21-Jul-10 PRELIMINARY RESULTS
1
http://www.taxpolicycenter.org
Cash Income
Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent of Tax Units
With Tax Cut
1.2
5.6
11.8
24.1
49.4
15.3
4
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income
5
0.0
0.0
0.1
0.1
0.6
0.3
Share of Total
Federal Tax
Change
0.1
1.1
2.7
6.4
89.6
100.0
Average
Federal Tax
Change ($)
-1
-10
-27
-78
-1,239
-205
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
-0.1
-0.1
-0.4
-0.3
Proposal
4.6
10.3
16.5
19.5
26.0
21.4
6
Under the
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
36.5
51.3
69.8
87.6
94.5
0.0
0.0
0.0
0.0
0.0
0.2
0.2
0.4
1.3
2.0
5.9
5.9
16.0
61.8
39.9
-162
-333
-1,107
-16,738
-107,281
-0.1
-0.2
-0.3
-0.9
-1.3
22.0
23.2
25.4
30.9
33.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.8 Proposal: 3.8
** 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; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax Credit (EITC), the Child and
Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile, 2012
1
Detail Table
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
1.2
5.6
11.8
24.1
49.4
15.3
0.0
0.0
0.0
0.0
0.0
0.0
36.5
51.3
69.8
87.6
94.5
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.1
0.6
0.3
0.1
1.1
2.7
6.4
89.6
100.0
0.2
0.2
0.4
1.3
2.0
5.9
5.9
16.0
61.8
39.9
Average Federal Tax Change
Dollars Percent
-1
-10
-27
-78
-1,239
-205
-0.2
-0.3
-0.3
-0.5
-1.7
-1.2
-162
-333
-1,107
-16,738
-107,281
-0.5
-0.7
-1.2
-2.9
-3.7
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.1
-0.3
0.0
0.8
4.1
10.7
18.0
66.3
100.0
0.1
0.1
0.0
-0.4
-0.3
13.9
10.2
16.0
26.2
13.1
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.1
-0.4
-0.3
4.6
10.3
16.5
19.5
26.0
21.4
-0.1
-0.2
-0.3
-0.9
-1.3
22.0
23.2
25.4
30.9
33.5
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
38,450
34,947
31,868
26,646
23,298
157,348
11,720
5,734
4,655
1,190
120
Tax Units
(thousands)
4
Percent of
Total
24.4
22.2
20.3
16.9
14.8
100.0
7.5
3.6
3.0
0.8
0.1
Average
Income
(Dollars)
11,600
28,852
52,224
88,978
280,229
76,169
138,385
196,549
345,574
1,825,188
8,367,274
Average
Federal Tax
Burden
(Dollars)
537
2,980
8,645
17,392
74,052
16,477
30,537
45,830
88,992
580,282
2,910,584
Average After-
Tax Income
5
(Dollars)
11,063
25,872
43,579
71,585
206,177
59,692
107,848
150,719
256,582
1,244,906
5,456,690
Average
Federal Tax
Rate
6
4.6
10.3
16.6
19.6
26.4
21.6
22.1
23.3
25.8
31.8
34.8
Share of Pre-
Tax Income
Percent of
Total
3.7
8.4
13.9
19.8
54.5
100.0
13.5
9.4
13.4
18.1
8.4
Share of Post-
Tax Income
Percent of
Total
4.5
9.6
14.8
20.3
51.1
100.0
13.5
9.2
12.7
15.8
7.0
Share of
Federal Taxes
Percent of
Total
0.8
4.0
10.6
17.9
66.6
100.0
13.8
10.1
16.0
26.6
13.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.8 Proposal: 3.8
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $19,356, 40%
$37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
1
Detail Table
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.4
3.8
9.5
20.5
45.6
15.3
0.0
0.0
0.0
0.0
0.0
0.0
32.7
47.1
66.3
86.1
94.2
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.1
0.6
0.3
0.0
0.5
1.8
5.2
92.5
100.0
0.1
0.2
0.4
1.3
1.9
5.6
5.8
16.5
64.6
41.3
Average Federal Tax Change
Dollars Percent
0
-5
-19
-56
-995
-205
-0.1
-0.2
-0.3
-0.4
-1.6
-1.2
-119
-250
-896
-14,478
-93,442
-0.5
-0.6
-1.2
-2.9
-3.7
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.2
-0.3
0.0
0.1
2.8
8.5
17.2
71.2
100.0
0.1
0.1
0.0
-0.5
-0.3
15.2
11.5
17.2
27.2
13.6
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
-0.1
-0.4
-0.3
1.0
8.5
15.1
18.9
25.8
21.4
-0.1
-0.2
-0.3
-0.9
-1.3
22.1
23.3
25.2
30.6
33.2
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
31,706
32,349
31,237
29,980
29,936
157,348
15,019
7,540
5,940
1,436
142
Tax Units
(thousands)
4
Percent of
Total
20.2
20.6
19.9
19.1
19.0
100.0
9.6
4.8
3.8
0.9
0.1
Average
Income
(Dollars)
10,935
26,208
46,322
77,565
235,547
76,169
117,658
167,170
294,212
1,584,726
7,360,192
Average
Federal Tax
Burden
(Dollars)
114
2,226
7,019
14,746
61,866
16,477
26,058
39,249
75,166
500,047
2,539,525
Average After-
Tax Income
5
(Dollars)
10,821
23,982
39,303
62,819
173,682
59,692
91,599
127,921
219,046
1,084,679
4,820,668
Average
Federal Tax
Rate
6
1.0
8.5
15.2
19.0
26.3
21.6
22.2
23.5
25.6
31.6
34.5
Share of Pre-
Tax Income
Percent of
Total
2.9
7.1
12.1
19.4
58.8
100.0
14.7
10.5
14.6
19.0
8.7
Share of Post-
Tax Income
Percent of
Total
3.7
8.3
13.1
20.1
55.4
100.0
14.7
10.3
13.9
16.6
7.3
Share of
Federal Taxes
Percent of
Total
0.1
2.8
8.5
17.1
71.4
100.0
15.1
11.4
17.2
27.7
14.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 3.8 Proposal: 3.8
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
1
Detail Table - Single Tax Units
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.7
4.6
10.0
17.0
39.9
11.6
0.0
0.0
0.0
0.0
0.0
0.0
28.1
41.8
61.6
84.2
92.4
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.1
0.1
0.6
0.3
0.1
1.3
4.2
7.1
87.4
100.0
0.2
0.3
0.5
1.5
2.1
6.8
8.1
20.2
52.3
30.4
Average Federal Tax Change
Dollars Percent
0
-6
-21
-44
-654
-104
0.0
-0.3
-0.4
-0.4
-1.6
-1.1
-97
-244
-807
-10,417
-69,036
-0.5
-0.8
-1.5
-2.9
-3.5
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.2
-0.3
0.0
1.6
5.1
12.5
20.7
60.0
100.0
0.1
0.0
-0.1
-0.4
-0.2
15.6
10.8
14.5
19.2
9.1
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
-0.1
-0.1
-0.4
-0.2
7.1
10.7
17.1
21.0
26.9
21.6
-0.1
-0.2
-0.4
-1.0
-1.3
23.9
25.0
25.7
32.7
35.9
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
16,972
15,474
14,005
11,543
9,596
68,932
5,066
2,373
1,795
361
32
Tax Units
(thousands)
4
Percent of
Total
24.6
22.5
20.3
16.8
13.9
100.0
7.4
3.4
2.6
0.5
0.1
Average
Income
(Dollars)
8,380
19,970
34,261
55,833
151,979
43,878
84,037
119,032
204,548
1,060,631
5,243,107
Average
Federal Tax
Burden
(Dollars)
595
2,142
5,867
11,768
41,482
9,576
20,144
29,996
53,420
357,077
1,952,143
Average After-
Tax Income
5
(Dollars)
7,785
17,828
28,394
44,065
110,496
34,301
63,893
89,036
151,128
703,554
3,290,964
Average
Federal Tax
Rate
6
7.1
10.7
17.1
21.1
27.3
21.8
24.0
25.2
26.1
33.7
37.2
Share of Pre-
Tax Income
Percent of
Total
4.7
10.2
15.9
21.3
48.2
100.0
14.1
9.3
12.1
12.7
5.5
Share of Post-
Tax Income
Percent of
Total
5.6
11.7
16.8
21.5
44.8
100.0
13.7
8.9
11.5
10.7
4.4
Share of
Federal Taxes
Percent of
Total
1.5
5.0
12.5
20.6
60.3
100.0
15.5
10.8
14.5
19.5
9.4
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; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
1
Detail Table - Married Tax Units Filing Jointly
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.0
4.9
11.5
25.2
50.0
24.2
0.0
0.0
0.0
0.0
0.0
0.0
36.9
50.6
69.5
87.2
95.2
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.1
0.6
0.4
0.0
0.3
1.1
4.6
94.0
100.0
0.1
0.2
0.4
1.3
1.9
5.2
5.2
15.8
67.9
43.8
Average Federal Tax Change
Dollars Percent
0
-7
-22
-71
-1,176
-379
0.0
-0.3
-0.3
-0.4
-1.6
-1.3
-137
-248
-942
-15,563
-99,537
-0.5
-0.6
-1.1
-2.9
-3.7
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.1
-0.2
0.0
0.1
1.4
5.4
14.9
78.2
100.0
0.1
0.1
0.1
-0.5
-0.4
15.3
12.4
19.3
31.2
15.4
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
-0.1
-0.4
-0.3
0.8
7.9
13.5
17.8
25.5
22.2
-0.1
-0.1
-0.3
-0.9
-1.3
21.3
22.8
25.2
30.1
32.7
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
6,622
8,956
11,470
15,032
18,609
61,357
8,860
4,843
3,890
1,015
102
Tax Units
(thousands)
4
Percent of
Total
10.8
14.6
18.7
24.5
30.3
100.0
14.4
7.9
6.3
1.7
0.2
Average
Income
(Dollars)
14,526
33,405
59,671
95,023
281,842
126,020
138,312
192,091
337,723
1,748,464
7,890,377
Average
Federal Tax
Burden
(Dollars)
118
2,631
8,100
17,016
73,140
28,302
29,646
44,066
85,881
542,589
2,678,518
Average After-
Tax Income
5
(Dollars)
14,408
30,774
51,571
78,007
208,702
97,718
108,666
148,025
251,842
1,205,875
5,211,859
Average
Federal Tax
Rate
6
0.8
7.9
13.6
17.9
26.0
22.5
21.4
22.9
25.4
31.0
34.0
Share of Pre-
Tax Income
Percent of
Total
1.2
3.9
8.9
18.5
67.8
100.0
15.9
12.0
17.0
23.0
10.5
Share of Post-
Tax Income
Percent of
Total
1.6
4.6
9.9
19.6
64.8
100.0
16.1
12.0
16.3
20.4
8.9
Share of
Federal Taxes
Percent of
Total
0.0
1.4
5.4
14.7
78.4
100.0
15.1
12.3
19.2
31.7
15.8
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; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
1
Detail Table - Head of Household Tax Units
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.0
0.9
4.8
11.4
26.8
3.9
0.0
0.0
0.0
0.0
0.0
0.0
18.5
32.8
47.5
79.4
88.4
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.4
0.1
0.0
0.5
3.7
9.0
86.7
100.0
0.1
0.3
0.4
1.3
1.9
9.0
8.7
16.5
52.6
31.5
Average Federal Tax Change
Dollars Percent
0
-1
-6
-26
-564
-33
0.0
0.0
-0.1
-0.2
-1.3
-0.6
-90
-302
-771
-12,860
-87,379
-0.4
-0.8
-1.2
-2.8
-3.6
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.1
0.1
0.1
-0.3
0.0
-5.3
9.6
27.5
29.5
38.6
100.0
0.0
0.0
-0.1
-0.2
-0.2
14.5
5.9
8.0
10.2
4.8
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
-0.3
-0.1
-7.2
6.0
15.3
19.7
24.8
13.9
-0.1
-0.2
-0.3
-0.9
-1.3
22.8
23.3
23.7
30.9
33.5
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
7,840
7,497
5,095
2,777
1,242
24,547
805
232
173
33
3
Tax Units
(thousands)
4
Percent of
Total
31.9
30.5
20.8
11.3
5.1
100.0
3.3
0.9
0.7
0.1
0.0
Average
Income
(Dollars)
13,490
30,617
50,275
76,881
178,521
41,760
112,763
154,893
278,418
1,423,600
6,950,503
Average
Federal Tax
Burden
(Dollars)
-966
1,831
7,686
15,151
44,833
5,832
25,824
36,390
66,766
452,295
2,414,099
Average After-
Tax Income
5
(Dollars)
14,455
28,786
42,589
61,730
133,688
35,928
86,938
118,503
211,652
971,304
4,536,405
Average
Federal Tax
Rate
6
-7.2
6.0
15.3
19.7
25.1
14.0
22.9
23.5
24.0
31.8
34.7
Share of Pre-
Tax Income
Percent of
Total
10.3
22.4
25.0
20.8
21.6
100.0
8.9
3.5
4.7
4.6
2.0
Share of Post-
Tax Income
Percent of
Total
12.9
24.5
24.6
19.4
18.8
100.0
7.9
3.1
4.1
3.6
1.5
Share of
Federal Taxes
Percent of
Total
-5.3
9.6
27.4
29.4
38.9
100.0
14.5
5.9
8.1
10.4
4.9
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; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
1
Detail Table - Tax Units with Children
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.0
1.4
8.5
19.0
47.7
14.0
0.0
0.0
0.0
0.0
0.0
0.0
35.2
51.1
69.3
86.9
94.4
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.1
0.5
0.3
0.0
0.1
1.6
4.7
93.6
100.0
0.1
0.1
0.3
1.2
1.9
4.7
4.7
14.8
69.4
47.1
Average Federal Tax Change
Dollars Percent
0
-1
-14
-44
-1,044
-189
0.0
-0.1
-0.2
-0.2
-1.3
-0.9
-99
-221
-875
-17,198
-121,037
-0.3
-0.4
-0.8
-2.5
-3.5
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.1
-0.2
0.0
-1.3
2.2
10.0
19.9
69.2
100.0
0.1
0.1
0.0
-0.4
-0.3
15.9
10.8
17.0
25.6
12.2
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
-0.3
-0.2
-8.9
6.1
15.4
19.4
26.8
21.0
-0.1
-0.1
-0.2
-0.8
-1.2
22.6
23.9
26.7
32.3
33.9
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
10,133
10,359
10,251
9,800
8,315
49,155
4,398
1,976
1,567
374
36
Tax Units
(thousands)
4
Percent of
Total
20.6
21.1
20.9
19.9
16.9
100.0
9.0
4.0
3.2
0.8
0.1
Average
Income
(Dollars)
14,723
34,672
62,298
103,142
306,063
95,419
157,496
224,546
400,356
2,088,455
9,839,694
Average
Federal Tax
Burden
(Dollars)
-1,303
2,104
9,617
20,040
83,137
20,264
35,755
53,886
107,655
692,047
3,457,755
Average After-
Tax Income
5
(Dollars)
16,026
32,568
52,681
83,102
222,926
75,155
121,741
170,660
292,700
1,396,408
6,381,939
Average
Federal Tax
Rate
6
-8.9
6.1
15.4
19.4
27.2
21.2
22.7
24.0
26.9
33.1
35.1
Share of Pre-
Tax Income
Percent of
Total
3.2
7.7
13.6
21.6
54.3
100.0
14.8
9.5
13.4
16.7
7.6
Share of Post-
Tax Income
Percent of
Total
4.4
9.1
14.6
22.0
50.2
100.0
14.5
9.1
12.4
14.1
6.2
Share of
Federal Taxes
Percent of
Total
-1.3
2.2
9.9
19.7
69.4
100.0
15.8
10.7
16.9
26.0
12.5
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; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.

21-Jul-10 PRELIMINARY RESULTS
Table T10-0147
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Reduce Tax on Long-Term Capital Gains
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
1
Detail Table - Elderly Tax Units
Cash Income Percentile
2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent of Tax Units
4
With Tax Cut
With Tax
Increase
0.5
7.1
15.9
40.1
70.5
25.3
0.0
0.0
0.0
0.0
0.0
0.0
59.6
73.2
80.6
89.9
96.7
0.0
0.0
0.0
0.0
0.0
Percent Change in After-Tax
Income
5
Share of Total
Federal Tax
Change
0.0
0.1
0.1
0.2
1.1
0.7
0.0
0.7
1.7
6.0
91.6
100.0
0.4
0.5
0.9
1.7
2.2
6.9
7.2
19.4
58.2
32.7
Average Federal Tax Change
Dollars Percent
0
-11
-35
-134
-2,021
-406
0.0
-1.2
-1.4
-1.7
-3.1
-2.9
-350
-653
-1,721
-16,630
-95,401
-2.0
-2.2
-2.7
-3.8
-4.2
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
0.0
0.0
0.1
0.1
-0.2
0.0
0.3
1.7
3.6
10.4
84.0
100.0
0.1
0.1
0.0
-0.4
-0.3
10.0
9.5
20.8
43.7
21.8
http://www.taxpolicycenter.org
Average Federal Tax Rate
6
Change (%
Points)
Under the
Proposal
0.0
-0.1
-0.1
-0.2
-0.8
-0.5
2.5
3.8
6.1
11.3
24.5
18.2
-0.3
-0.4
-0.6
-1.2
-1.5
16.4
19.2
23.4
30.3
33.2
Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012
1
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
2,3
Number
5,016
8,213
5,981
5,495
5,617
30,543
2,427
1,362
1,394
434
42
Tax Units
(thousands)
4
Percent of
Total
16.4
26.9
19.6
18.0
18.4
100.0
8.0
4.5
4.6
1.4
0.1
Average
Income
(Dollars)
10,899
22,528
41,094
70,238
257,048
75,737
105,444
153,103
267,882
1,396,961
6,520,091
Average
Federal Tax
Burden
(Dollars)
271
870
2,528
8,100
64,864
14,171
17,672
30,078
64,285
440,038
2,261,131
Average After-
Tax Income
5
(Dollars)
10,628
21,658
38,566
62,139
192,184
61,566
87,772
123,025
203,597
956,923
4,258,960
Average
Federal Tax
Rate
6
2.5
3.9
6.2
11.5
25.2
18.7
16.8
19.7
24.0
31.5
34.7
Share of Pre-
Tax Income
Percent of
Total
2.4
8.0
10.6
16.7
62.4
100.0
11.1
9.0
16.1
26.2
12.0
Share of Post-
Tax Income
Percent of
Total
2.8
9.5
12.3
18.2
57.4
100.0
11.3
8.9
15.1
22.1
9.6
Share of
Federal Taxes
Percent of
Total
0.3
1.7
3.5
10.3
84.2
100.0
9.9
9.5
20.7
44.1
22.2
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; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains. Policy is reduced tax rates on long-term capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(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.