21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012
Summary Table
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
0.4
30.8
58.0
77.1
87.6
94.4
97.7
97.6
88.7
78.4
81.6
67.2
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.4
0.9
1.2
1.2
1.3
1.4
1.6
1.5
0.7
0.2
1.2
1
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
1.5
4.2
5.3
5.5
14.3
12.8
33.4
17.6
3.5
2.0
100.0
0
-65
-217
-354
-461
-678
-958
-1,748
-3,202
-3,605
-4,133
-686
Average Federal Tax Rate
Change (%
Points)
0.0
-0.4
-0.8
-1.0
-1.0
-1.1
-1.1
-1.2
-1.1
-0.5
-0.1
-0.9
5
Under the
Proposal
5.4
4.9
9.9
14.0
16.4
18.4
20.2
22.9
25.6
27.9
33.7
22.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 1.2
Proposal: 2.9
** This table is part of a series of tables showing the distributional effects of moving incrementally from current law to current policy. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Law to Current Policy” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=366
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax
brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012
Detail Table
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.4
30.8
58.0
77.1
87.6
94.4
97.7
97.6
88.7
78.4
81.6
67.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.4
0.9
1.2
1.2
1.3
1.4
1.6
1.5
0.7
0.2
1.2
Share of Total
Federal Tax
Change
0.0
1.5
4.2
5.3
5.5
14.3
12.8
33.4
17.6
3.5
2.0
100.0
Average Federal Tax Change
Dollars
0
-65
-217
-354
-461
-678
-958
-1,748
-3,202
-3,605
-4,133
-686
Percent
0.0
-7.9
-7.8
-6.5
-5.7
-5.4
-5.0
-5.1
-4.1
-1.8
-0.4
-3.9
1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.2
-0.1
-0.3
0.0
0.2
0.7
0.0
Under the
Proposal
0.2
0.7
2.0
3.1
3.7
10.0
9.8
24.9
16.8
7.7
20.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
-0.4
-0.8
-1.0
-1.0
-1.1
-1.1
-1.2
-1.1
-0.5
-0.1
-0.9
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2012
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
16,958
24,305
21,133
16,074
12,909
22,702
14,431
20,606
5,930
1,048
531
157,348
Percent of
Total
10.8
15.5
13.4
10.2
8.2
14.4
9.2
13.1
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,723
15,533
25,808
36,190
46,615
64,099
90,195
141,257
296,062
704,969
3,114,004
76,169
Average
Federal Tax
Burden
(Dollars)
309
827
2,781
5,415
8,116
12,461
19,163
34,059
78,845
200,335
1,053,628
17,653
Average After4
Tax Income
(Dollars)
5,414
14,706
23,026
30,774
38,499
51,639
71,032
107,198
217,217
504,635
2,060,376
58,516
Average
Federal Tax
5
Rate
5.4
5.3
10.8
15.0
17.4
19.4
21.3
24.1
26.6
28.4
33.8
23.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.2
4.6
4.9
5.0
12.1
10.9
24.3
14.7
6.2
13.8
100.0
1.0
3.9
5.3
5.4
5.4
12.7
11.1
24.0
14.0
5.7
11.9
100.0
0.2
0.7
2.1
3.1
3.8
10.2
10.0
25.3
16.8
7.6
20.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 1.2
Proposal: 2.9
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
5.4
4.9
9.9
14.0
16.4
18.4
20.2
22.9
25.6
27.9
33.7
22.3
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.4
45.4
72.4
91.0
96.7
98.0
98.2
96.1
83.4
73.4
75.4
63.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.7
1.3
1.3
1.1
1.3
1.7
1.9
1.2
0.6
0.2
1.2
Share of Total
Federal Tax
Change
0.0
5.1
11.2
9.7
8.7
19.7
14.3
22.0
7.0
1.3
0.8
100.0
Average Federal Tax Change
Dollars
0
-99
-289
-372
-418
-648
-1,143
-1,876
-2,573
-2,766
-3,127
-418
Percent
0.0
-7.1
-7.7
-5.5
-4.4
-4.4
-5.0
-5.1
-3.0
-1.3
-0.3
-4.2
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.2
-0.1
0.0
-0.1
-0.1
-0.2
0.1
0.1
0.5
0.0
0.9
2.9
5.8
7.2
8.3
18.4
11.8
17.9
9.9
4.5
12.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
-0.6
-1.1
-1.0
-0.9
-1.0
-1.3
-1.4
-0.9
-0.4
-0.1
-1.0
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
12,161
14,889
11,204
7,555
6,018
8,766
3,599
3,384
787
138
75
68,932
17.6
21.6
16.3
11.0
8.7
12.7
5.2
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,710
15,384
25,667
36,120
46,555
63,234
89,193
137,406
300,163
697,814
2,972,435
43,878
Average
Federal Tax
Burden
(Dollars)
484
1,400
3,748
6,727
9,623
14,596
22,897
36,982
86,447
220,775
1,090,704
10,064
Average AfterTax Income 4
(Dollars)
5,227
13,984
21,919
29,392
36,932
48,638
66,296
100,424
213,716
477,039
1,881,731
33,814
Average
Federal Tax
Rate 5
8.5
9.1
14.6
18.6
20.7
23.1
25.7
26.9
28.8
31.6
36.7
22.9
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
7.6
9.5
9.0
9.3
18.3
10.6
15.4
7.8
3.2
7.3
100.0
2.7
8.9
10.5
9.5
9.5
18.3
10.2
14.6
7.2
2.8
6.0
100.0
0.9
3.0
6.1
7.3
8.4
18.4
11.9
18.0
9.8
4.4
11.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
8.5
8.5
13.5
17.6
19.8
22.1
24.4
25.6
27.9
31.2
36.6
22.0
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
5.5
36.4
52.0
71.2
90.9
97.8
98.5
90.8
79.6
82.9
76.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.4
0.9
1.2
1.3
1.2
1.6
1.6
0.7
0.2
1.2
Share of Total
Federal Tax
Change
0.0
0.0
0.7
1.8
2.8
10.5
11.9
40.7
24.1
4.8
2.7
100.0
Average Federal Tax Change
Dollars
0
-4
-102
-276
-479
-735
-897
-1,743
-3,376
-3,771
-4,366
-1,129
Percent
0.0
-0.8
-5.6
-7.4
-8.0
-6.9
-5.1
-5.2
-4.4
-1.9
-0.4
-3.7
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.1
-0.5
-0.1
0.2
0.8
0.0
0.0
0.1
0.5
0.8
1.3
5.4
8.5
28.6
20.4
9.4
24.7
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
-0.4
-0.8
-1.0
-1.1
-1.0
-1.2
-1.1
-0.5
-0.1
-0.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,172
4,097
4,842
4,391
4,095
9,883
9,149
16,193
4,941
876
435
61,357
3.5
6.7
7.9
7.2
6.7
16.1
14.9
26.4
8.1
1.4
0.7
100.0
Average
Income
(Dollars)
4,766
16,031
25,959
36,302
46,760
65,241
90,792
142,545
295,420
706,519
3,075,014
126,020
Average
Federal Tax
Burden
(Dollars)
251
551
1,817
3,720
6,015
10,600
17,560
33,529
77,696
197,349
1,025,038
30,417
Average AfterTax Income 4
(Dollars)
4,516
15,480
24,142
32,583
40,745
54,641
73,232
109,016
217,724
509,170
2,049,976
95,603
Average
Federal Tax
Rate 5
5.3
3.4
7.0
10.3
12.9
16.3
19.3
23.5
26.3
27.9
33.3
24.1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.9
1.6
2.1
2.5
8.3
10.7
29.9
18.9
8.0
17.3
100.0
0.2
1.1
2.0
2.4
2.8
9.2
11.4
30.1
18.3
7.6
15.2
100.0
0.0
0.1
0.5
0.9
1.3
5.6
8.6
29.1
20.6
9.3
23.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
5.3
3.4
6.6
9.5
11.8
15.1
18.4
22.3
25.2
27.4
33.2
23.2
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
5.3
43.5
77.0
91.3
95.1
96.4
89.7
55.8
68.4
76.6
53.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.6
1.3
1.4
1.2
1.2
1.4
0.6
0.6
0.2
1.0
Share of Total
Federal Tax
Change
0.0
0.3
8.7
18.3
15.7
25.1
13.6
14.3
2.5
0.9
0.5
100.0
Average Federal Tax Change
Dollars
Percent
0
-6
-153
-406
-536
-587
-819
-1,360
-1,369
-3,113
-3,720
-340
0.0
0.8
-11.5
-8.9
-7.0
-4.9
-4.2
-4.2
-1.9
-1.7
-0.4
-5.2
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.3
-0.4
-0.2
0.1
0.2
0.2
0.2
0.1
0.3
0.0
-0.8
-2.4
3.7
10.2
11.4
26.5
16.8
17.6
7.1
2.8
7.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
-0.6
-1.1
-1.2
-0.9
-0.9
-1.0
-0.5
-0.5
-0.1
-0.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,483
5,029
4,757
3,767
2,449
3,559
1,389
877
150
24
11
24,547
10.1
20.5
19.4
15.4
10.0
14.5
5.7
3.6
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,647
15,579
25,971
36,157
46,569
63,082
89,214
132,993
294,130
686,382
2,985,055
41,760
Average
Federal Tax
Burden
(Dollars)
-514
-740
1,333
4,563
7,662
12,035
19,393
32,097
74,049
183,209
1,020,067
6,594
Average AfterTax Income 4
(Dollars)
7,161
16,319
24,639
31,594
38,908
51,047
69,820
100,896
220,081
503,173
1,964,988
35,166
Average
Federal Tax
Rate 5
-7.7
-4.8
5.1
12.6
16.5
19.1
21.7
24.1
25.2
26.7
34.2
15.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
7.6
12.1
13.3
11.1
21.9
12.1
11.4
4.3
1.6
3.2
100.0
2.1
9.5
13.6
13.8
11.0
21.1
11.2
10.3
3.8
1.4
2.5
100.0
-0.8
-2.3
3.9
10.6
11.6
26.5
16.6
17.4
6.9
2.7
6.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
-7.7
-4.8
4.5
11.5
15.3
18.2
20.8
23.1
24.7
26.2
34.1
15.0
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
2.3
32.7
67.5
86.8
93.6
97.6
97.7
87.8
83.7
86.9
67.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.4
1.1
1.4
1.3
1.2
1.5
1.5
0.8
0.2
1.1
Share of Total
Federal Tax
Change
0.0
0.0
1.5
4.0
5.0
12.5
12.2
36.9
21.2
4.5
2.3
100.0
Average Federal Tax Change
Dollars
Percent
0
-3
-107
-336
-533
-692
-861
-1,631
-3,176
-4,190
-4,679
-839
0.0
0.2
-12.6
-8.0
-7.3
-5.9
-4.7
-4.9
-4.1
-2.0
-0.4
-3.8
1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.1
-0.3
-0.1
0.2
0.7
0.0
Under the
Proposal
-0.2
-0.7
0.4
1.8
2.5
7.9
9.9
28.6
19.9
8.7
21.2
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
-0.4
-0.9
-1.1
-1.1
-1.0
-1.2
-1.1
-0.6
-0.2
-0.9
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2012
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,968
5,639
5,683
4,891
3,849
7,425
5,841
9,319
2,750
441
206
49,155
6.0
11.5
11.6
10.0
7.8
15.1
11.9
19.0
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
6,252
15,769
25,918
36,161
46,701
64,368
90,740
142,137
293,742
705,334
3,105,769
95,419
Average
Federal Tax
Burden
(Dollars)
-706
-1,288
847
4,187
7,354
11,770
18,473
33,633
78,458
209,183
1,077,916
22,061
Average After4
Tax Income
(Dollars)
6,958
17,057
25,071
31,974
39,346
52,598
72,267
108,505
215,284
496,151
2,027,853
73,359
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-11.3
-8.2
3.3
11.6
15.8
18.3
20.4
23.7
26.7
29.7
34.7
23.1
0.4
1.9
3.1
3.8
3.8
10.2
11.3
28.2
17.2
6.6
13.7
100.0
0.6
2.7
4.0
4.3
4.2
10.8
11.7
28.0
16.4
6.1
11.6
100.0
-0.2
-0.7
0.4
1.9
2.6
8.1
10.0
28.9
19.9
8.5
20.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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 plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
-11.3
-8.2
2.9
10.7
14.6
17.2
19.4
22.5
25.6
29.1
34.6
22.2
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0138
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Extend 10, 25, and 28 Percent Tax Brackets
Distribution of Federal Tax Change by Cash Income Level, 2012
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
13.3
37.1
54.0
63.7
87.5
96.4
97.3
88.2
64.7
71.2
53.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.2
0.5
0.6
0.7
1.1
1.2
1.5
1.3
0.5
0.2
0.9
Share of Total
Federal Tax
Change
0.0
1.0
3.6
3.8
3.9
16.0
13.9
31.1
20.1
3.9
2.8
100.0
Average Federal Tax Change
Dollars
0
-25
-115
-212
-282
-600
-914
-1,720
-2,946
-2,641
-3,454
-541
Percent
0.0
-5.8
-8.8
-8.7
-7.3
-7.8
-6.6
-5.8
-3.7
-1.3
-0.3
-3.6
1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.1
-0.3
-0.2
-0.4
0.0
0.2
1.0
0.0
Under the
Proposal
0.1
0.6
1.4
1.5
1.8
7.0
7.3
18.9
19.2
10.7
31.4
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
-0.2
-0.5
-0.6
-0.6
-0.9
-1.0
-1.2
-1.0
-0.4
-0.1
-0.7
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2012
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,305
6,471
5,084
2,999
2,259
4,405
2,504
2,986
1,128
245
132
30,543
7.6
21.2
16.7
9.8
7.4
14.4
8.2
9.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,366
15,655
25,560
36,054
46,537
64,489
89,136
141,589
304,121
709,954
3,095,895
75,737
Average
Federal Tax
Burden
(Dollars)
201
432
1,313
2,440
3,880
7,699
13,944
29,909
78,837
197,397
1,062,439
15,130
Average After4
Tax Income
(Dollars)
6,166
15,222
24,247
33,614
42,657
56,791
75,191
111,681
225,285
512,557
2,033,456
60,607
Average
Federal Tax
5
Rate
3.2
2.8
5.1
6.8
8.3
11.9
15.6
21.1
25.9
27.8
34.3
20.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.6
4.7
4.5
12.3
9.7
18.3
14.8
7.5
17.7
100.0
0.8
5.3
6.7
5.5
5.2
13.5
10.2
18.0
13.7
6.8
14.5
100.0
0.1
0.6
1.4
1.6
1.9
7.3
7.6
19.3
19.2
10.5
30.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
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 plus a permanent AMT patch at 2009 levels, indexed for inflation. Policy is extension of the 10, 25, and 28 percent tax brackets.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
Under the
Proposal
3.2
2.6
4.7
6.2
7.7
11.0
14.6
19.9
25.0
27.4
34.2
19.3