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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Summary Table
Percent of Tax Units4
Cash Income Percentile
2,3
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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.1
14.3
2.1
0.4
1.9
4.3
8.4
17.3
5.4
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-3.1
-9.1
-25.3
137.8
100.0
0
1
2
6
-37
-4
0.0
0.0
0.0
0.0
0.0
0.0
5.3
12.3
18.2
21.5
28.1
23.4
0.2
17.8
32.9
62.5
50.3
13.6
18.4
22.7
26.5
46.5
0.0
0.0
0.1
0.0
-0.2
-28.4
6.7
258.6
-99.0
-205.5
15
-7
-344
515
10,599
0.0
0.0
-0.1
0.0
0.1
24.6
25.5
27.3
32.7
35.7
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: 18.2
Proposal: 18.6
(1) Calendar year. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of AGI (married) and $200,000 (single), indexed
for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
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
0.0
0.0
0.0
0.1
14.3
2.1
0.4
1.9
4.3
8.4
17.3
5.4
0.0
0.0
0.0
0.0
0.0
0.0
-0.4
-3.1
-9.1
-25.3
137.8
100.0
0
1
2
6
-37
-4
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
4.4
10.8
18.2
65.6
100.0
0.0
0.0
0.0
0.0
0.0
0.0
5.3
12.3
18.2
21.5
28.1
23.4
0.2
17.8
32.9
62.5
50.3
13.6
18.4
22.7
26.5
46.5
0.0
0.0
0.1
0.0
-0.2
-28.4
6.7
258.6
-99.0
-205.5
15
-7
-344
515
10,599
0.0
0.0
-0.4
0.1
0.4
0.0
0.0
-0.1
0.0
0.1
14.3
10.3
15.7
25.3
12.8
0.0
0.0
-0.1
0.0
0.1
24.6
25.5
27.3
32.7
35.7
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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
610
3,544
9,499
19,144
78,784
17,790
10,991
25,308
42,725
69,833
201,445
58,378
5.3
12.3
18.2
21.5
28.1
23.4
3.7
8.4
13.9
19.8
54.5
100.0
4.6
9.6
14.8
20.3
51.1
100.0
0.8
4.4
10.8
18.2
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
34,024
50,063
94,783
595,543
2,978,103
104,361
146,485
250,791
1,229,645
5,389,171
24.6
25.5
27.4
32.6
35.6
13.5
9.4
13.4
18.1
8.4
13.3
9.1
12.7
15.9
7.0
14.3
10.3
15.8
25.3
12.8
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: 18.2
Proposal: 18.6
(1) Calendar year. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of AGI (married)
and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
11.2
2.1
0.1
1.3
3.2
7.1
16.2
5.4
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-1.6
-6.0
-21.7
129.4
100.0
0
0
1
4
-27
-4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
3.3
8.8
17.4
70.2
100.0
0.0
0.0
0.0
0.0
0.0
0.0
2.2
10.9
17.0
20.9
27.9
23.4
0.6
7.5
31.4
58.3
49.4
11.3
18.1
23.3
28.0
46.7
0.0
0.0
0.1
0.0
-0.2
-24.2
-9.7
262.6
-99.2
-209.7
10
8
-273
427
9,107
0.0
0.0
-0.3
0.1
0.4
0.0
0.0
-0.1
0.0
0.1
15.3
11.5
17.0
26.4
13.3
0.0
0.0
-0.1
0.0
0.1
24.3
25.6
27.2
32.4
35.4
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
245
2,848
7,856
16,211
65,618
17,790
10,690
23,360
38,467
61,354
169,930
58,378
2.2
10.9
17.0
20.9
27.9
23.4
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.2
13.1
20.0
55.4
100.0
0.3
3.3
8.8
17.4
70.2
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
28,521
42,711
80,227
513,398
2,599,378
89,137
124,459
213,985
1,071,327
4,760,814
24.2
25.6
27.3
32.4
35.3
14.7
10.5
14.6
19.0
8.7
14.6
10.2
13.8
16.8
7.4
15.3
11.5
17.0
26.3
13.2
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: 18.2
Proposal: 18.6
(1) Calendar year. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of AGI (married)
and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Single Tax Units
Percent of Tax Units 4
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
5.8
0.8
0.1
1.4
3.2
6.4
15.9
4.3
0.0
0.0
0.0
0.0
0.0
0.0
0.3
5.8
17.5
34.7
41.6
100.0
0
0
1
3
4
1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.5
5.3
12.5
20.4
60.2
100.0
0.0
0.0
0.0
0.0
0.0
0.0
7.4
11.9
18.1
22.0
28.7
23.0
0.0
0.1
20.5
52.5
48.9
9.9
18.4
26.5
30.1
46.1
0.0
0.0
0.1
-0.1
-0.2
40.5
50.5
-201.3
152.0
237.9
7
19
-98
369
6,589
0.0
0.1
-0.2
0.1
0.3
0.0
0.0
0.0
0.0
0.0
15.5
10.9
14.6
19.1
9.1
0.0
0.0
-0.1
0.0
0.1
25.3
26.9
27.7
34.6
38.3
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
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)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
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
617
2,367
6,204
12,288
43,536
10,073
7,763
17,603
28,058
43,545
108,443
33,804
7.4
11.9
18.1
22.0
28.7
23.0
4.7
10.2
15.9
21.3
48.2
100.0
5.7
11.7
16.9
21.6
44.7
100.0
1.5
5.3
12.5
20.4
60.2
100.0
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
21,282
31,989
56,672
366,415
1,998,766
62,755
87,043
147,876
694,216
3,244,340
25.3
26.9
27.7
34.6
38.1
14.1
9.3
12.1
12.7
5.5
13.6
8.9
11.4
10.8
4.4
15.5
10.9
14.7
19.1
9.1
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).
(1) Calendar year. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of
AGI (married) and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units 4
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
14.2
4.3
0.0
1.9
4.0
8.3
16.8
8.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.5
-2.3
-10.9
113.8
100.0
0
0
2
6
-52
-14
0.0
0.0
0.0
0.0
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.7
5.7
15.3
76.9
100.0
0.0
0.0
0.0
0.0
0.0
0.0
3.1
10.7
15.7
20.2
27.6
24.3
0.7
11.0
36.9
60.8
50.3
12.6
18.4
21.9
26.8
46.3
0.0
0.0
0.2
0.0
-0.2
-12.5
-1.2
169.8
-42.2
-115.4
12
2
-371
354
9,591
0.0
0.0
-0.4
0.1
0.4
0.0
0.0
-0.1
0.0
0.1
15.5
12.4
18.9
30.1
15.0
0.0
0.0
-0.1
0.0
0.1
23.8
25.1
27.1
31.9
34.9
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
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)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
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
446
3,580
9,383
19,201
77,857
30,683
14,080
29,825
50,289
75,821
203,985
95,337
3.1
10.7
15.7
20.2
27.6
24.4
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.5
64.9
100.0
0.2
1.7
5.7
15.3
77.0
100.0
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
32,918
48,281
91,873
557,417
2,742,932
105,393
143,809
245,850
1,191,047
5,147,445
23.8
25.1
27.2
31.9
34.8
15.9
12.0
17.0
23.0
10.5
16.0
11.9
16.4
20.7
9.0
15.5
12.4
19.0
30.1
14.9
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. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of
AGI (married) and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Head of Household Tax Units
Percent of Tax Units 4
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
4.2
0.2
0.0
0.3
1.6
4.6
11.0
1.5
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.4
2.3
10.9
86.3
100.0
0
0
0
3
60
4
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
-3.6
13.0
27.3
27.8
35.5
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-5.7
9.4
17.7
21.6
26.6
16.2
0.0
2.2
18.0
49.8
36.7
6.9
11.3
25.2
35.7
60.3
0.0
0.0
0.0
-0.1
-0.2
9.0
9.9
15.4
52.0
34.7
10
37
78
1,366
10,341
0.0
0.1
0.1
0.3
0.4
0.0
0.0
0.0
0.0
0.0
13.5
5.5
7.3
9.2
4.3
0.0
0.0
0.0
0.1
0.2
24.7
25.4
25.2
32.5
35.4
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
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)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
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
-765
2,877
8,877
16,627
47,330
6,757
14,255
27,740
41,398
60,254
131,191
35,003
-5.7
9.4
17.7
21.6
26.5
16.2
10.3
22.4
25.0
20.8
21.6
100.0
13.0
24.2
24.6
19.5
19.0
100.0
-3.6
13.0
27.3
27.8
35.4
100.0
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
27,807
39,277
70,004
460,729
2,450,412
84,956
115,616
208,414
962,870
4,500,091
24.7
25.4
25.1
32.4
35.3
8.9
3.5
4.7
4.6
2.0
8.0
3.1
4.2
3.7
1.5
13.5
5.5
7.3
9.2
4.3
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. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of
AGI (married) and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
14.6
2.5
0.0
0.5
2.8
5.9
14.3
4.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.3
-2.1
-6.8
109.1
100.0
0
0
1
5
-88
-14
0.0
0.0
0.0
0.0
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
-0.9
3.3
10.6
20.4
66.4
100.0
0.0
0.0
0.0
0.0
0.0
0.0
-6.4
10.2
18.2
22.2
28.7
23.5
1.5
15.5
36.5
72.8
53.3
10.8
16.9
19.8
20.2
45.1
0.0
0.0
0.2
0.0
-0.2
-6.4
5.5
132.3
-22.2
-67.7
10
-18
-564
397
12,556
0.0
0.0
-0.5
0.1
0.4
0.0
0.0
-0.1
0.0
0.1
15.8
10.5
16.1
24.0
11.6
0.0
0.0
-0.1
0.0
0.1
25.1
26.1
28.2
33.8
35.9
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
-936
3,539
11,329
22,938
87,962
22,395
15,659
31,133
50,969
80,203
218,101
73,024
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
39,466
58,557
113,535
706,373
3,519,421
118,029
165,989
286,820
1,382,081
6,320,273
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-6.4
10.2
18.2
22.2
28.7
23.5
3.2
7.7
13.6
21.6
54.3
100.0
4.4
9.0
14.6
21.9
50.5
100.0
-0.9
3.3
10.6
20.4
66.4
100.0
25.1
26.1
28.4
33.8
35.8
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.5
14.4
6.3
15.8
10.5
16.2
24.0
11.5
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).
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) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of AGI (married)
and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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 T09-0305
Administration's FY2010 Budget Proposals
Individual Income Tax Measures Affecting High Income Taxpayers
Baseline: Current Law
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
11.1
2.1
0.1
2.2
5.3
15.6
30.2
10.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
1.9
10.0
87.3
100.0
0
0
1
8
72
15
0.0
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.3
1.8
3.7
10.7
83.5
100.0
0.0
0.0
0.0
0.0
0.0
0.0
2.6
4.4
6.9
12.8
26.9
20.1
0.4
3.5
27.7
41.7
39.8
24.2
32.8
34.6
40.9
55.4
0.0
0.0
0.0
-0.1
-0.2
12.5
11.9
-20.9
83.8
80.7
24
40
-69
891
8,783
0.1
0.1
-0.1
0.2
0.4
0.0
0.0
0.0
0.0
0.1
10.3
9.8
20.8
42.6
21.4
0.0
0.0
0.0
0.1
0.1
18.7
21.7
25.9
32.7
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
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
283
998
2,842
8,996
68,955
15,182
10,616
21,529
38,252
61,242
188,093
60,555
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
19,701
33,190
69,443
455,317
2,337,443
85,744
119,913
198,438
941,644
4,182,648
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
2.6
4.4
6.9
12.8
26.8
20.1
2.4
8.0
10.6
16.7
62.4
100.0
2.9
9.6
12.4
18.2
57.1
100.0
0.3
1.8
3.7
10.7
83.5
100.0
18.7
21.7
25.9
32.6
35.9
11.1
9.0
16.1
26.2
12.0
11.3
8.8
15.0
22.1
9.6
10.3
9.8
20.9
42.6
21.4
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. Baseline is current law. Proposal would: (a) 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; (b) set the thresholds for the personal exemption phaseout and limitation on itemized deductions to $250,000 of AGI (married)
and $200,000 (single), indexed for inflation after 2009; (c) 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.
(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.