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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
74.4
87.4
95.3
96.9
79.7
85.4
0.1
0.2
0.1
0.3
12.7
2.0
4.1
2.3
1.5
1.0
-1.5
0.0
453.0
547.7
543.6
501.9
-1,954.1
100.0
-455
-606
-659
-728
3,240
-25
-3.9
-2.1
-1.3
-0.8
1.2
0.0
0.7
8.2
15.0
18.3
26.0
20.6
91.9
93.2
49.5
13.0
2.7
0.3
0.6
40.1
86.7
97.3
0.7
0.4
-0.7
-5.2
-6.5
241.7
88.8
-210.1
-2,074.4
-1,166.5
-797
-598
1,744
67,366
375,834
-0.6
-0.3
0.5
3.7
4.5
21.1
22.4
25.1
32.3
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 5.1
Proposal: 4.1
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold
for inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h) 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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2009 dollars): 20% $19,429, 40% $37,634, 60% $65,903, 80% $112,079, 90% $162,348, 95% $227,254, 99% $601,435, 99.9%
$2,737,383.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
74.4
87.4
95.3
96.9
79.7
85.4
0.1
0.2
0.1
0.3
12.7
2.0
4.1
2.3
1.5
1.0
-1.5
0.0
453.0
547.7
543.6
501.9
-1,954.1
100.0
-455
-606
-659
-728
3,240
-25
-84.5
-20.4
-7.8
-4.3
4.7
-0.2
-0.7
-0.9
-0.8
-0.8
3.2
0.0
0.1
3.3
10.1
17.6
68.7
100.0
-3.9
-2.1
-1.3
-0.8
1.2
0.0
0.7
8.2
15.0
18.3
26.0
20.6
91.9
93.2
49.5
13.0
2.7
0.3
0.6
40.1
86.7
97.3
0.7
0.4
-0.7
-5.2
-6.5
241.7
88.8
-210.1
-2,074.4
-1,166.5
-797
-598
1,744
67,366
375,834
-2.7
-1.3
2.1
12.9
14.4
-0.4
-0.1
0.4
3.3
1.8
13.8
10.2
16.3
28.4
14.5
-0.6
-0.3
0.5
3.7
4.5
21.1
22.4
25.1
32.3
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
539
2,965
8,499
17,046
69,724
15,744
11,062
25,887
43,725
71,932
210,505
60,424
4.6
10.3
16.3
19.2
24.9
20.7
3.7
8.4
13.9
19.8
54.5
100.0
4.5
9.5
14.7
20.2
51.6
100.0
0.8
4.2
10.9
18.3
65.6
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
29,966
44,562
85,080
522,580
2,606,053
108,419
151,986
260,494
1,302,608
5,761,221
21.7
22.7
24.6
28.6
31.2
13.5
9.4
13.4
18.1
8.4
13.4
9.2
12.8
16.3
7.3
14.2
10.3
16.0
25.1
12.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 5.1
Proposal: 4.1
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h)
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;
(i) 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; (j) 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; (k) limit value of itemized deduction to 28 percent; (l) maintain the
estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2009 dollars): 20% $19,429,
40% $37,634, 60% $65,903, 80% $112,079, 90% $162,348, 95% $227,254, 99% $601,435, 99.9% $2,737,383.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
78.4
81.3
92.6
96.7
83.0
85.4
0.0
0.3
0.2
0.2
9.9
2.0
5.5
2.4
1.6
1.1
-1.4
0.0
486.6
480.7
512.6
532.2
-1,919.9
100.0
-593
-574
-634
-686
2,478
-25
-487.4
-25.8
-9.2
-4.7
4.2
-0.2
-0.8
-0.8
-0.8
-0.8
3.1
0.0
-0.6
2.2
7.9
16.7
73.7
100.0
-5.4
-2.2
-1.4
-0.9
1.1
0.0
-4.3
6.3
13.5
17.8
25.8
20.6
96.4
87.7
59.5
16.2
4.9
0.1
0.3
29.0
83.2
95.0
0.7
0.4
-0.6
-4.9
-6.4
264.8
91.0
-195.2
-2,080.4
-1,193.9
-681
-466
1,270
55,965
323,951
-2.7
-1.2
1.8
12.4
14.2
-0.4
-0.1
0.3
3.3
1.9
15.1
11.6
17.6
29.4
15.0
-0.6
-0.3
0.4
3.5
4.4
21.2
22.7
24.9
32.0
35.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
31,706
32,349
31,237
29,980
29,936
157,348
20.2
20.6
19.9
19.1
19.0
100.0
10,935
26,208
46,322
77,565
235,547
76,169
122
2,223
6,902
14,488
58,395
15,744
10,814
23,984
39,421
63,078
177,152
60,424
1.1
8.5
14.9
18.7
24.8
20.7
2.9
7.1
12.1
19.4
58.8
100.0
3.6
8.2
13.0
19.9
55.8
100.0
0.2
2.9
8.7
17.5
70.6
100.0
15,019
7,540
5,940
1,436
142
9.6
4.8
3.8
0.9
0.1
117,658
167,170
294,212
1,584,726
7,360,192
25,599
38,369
71,947
450,452
2,275,063
92,059
128,801
222,265
1,134,273
5,085,130
21.8
23.0
24.5
28.4
30.9
14.7
10.5
14.6
19.0
8.7
14.5
10.2
13.9
17.1
7.6
15.5
11.7
17.3
26.1
13.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
Number of AMT Taxpayers (millions). Baseline: 5.1
Proposal: 4.1
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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;
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) reinstate the 39.6 percent bracket; (h) 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; (i)
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;
(j) 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; (k) limit value of itemized deduction to 28
percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,268, 40% $24,875, 60% $42,021, 80% $68,444, 90% $98,198, 95% $139,231, 99% $363,345, 99.9%
$1,676,752.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Single Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
73.1
72.7
91.1
96.0
84.0
80.9
0.0
0.3
0.0
0.0
5.1
0.8
4.1
1.8
1.5
1.0
-0.8
0.5
41.9
38.8
47.7
38.9
-68.0
100.0
-318
-323
-439
-434
914
-187
-53.5
-15.1
-7.6
-3.8
2.4
-2.0
-0.8
-0.7
-0.7
-0.4
2.7
0.0
0.8
4.5
12.0
20.8
61.8
100.0
-3.8
-1.6
-1.3
-0.8
0.6
-0.4
3.3
9.1
15.5
19.9
26.2
20.4
96.4
77.6
70.2
20.5
5.0
0.0
0.0
11.5
78.3
95.0
0.6
0.2
0.0
-4.2
-6.3
16.2
3.2
-0.8
-86.6
-53.9
-411
-171
54
30,911
219,255
-2.1
-0.6
0.1
9.6
12.4
0.0
0.2
0.3
2.2
1.3
15.7
11.1
14.5
20.6
10.2
-0.5
-0.1
0.0
2.9
4.2
22.8
24.2
24.3
33.2
38.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
16,972
15,474
14,005
11,543
9,596
68,932
24.6
22.5
20.3
16.8
13.9
100.0
8,380
19,970
34,261
55,833
151,979
43,878
595
2,136
5,750
11,543
38,847
9,146
7,785
17,835
28,511
44,290
113,132
34,731
5,066
2,373
1,795
361
32
7.4
3.4
2.6
0.5
0.1
84,037
119,032
204,548
1,060,631
5,243,107
19,540
28,971
49,655
320,963
1,770,925
64,497
90,061
154,893
739,669
3,472,182
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.1
10.7
16.8
20.7
25.6
20.8
4.7
10.2
15.9
21.3
48.2
100.0
5.5
11.5
16.7
21.4
45.3
100.0
1.6
5.2
12.8
21.1
59.1
100.0
23.3
24.3
24.3
30.3
33.8
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.6
11.2
4.6
15.7
10.9
14.1
18.4
8.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h)
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; (i) 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 inf
(j) 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; (k) limit value of itemized
deduction to 28 percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,268, 40% $24,875, 60% $42,021, 80% $68,444, 90% $98,198, 95% $139,231, 99%
$363,345, 99.9% $1,676,752.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
77.4
83.1
91.9
97.2
84.0
87.3
0.0
0.1
0.3
0.4
12.3
3.9
6.0
3.0
1.7
1.2
-1.5
-0.4
-25.0
-36.1
-44.8
-60.0
266.6
100.0
-859
-919
-891
-910
3,268
372
-657.3
-35.3
-11.2
-5.5
4.7
1.4
-0.3
-0.5
-0.7
-1.0
2.6
0.0
-0.3
0.9
4.8
14.1
80.3
100.0
-5.9
-2.8
-1.5
-1.0
1.2
0.3
-5.0
5.1
11.9
16.6
25.7
21.7
98.6
94.0
56.3
15.3
5.2
0.1
0.4
36.3
84.4
94.8
0.8
0.4
-0.7
-5.1
-6.4
-34.4
-13.3
31.1
283.2
157.1
-885
-625
1,822
63,614
349,925
-3.0
-1.5
2.2
13.0
14.6
-0.7
-0.4
0.2
3.4
1.9
15.0
12.3
19.6
33.4
16.7
-0.6
-0.3
0.5
3.6
4.4
20.5
22.2
25.1
31.6
34.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,622
8,956
11,470
15,032
18,609
61,357
10.8
14.6
18.7
24.5
30.3
100.0
14,526
33,405
59,671
95,023
281,842
126,020
131
2,606
7,959
16,700
69,156
26,988
14,395
30,798
51,712
78,322
212,686
99,032
8,860
4,843
3,890
1,015
102
14.4
7.9
6.3
1.7
0.2
138,312
192,091
337,723
1,748,464
7,890,377
29,223
43,217
82,834
488,983
2,392,574
109,089
148,874
254,888
1,259,482
5,497,804
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.9
7.8
13.3
17.6
24.5
21.4
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.5
9.8
19.4
65.1
100.0
0.1
1.4
5.5
15.2
77.7
100.0
21.1
22.5
24.5
28.0
30.3
15.9
12.0
17.0
23.0
10.5
15.9
11.9
16.3
21.0
9.3
15.6
12.6
19.5
30.0
14.8
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h)
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; (i) 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 inf
(j) 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; (k) limit value of itemized
deduction to 28 percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,268, 40% $24,875, 60% $42,021, 80% $68,444, 90% $98,198, 95% $139,231, 99%
$363,345, 99.9% $1,676,752.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
90.2
96.0
97.8
97.2
63.9
92.8
0.0
0.4
0.2
0.0
6.9
0.5
6.7
2.4
1.4
0.9
-1.0
1.8
47.8
32.4
19.7
10.2
-10.2
100.0
-971
-688
-616
-582
1,302
-649
102.4
-36.9
-8.1
-3.9
3.0
-11.3
-6.8
-2.9
1.0
2.5
6.2
0.0
-12.0
7.1
28.5
32.1
44.3
100.0
-7.2
-2.3
-1.2
-0.8
0.7
-1.6
-14.2
3.8
13.9
18.8
25.0
12.2
72.1
62.3
38.6
6.9
1.0
0.0
0.1
31.9
91.3
98.8
0.3
0.3
-0.6
-5.1
-6.4
1.3
0.5
-1.3
-10.6
-5.6
-262
-306
1,186
51,257
308,337
-1.0
-0.9
1.8
12.6
14.3
1.7
0.7
1.2
2.6
1.3
16.4
6.6
9.1
12.2
5.8
-0.2
-0.2
0.4
3.6
4.4
22.6
23.1
23.7
32.3
35.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
7,840
7,497
5,095
2,777
1,242
24,547
31.9
30.5
20.8
11.3
5.1
100.0
13,490
30,617
50,275
76,881
178,521
41,760
-948
1,865
7,613
15,008
43,246
5,737
14,438
28,752
42,662
61,873
135,275
36,023
805
232
173
33
3
3.3
0.9
0.7
0.1
0.0
112,763
154,893
278,418
1,423,600
6,950,503
25,716
36,112
64,664
408,225
2,156,464
87,047
118,781
213,753
1,015,375
4,794,039
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-7.0
6.1
15.1
19.5
24.2
13.7
10.3
22.4
25.0
20.8
21.6
100.0
12.8
24.4
24.6
19.4
19.0
100.0
-5.3
9.9
27.5
29.6
38.1
100.0
22.8
23.3
23.2
28.7
31.0
8.9
3.5
4.7
4.6
2.0
7.9
3.1
4.2
3.8
1.6
14.7
5.9
7.9
9.6
4.5
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-1).
(1) Calendar year. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income
tax cuts permanent and makes 2009 estate tax law permanent. 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) reinstate the 39.6 percent bracket; (h)
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; (i) 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 inf
(j) 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; (k) limit value of itemized
deduction to 28 percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,268, 40% $24,875, 60% $42,021, 80% $68,444, 90% $98,198, 95% $139,231, 99%
$363,345, 99.9% $1,676,752.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table - Tax Units with Children
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
94.7
98.9
99.3
98.6
76.5
93.9
0.0
0.2
0.3
0.6
15.6
2.9
7.6
3.2
1.8
1.2
-1.8
0.2
151.4
132.2
119.9
116.2
-421.2
100.0
-1,208
-1,032
-946
-959
4,096
-165
94.5
-48.5
-10.0
-4.9
5.2
-0.9
-1.3
-1.1
-0.9
-0.8
4.2
0.0
-2.7
1.2
9.3
19.4
72.7
100.0
-8.2
-3.0
-1.5
-0.9
1.3
-0.2
-16.9
3.2
13.7
18.1
26.9
20.1
94.7
83.8
32.8
6.2
0.9
0.1
1.1
58.5
93.5
99.1
0.8
0.3
-1.3
-6.0
-6.8
50.8
11.4
-74.7
-408.7
-206.1
-934
-465
3,851
88,365
462,632
-2.7
-0.9
3.7
14.3
15.0
-0.3
0.0
0.8
3.7
1.9
15.9
10.9
17.8
28.0
13.5
-0.6
-0.2
1.0
4.2
4.7
21.7
23.1
26.8
33.8
36.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
10,133
10,359
10,251
9,800
8,315
49,155
20.6
21.1
20.9
19.9
16.9
100.0
14,723
34,672
62,298
103,142
306,063
95,419
-1,278
2,128
9,454
19,657
78,281
19,342
16,001
32,544
52,844
83,484
227,782
76,077
4,398
1,976
1,567
374
36
9.0
4.0
3.2
0.8
0.1
157,496
224,546
400,356
2,088,455
9,839,694
35,098
52,389
103,272
618,103
3,076,390
122,398
172,157
297,084
1,470,352
6,763,304
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-8.7
6.1
15.2
19.1
25.6
20.3
3.2
7.7
13.6
21.6
54.3
100.0
4.3
9.0
14.5
21.9
50.7
100.0
-1.4
2.3
10.2
20.3
68.5
100.0
22.3
23.3
25.8
29.6
31.3
14.8
9.5
13.4
16.7
7.6
14.4
9.1
12.5
14.7
6.5
16.2
10.9
17.0
24.3
11.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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;
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) reinstate the 39.6 percent bracket; (h) 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; (i)
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;
(j) 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; (k) limit value of itemized deduction to 28
percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,268, 40% $24,875, 60% $42,021, 80% $68,444, 90% $98,198, 95% $139,231, 99% $363,345, 99.9%
$1,676,752.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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 T09-0285
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
Detail Table - Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
33.1
46.4
72.0
88.4
84.4
63.5
0.0
0.1
0.1
0.1
10.6
2.0
0.8
0.5
0.5
0.5
-1.5
-0.7
-3.5
-6.8
-8.6
-13.7
132.7
100.0
-88
-105
-182
-315
2,985
414
-33.6
-12.3
-7.7
-4.1
5.1
3.2
-0.1
-0.3
-0.4
-0.8
1.5
0.0
0.2
1.5
3.2
10.0
85.1
100.0
-0.8
-0.5
-0.4
-0.5
1.2
0.6
1.6
3.3
5.3
10.6
24.2
17.7
93.0
95.4
77.8
22.8
4.9
0.0
0.0
18.9
76.3
95.0
0.4
0.3
-0.2
-4.0
-5.9
-6.2
-3.5
3.7
138.7
88.5
-323
-321
331
40,407
263,609
-2.0
-1.1
0.6
10.2
12.8
-0.5
-0.4
-0.5
2.9
2.1
9.5
9.2
20.0
46.3
24.0
-0.3
-0.2
0.1
2.9
4.0
15.3
18.1
22.0
31.4
35.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of Total
5,016
8,213
5,981
5,495
5,617
30,543
16.4
26.9
19.6
18.0
18.4
100.0
10,899
22,528
41,094
70,238
257,048
75,737
263
852
2,362
7,742
59,126
13,011
10,636
21,676
38,732
62,496
197,922
62,726
2,427
1,362
1,394
434
42
8.0
4.5
4.6
1.4
0.1
105,444
153,103
267,882
1,396,961
6,520,091
16,430
28,059
58,526
397,527
2,053,318
89,014
125,044
209,356
999,434
4,466,773
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.4
3.8
5.8
11.0
23.0
17.2
2.4
8.0
10.6
16.7
62.4
100.0
2.8
9.3
12.1
17.9
58.0
100.0
0.3
1.8
3.6
10.7
83.6
100.0
15.6
18.3
21.9
28.5
31.5
11.1
9.0
16.1
26.2
12.0
11.3
8.9
15.2
22.6
9.9
10.0
9.6
20.5
43.4
21.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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. Administration baseline extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. 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;
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) reinstate the 39.6 percent bracket; (h) 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; (i)
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;
(j) 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; (k) limit value of itemized deduction to
28 percent; (l) maintain the estate tax at its 2009 parameters. 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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing by
the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,268, 40% $24,875, 60% $42,021, 80% $68,444, 90% $98,198, 95% $139,231, 99% $363,345, 99.9%
$1,676,752.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) 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.
(6) 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.