
9.5
Share of Total Federal Tax Change
0.7
1.4
2.9
4.3
4.4
13.9
9.9
16.4
14.3
7.6
23.9
100.0
Average Federal Tax Change
Dollars
Percent
‐92
‐175
‐556
‐1,104
‐1,723
‐3,739
‐6,465
‐11,372
‐41,890
‐135,326
‐756,442
‐2,889
‐22.9
‐17.6
‐17.4
‐19.2
‐18.8
‐26.4
‐28.4
‐30.5
‐46.3
‐56.6
‐61.7
‐33.5
Share of Federal Taxes
Change (% Points)
0.2
0.7
1.4
1.6
1.7
1.9
0.9
0.8
‐2.0
‐1.6
‐5.5
0.0
Average Federal Tax Rate 5
Under the Proposal
Change (% Points)
1.1
3.4
7.0
9.2
9.6
19.5
12.6
18.8
8.3
2.9
7.5
100.0
‐1.6
‐1.2
‐2.2
‐3.1
‐3.8
‐6.0
‐7.3
‐8.3
‐14.0
‐19.4
‐25.6
‐7.4
Under the Proposal
5.5
5.4
10.4
13.0
16.2
16.7
18.5
18.9
16.2
14.9
15.9
14.7
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2013 Cash Income Level (thousands of 2011 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)
16,722
19,121
12,334
9,158
5,981
8,668
3,570
3,358
794
131
74
80,622
Percent of Total
20.7
23.7
15.3
11.4
7.4
10.8
4.4
4.2
1.0
0.2
0.1
100.0
Pre‐Tax Income
Average (dollars)
5,678
15,084
25,339
35,802
45,980
62,437
88,424
136,678
298,894
696,170
2,952,272
39,043
Percent of Total
3.0
9.2
9.9
10.4
8.7
17.2
10.0
14.6
7.5
2.9
6.9
100.0
Federal Tax Burden
Average (dollars)
402
993
3,188
5,751
9,164
14,174
22,778
37,252
90,423
239,164
1,226,221
8,637
Percent of Total
1.0
2.7
5.7
7.6
7.9
17.6
11.7
18.0
10.3
4.5
13.0
100.0
After‐Tax Income 4
Average (dollars)
5,276
14,090
22,151
30,051
36,816
48,263
65,646
99,426
208,471
457,007
1,726,051
30,407
Percent of Total
3.6
11.0
11.2
11.2
9.0
17.1
9.6
13.6
6.8
2.5
5.2
100.0
Average Federal Tax Rate 5
7.1
6.6
12.6
16.1
19.9
22.7
25.8
27.3
30.3
34.4
41.5
22.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2013 Detail Table ‐ Married Tax Units Filing Jointly
Cash Income Level (thousands of 2011 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
41.8
60.5
79.1
87.3
92.2
98.5
99.8
99.9
99.9
100.0
100.0
93.9
0.0
0.1
0.1
*
0.3
0.2
*
*
*
*
*
0.1
Percent Change in After‐Tax Income 4
5.5
4.2
5.8
4.8
3.8
4.3
6.0
9.5
12.8
18.0
31.2
12.7
Share of Total Federal Tax Change
0.1
0.2
0.6
0.8
0.9
3.3
5.6
23.0
19.0
10.8
35.8
100.0
Average Federal Tax Change
Dollars
Percent
‐272
‐654
‐1,388
‐1,551
‐1,542
‐2,316
‐4,314
‐10,195
‐27,306
‐88,955
‐594,358
‐12,644
‐177.4
‐304.7
‐90.1
‐42.8
‐28.9
‐23.0
‐24.5
‐30.1
‐34.7
‐44.1
‐54.9
‐37.9
Share of Federal Taxes
Change (% Points)
0.0
‐0.1
‐0.2
‐0.1
0.2
1.3
1.9
3.7
1.1
‐0.9
‐6.8
0.0
Average Federal Tax Rate 5
Under the Proposal
Change (% Points)
0.0
‐0.1
0.0
0.6
1.4
6.7
10.5
32.6
21.9
8.3
18.0
100.0
‐5.3
‐4.1
‐5.4
‐4.3
‐3.3
‐3.6
‐4.8
‐7.2
‐9.4
‐12.8
‐19.9
‐9.5
Under the Proposal
‐2.3
‐2.8
0.6
5.7
8.2
12.1
14.8
16.8
17.6
16.2
16.4
15.6
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2013 Cash Income Level (thousands of 2011 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)
1,291
2,559
2,875
3,624
4,468
10,281
9,429
16,457
5,091
885
440
57,802
Percent of Total
2.2
4.4
5.0
6.3
7.7
17.8
16.3
28.5
8.8
1.5
0.8
100.0
Pre‐Tax Income
Average (dollars)
5,093
15,850
25,634
36,207
46,489
63,998
89,794
140,888
291,809
696,396
2,988,320
132,789
Percent of Total
0.1
0.5
1.0
1.7
2.7
8.6
11.0
30.2
19.4
8.0
17.1
100.0
Federal Tax Burden
Average (dollars)
153
215
1,541
3,625
5,342
10,088
17,579
33,901
78,741
201,726
1,083,485
33,360
Percent of Total
0.0
0.0
0.2
0.7
1.2
5.4
8.6
28.9
20.8
9.3
24.7
100.0
After‐Tax Income 4
Average (dollars)
4,940
15,635
24,093
32,582
41,148
53,910
72,215
106,986
213,068
494,671
1,904,836
99,430
Percent of Total
0.1
0.7
1.2
2.1
3.2
9.6
11.9
30.6
18.9
7.6
14.6
100.0
Average Federal Tax Rate 5
3.0
1.4
6.0
10.0
11.5
15.8
19.6
24.1
27.0
29.0
36.3
25.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2013 Detail Table ‐ Head of Household Tax Units
Cash Income Level (thousands of 2011 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
57.7
67.8
92.8
96.9
98.1
99.3
99.3
99.6
100.0
100.0
100.0
85.9
*
*
*
0.1
0.0
0.0
*
0.0
0.0
0.0
0.0
*
Percent Change in After‐Tax Income 4
5.0
4.7
4.9
4.5
4.7
5.7
7.0
6.7
11.3
16.6
33.8
6.4
Share of Total Federal Tax Change
1.9
7.5
10.7
9.7
8.2
17.3
11.8
11.0
6.5
3.5
11.9
100.0
Average Federal Tax Change
Dollars
Percent
‐353
‐761
‐1,211
‐1,420
‐1,802
‐2,851
‐4,767
‐6,641
‐23,927
‐80,284
‐601,275
‐2,170
81.0
100.2
‐117.3
‐34.0
‐24.3
‐23.3
‐23.9
‐19.9
‐31.5
‐41.8
‐55.7
‐34.4
Share of Federal Taxes
Change (% Points)
‐1.4
‐5.3
‐4.0
0.1
1.8
4.3
2.7
4.2
0.3
‐0.3
‐2.4
0.0
Average Federal Tax Rate 5
Under the Proposal
Change (% Points)
Under the Proposal
‐2.2
‐7.9
‐0.8
9.9
13.5
29.8
19.6
23.1
7.4
2.5
5.0
100.0
‐5.4
‐5.0
‐4.7
‐4.0
‐3.9
‐4.6
‐5.4
‐5.0
‐8.3
‐11.9
‐21.0
‐5.4
‐12.0
‐9.9
‐0.7
7.7
12.2
15.0
17.2
20.2
18.2
16.5
16.7
10.4
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2013 Cash Income Level (thousands of 2011 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)
2,911
5,398
4,846
3,748
2,505
3,317
1,353
905
149
24
11
25,256
Percent of Total
11.5
21.4
19.2
14.8
9.9
13.1
5.4
3.6
0.6
0.1
0.0
100.0
Pre‐Tax Income
Average (dollars)
6,577
15,312
25,728
35,771
45,998
62,381
88,201
132,511
287,163
675,227
2,859,898
39,986
Percent of Total
1.9
8.2
12.4
13.3
11.4
20.5
11.8
11.9
4.3
1.6
3.1
100.0
Federal Tax Burden
Average (dollars)
‐436
‐760
1,032
4,179
7,422
12,232
19,936
33,396
76,042
191,872
1,080,095
6,311
Percent of Total
‐0.8
‐2.6
3.1
9.8
11.7
25.5
16.9
19.0
7.1
2.9
7.3
100.0
After‐Tax Income 4
Average (dollars)
7,013
16,071
24,696
31,592
38,576
50,149
68,264
99,115
211,121
483,355
1,779,803
33,675
Percent of Total
2.4
10.2
14.1
13.9
11.4
19.6
10.9
10.5
3.7
1.4
2.3
100.0
Average Federal Tax Rate 5
‐6.6
‐5.0
4.0
11.7
16.1
19.6
22.6
25.2
26.5
28.4
37.8
15.8
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2013 Detail Table ‐ Tax Units with Children
Cash Income Level (thousands of 2011 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
58.3
79.0
95.6
98.4
98.4
99.6
99.9
99.9
99.9
100.0
100.0
93.8
*
*
0.0
0.1
0.1
*
*
*
*
0.0
0.0
*
Percent Change in After‐Tax Income 4
6.1
5.9
6.5
6.0
5.7
5.6
6.7
9.4
12.3
18.0
31.6
11.6
Share of Total Federal Tax Change
0.3
1.4
2.2
2.3
2.2
5.2
6.8
22.5
17.6
9.7
29.6
100.0
Average Federal Tax Change
Dollars
Percent
‐405
‐1,003
‐1,644
‐1,928
‐2,237
‐2,879
‐4,716
‐9,895
‐25,919
‐87,008
‐582,101
‐8,205
62.0
70.3
‐303.0
‐50.0
‐32.1
‐24.4
‐24.8
‐28.4
‐32.4
‐41.2
‐52.9
‐36.8
Share of Federal Taxes
Change (% Points)
‐0.3
‐1.2
‐1.2
‐0.4
0.2
1.5
1.9
3.9
1.4
‐0.6
‐5.2
0.0
Average Federal Tax Rate 5
Under the Proposal
Change (% Points)
Under the Proposal
‐0.5
‐2.0
‐0.9
1.3
2.7
9.4
12.0
33.0
21.4
8.0
15.4
100.0
‐6.8
‐6.5
‐6.4
‐5.4
‐4.9
‐4.5
‐5.3
‐7.0
‐8.9
‐12.5
‐19.8
‐8.8
‐17.7
‐15.7
‐4.3
5.4
10.3
14.0
16.0
17.7
18.7
17.9
17.6
15.2
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2013 Cash Income Level (thousands of 2011 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)
3,361
5,658
5,534
4,844
3,945
7,372
5,840
9,226
2,749
450
206
49,418
Percent of Total
6.8
11.5
11.2
9.8
8.0
14.9
11.8
18.7
5.6
0.9
0.4
100.0
Pre‐Tax Income
Average (dollars)
5,988
15,525
25,702
35,836
46,072
63,539
89,617
140,522
290,144
695,662
2,943,211
93,026
Percent of Total
0.4
1.9
3.1
3.8
4.0
10.2
11.4
28.2
17.4
6.8
13.2
100.0
Federal Tax Burden
Average (dollars)
‐653
‐1,427
543
3,855
6,969
11,781
19,060
34,805
80,124
211,296
1,101,078
22,303
Percent of Total
‐0.2
‐0.7
0.3
1.7
2.5
7.9
10.1
29.1
20.0
8.6
20.6
100.0
After‐Tax Income 4
Average (dollars)
6,640
16,953
25,160
31,981
39,103
51,758
70,557
105,716
210,020
484,367
1,842,133
70,722
Percent of Total
0.6
2.7
4.0
4.4
4.4
10.9
11.8
27.9
16.5
6.2
10.9
100.0
Average Federal Tax Rate 5
‐10.9
‐9.2
2.1
10.8
15.1
18.5
21.3
24.8
27.6
30.4
37.4
24.0
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0168
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Level, 2013 Detail Table ‐ Elderly Tax Units
Cash Income Level (thousands of 2011 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
17.0
26.2
60.5
84.6
89.5
98.0
99.6
99.8
99.9
99.9
100.0
68.0
0.0
*
0.3
0.5
0.5
0.2
0.0
0.0
0.1
0.0
*
0.2
Percent Change in After‐Tax Income 4
0.3
0.3
1.1
2.4
2.9
5.8
8.0
12.5
18.9
26.0
39.5
13.1
Share of Total Federal Tax Change
0.0
0.2
0.5
1.1
1.3
6.1
6.6
19.2
19.3
10.9
34.9
100.0
Average Federal Tax Change
Dollars
Percent
‐17
‐48
‐279
‐825
‐1,236
‐3,208
‐5,965
‐13,750
‐41,456
‐125,670
‐744,433
‐7,465
‐28.1
‐32.1
‐36.6
‐39.4
‐37.5
‐42.5
‐42.3
‐46.4
‐51.9
‐58.7
‐62.3
‐52.3
Share of Federal Taxes
Change (% Points)
0.0
0.1
0.2
0.4
0.6
1.5
1.7
2.7
0.2
‐1.3
‐6.1
0.0
Average Federal Tax Rate 5
Under the Proposal
Change (% Points)
0.1
0.4
1.0
1.9
2.3
9.0
9.9
24.3
19.6
8.4
23.2
100.0
‐0.3
‐0.3
‐1.1
‐2.3
‐2.7
‐5.1
‐6.7
‐9.8
‐13.9
‐18.0
‐24.2
‐10.5
Under the Proposal
0.6
0.7
1.9
3.5
4.4
6.9
9.2
11.4
12.9
12.7
14.6
9.6
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2013 Cash Income Level (thousands of 2011 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)
3,030
8,603
4,956
3,838
2,823
5,216
3,053
3,858
1,285
239
130
37,068
Percent of Total
8.2
23.2
13.4
10.4
7.6
14.1
8.2
10.4
3.5
0.7
0.4
100.0
Pre‐Tax Income
Average (dollars)
6,762
15,150
25,187
35,853
46,514
63,113
88,974
139,885
298,833
698,342
3,081,067
71,055
Percent of Total
0.8
5.0
4.7
5.2
5.0
12.5
10.3
20.5
14.6
6.4
15.2
100.0
Federal Tax Burden
Average (dollars)
60
150
762
2,093
3,301
7,541
14,117
29,636
79,844
213,998
1,195,081
14,265
Percent of Total
0.0
0.2
0.7
1.5
1.8
7.4
8.2
21.6
19.4
9.7
29.3
100.0
After‐Tax Income 4
Average (dollars)
6,702
14,999
24,425
33,760
43,213
55,571
74,857
110,249
218,990
484,344
1,885,985
56,790
Percent of Total
1.0
6.1
5.8
6.2
5.8
13.8
10.9
20.2
13.4
5.5
11.6
100.0
Average Federal Tax Rate 5
0.9
1.0
3.0
5.8
7.1
12.0
15.9
21.2
26.7
30.6
38.8
20.1
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Baseline is current law. Proposal would make 2011 tax law permanent and would also: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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.