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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
13.8
2.1
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
610
90
0.0
0.0
0.0
0.0
0.2
0.1
4.6
10.3
16.3
19.2
25.1
20.8
0.0
0.0
0.1
0.1
0.0
0.1
0.9
46.2
84.3
95.2
0.0
0.0
-0.2
-0.7
-0.9
0.0
0.2
20.7
79.1
42.6
0
6
632
9,450
50,479
0.0
0.0
0.2
0.5
0.6
21.7
22.7
24.8
29.2
31.8
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: 5.1
Proposal: 4.9
(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 increase regular income tax
liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if positive, between the taxpayer's statutory
marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local
taxes, medical expenses, and miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory
marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Detail 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
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
13.8
2.1
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
610
90
0.0
0.0
0.0
0.0
0.9
0.6
0.0
0.0
-0.1
-0.1
0.2
0.0
0.8
4.2
10.9
18.2
65.8
100.0
0.0
0.0
0.0
0.0
0.2
0.1
4.6
10.3
16.3
19.2
25.1
20.8
0.0
0.0
0.1
0.1
0.0
0.1
0.9
46.2
84.3
95.2
0.0
0.0
-0.2
-0.7
-0.9
0.0
0.2
20.7
79.1
42.6
0
6
632
9,450
50,479
0.0
0.0
0.7
1.8
1.9
-0.1
-0.1
0.0
0.3
0.2
14.1
10.3
16.0
25.4
12.8
0.0
0.0
0.2
0.5
0.6
21.7
22.7
24.8
29.2
31.8
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, 2012 1
4
Tax Units
2,3
Cash Income Percentile
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 After5
Tax Income
(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: 4.9
(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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if
positive, between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical
expenses, and miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail 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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
10.8
2.1
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
475
90
0.0
0.0
0.0
0.0
0.8
0.6
0.0
0.0
-0.1
-0.1
0.2
0.0
0.2
2.9
8.7
17.4
70.7
100.0
0.0
0.0
0.0
0.0
0.2
0.1
1.1
8.5
14.9
18.7
25.0
20.8
0.0
0.0
0.0
0.1
0.0
0.0
0.6
33.8
80.9
93.1
0.0
0.0
-0.2
-0.7
-0.9
0.0
0.3
19.7
80.0
43.7
0
5
472
7,923
43,668
0.0
0.0
0.7
1.8
1.9
-0.1
-0.1
0.0
0.3
0.2
15.4
11.6
17.3
26.4
13.3
0.0
0.0
0.2
0.5
0.6
21.8
23.0
24.6
28.9
31.5
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
4
Tax Units
2,3
Cash Income Percentile
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 After5
Tax Income
(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
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: 4.9
(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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if
positive, between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical
expenses, and miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
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
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
0.0
0.0
0.0
0.0
0.0
0.0
5.3
0.7
0.0
0.0
0.0
0.0
-0.2
-0.1
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
193
27
0.0
0.0
0.0
0.0
0.5
0.3
0.0
0.0
0.0
-0.1
0.1
0.0
1.6
5.2
12.7
21.1
59.2
100.0
0.0
0.0
0.0
0.0
0.1
0.1
7.1
10.7
16.8
20.7
25.7
20.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
13.6
74.4
91.6
0.0
0.0
-0.1
-0.6
-0.9
0.0
0.0
10.9
89.1
50.7
0
0
113
4,570
29,647
0.0
0.0
0.2
1.4
1.7
-0.1
0.0
0.0
0.2
0.1
15.7
10.9
14.1
18.6
9.0
0.0
0.0
0.1
0.4
0.6
23.3
24.3
24.3
30.7
34.3
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
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if positive,
between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical expenses, and
miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
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
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
0.0
0.0
0.0
0.0
0.0
0.0
13.7
4.1
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
624
189
0.0
0.0
0.0
0.0
0.9
0.7
0.0
0.0
0.0
-0.1
0.2
0.0
0.1
1.4
5.5
15.1
77.9
100.0
0.0
0.0
0.0
0.0
0.2
0.2
0.9
7.8
13.3
17.6
24.8
21.6
0.0
0.0
0.0
0.1
0.0
0.0
0.9
42.7
82.8
93.5
0.0
0.0
-0.3
-0.7
-0.9
0.0
0.3
21.6
78.2
41.3
0
7
643
8,935
46,861
0.0
0.0
0.8
1.8
2.0
-0.1
-0.1
0.0
0.3
0.2
15.5
12.6
19.5
30.3
15.0
0.0
0.0
0.2
0.5
0.6
21.1
22.5
24.7
28.5
30.9
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
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if positive,
between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical expenses, and
miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20121
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
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
0.0
0.0
0.0
0.0
0.0
0.0
6.6
0.3
0.0
0.0
0.0
0.0
-0.2
0.0
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
219
11
0.0
0.0
0.0
0.0
0.5
0.2
0.0
0.0
-0.1
-0.1
0.1
0.0
-5.3
9.9
27.5
29.5
38.3
100.0
0.0
0.0
0.0
0.0
0.1
0.0
-7.0
6.1
15.1
19.5
24.4
13.8
0.0
0.0
0.0
0.0
0.0
0.0
0.1
30.3
87.5
94.5
0.0
0.0
-0.2
-0.6
-0.7
0.0
0.0
20.9
79.1
38.0
0
0
329
6,503
35,486
0.0
0.0
0.5
1.6
1.7
0.0
0.0
0.0
0.1
0.1
14.7
5.9
8.0
9.7
4.5
0.0
0.0
0.1
0.5
0.5
22.8
23.3
23.3
29.1
31.5
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if positive,
between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical expenses, and
miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Tax Units with Children
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
17.1
2.9
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
741
125
0.0
0.0
0.0
0.0
1.0
0.7
0.0
0.0
-0.1
-0.1
0.2
0.0
-1.4
2.3
10.1
20.1
68.7
100.0
0.0
0.0
0.0
0.0
0.2
0.1
-8.7
6.1
15.2
19.1
25.8
20.4
0.0
0.0
0.0
0.0
0.0
0.0
2.3
65.7
91.5
97.0
0.0
0.0
-0.4
-0.8
-0.9
0.0
0.6
28.6
70.8
33.8
0
19
1,124
11,654
57,710
0.0
0.0
1.1
1.9
1.9
-0.1
-0.1
0.1
0.3
0.1
16.1
10.8
17.1
24.6
11.8
0.0
0.0
0.3
0.6
0.6
22.3
23.3
26.1
30.2
31.9
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
4
Tax Units
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(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
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if
positive, between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical
expenses, and miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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 T09-0315
Administration's FY2010 Budget Proposals
Limit Value of Itemized Deductions to 28 Percent
Against Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Elderly Tax Units
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
11.0
2.0
0.0
0.0
0.0
0.0
-0.3
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
563
104
0.0
0.0
0.0
0.0
1.0
0.8
0.0
0.0
0.0
-0.1
0.1
0.0
0.3
1.8
3.5
10.6
83.7
100.0
0.0
0.0
0.0
0.0
0.2
0.1
2.4
3.8
5.8
11.0
23.2
17.3
0.0
0.0
0.0
0.2
0.0
0.0
0.0
21.5
73.8
92.5
0.0
0.0
-0.1
-0.7
-1.0
0.0
0.0
8.8
91.2
59.0
0
0
200
6,650
44,006
0.0
0.0
0.3
1.7
2.1
-0.1
-0.1
-0.1
0.4
0.3
10.0
9.5
20.4
43.8
22.2
0.0
0.0
0.1
0.5
0.7
15.6
18.3
21.9
28.9
32.2
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
4
Tax Units
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(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
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
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 increase regular income tax liability before credits by the value of itemized deductions, net of any Pease limitation, multiplied by the difference, if
positive, between the taxpayer's statutory marginal rate and 28 percent. For AMT purposes, AMT liability, if positive, would be increased by the value of itemized deductions excluding those for state and local taxes, medical
expenses, and miscellaneous deductions subject to the 2 percent of AGI floor multiplied by the difference, if positive, between the taxpayer's statutory marginal rate and 28 percent.
(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.