10‐Jun‐11
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 T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile, 2013 Summary Table
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 Income
5
Share of Total Federal Tax Change
Average Federal Tax Change ($)
Average Federal Tax Rate6
Change (% Points)
Under the Proposal
14.1
54.1
86.1
98.0
99.7
63.6
0.1
0.5
0.7
0.3
0.1
0.3
0.2
0.8
2.2
3.6
11.6
7.1
0.2
1.1
4.6
10.3
83.6
100.0
‐23
‐205
‐955
‐2,572
‐23,557
‐4,078
‐0.2
‐0.7
‐1.9
‐3.0
‐8.6
‐5.6
1.6
7.4
13.3
15.9
17.2
15.1
99.6
99.9
99.8
99.9
100.0
0.1
0.1
0.1
*
*
5.3
6.5
10.2
21.6
27.9
10.2
8.4
18.3
46.8
26.1
‐5,672
‐9,654
‐25,796
‐261,433
‐1,424,842
‐4.2
‐5.0
‐7.6
‐14.8
‐18.1
17.3
17.9
17.3
16.6
17.0
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
Number of AMT Taxpayers (millions). Baseline: 4.5 Proposal: 0.0
* Less than 0.05
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $17,910; 40% $37,091; 60% $64,533; 80% $111,349; 90% $160,384; 95% $227,324; 99% $593,011; 99.9% $2,682,257.
(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. TPC estimates are based on Governor Pawlenty's description of his tax proposal and subsequent remarks to the New York Times by his spokesperson Alex Conant. Because Governor Pawlenty did not specify which corporate tax expenditures he would eliminate, we provide an illustrative option that broadens the corporate tax base by eliminating the tax expenditures included in the Bipartisan Policy Center's Rivlin‐Domenici plan. Based on remarks by the Governor and Alex Conant, we did not eliminate any individual income tax expenditures. If Governor Pawlenty or his campaign staff provide the Tax Policy Center with additional details on his proposal we will re‐estimate his plan. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
1
Distribution of Federal Tax Change by Cash Income Percentile, 2013 Detail Table
Percent of Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
4
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 Rate 6
Change (% Points)
Under the Proposal
14.1
54.1
86.1
98.0
99.7
63.6
0.1
0.5
0.7
0.3
0.1
0.3
0.2
0.8
2.2
3.6
11.6
7.1
0.2
1.1
4.6
10.3
83.6
100.0
‐23
‐205
‐955
‐2,572
‐23,557
‐4,078
‐12.3
‐9.1
‐12.4
‐15.7
‐33.4
‐27.2
0.1
0.9
2.1
2.8
‐5.8
0.0
0.4
4.3
12.2
20.8
62.2
100.0
‐0.2
‐0.7
‐1.9
‐3.0
‐8.6
‐5.6
1.6
7.4
13.3
15.9
17.2
15.1
99.6
99.9
99.8
99.9
100.0
0.1
0.1
0.1
*
*
5.3
6.5
10.2
21.6
27.9
10.2
8.4
18.3
46.8
26.1
‐5,672
‐9,654
‐25,796
‐261,433
‐1,424,842
‐19.4
‐21.8
‐30.5
‐47.1
‐51.5
1.5
0.8
‐0.7
‐7.4
‐4.6
15.7
11.3
15.6
19.6
9.2
‐4.2
‐5.0
‐7.6
‐14.8
‐18.1
17.3
17.9
17.3
16.6
17.0
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
43,362
37,681
32,699
27,208
24,067
166,272
26.1
22.7
19.7
16.4
14.5
100.0
10,122
27,586
50,739
87,197
272,779
72,381
3.7
8.6
13.8
19.7
54.6
100.0
186
2,257
7,722
16,406
70,446
14,984
0.3
3.4
10.1
17.9
68.1
100.0
9,936
25,330
43,016
70,791
202,333
57,397
4.5
10.0
14.7
20.2
51.0
100.0
1.8
8.2
15.2
18.8
25.8
20.7
12,130
5,919
4,805
1,213
124
7.3
3.6
2.9
0.7
0.1
136,031
193,370
338,609
1,767,267
7,871,135
13.7
9.5
13.5
17.8
8.1
29,193
44,300
84,475
555,087
2,765,076
14.2
10.5
16.3
27.0
13.8
106,837
149,071
254,134
1,212,179
5,106,059
13.6
9.2
12.8
15.4
6.7
21.5
22.9
25.0
31.4
35.1
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
Number of AMT Taxpayers (millions). Baseline: 4.5 Proposal: 0.0
* Less than 0.05
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011
dollars): 20% $17,910; 40% $37,091; 60% $64,533; 80% $111,349; 90% $160,384; 95% $227,324; 99% $593,011; 99.9% $2,682,257.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table
Percent of Tax Units4
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
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 Rate 6
Change (% Points)
Under the Proposal
12.1
35.7
85.1
98.1
99.5
63.6
0.1
0.4
0.7
0.3
0.1
0.3
0.2
0.3
1.4
3.3
11.3
7.1
0.1
0.4
2.7
9.1
87.6
100.0
‐19
‐75
‐549
‐2,020
‐19,362
‐4,078
8.0
‐4.8
‐9.0
‐14.5
‐32.7
‐27.2
‐0.2
0.7
2.0
3.0
‐5.5
0.0
‐0.5
2.9
10.2
20.1
67.3
100.0
‐0.2
‐0.3
‐1.2
‐2.7
‐8.4
‐5.6
‐2.7
6.1
12.4
15.7
17.2
15.1
99.3
99.6
99.7
99.9
100.0
0.1
0.1
0.1
*
*
5.3
6.5
9.5
21.3
27.9
11.0
9.4
18.6
48.6
27.4
‐4,836
‐8,289
‐20,704
‐224,635
‐1,253,902
‐19.4
‐21.8
‐28.9
‐47.1
‐51.7
1.7
0.9
‐0.4
‐7.7
‐4.9
17.1
12.7
17.1
20.4
9.6
‐4.2
‐5.0
‐7.1
‐14.7
‐18.1
17.3
18.0
17.6
16.4
17.0
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
36,065
34,713
33,034
30,538
30,666
166,272
21.7
20.9
19.9
18.4
18.4
100.0
9,430
24,668
44,764
76,122
230,715
72,381
2.8
7.1
12.3
19.3
58.8
100.0
‐237
1,572
6,118
13,946
59,133
14,984
‐0.3
2.2
8.1
17.1
72.8
100.0
9,667
23,095
38,646
62,176
171,582
57,397
3.7
8.4
13.4
19.9
55.1
100.0
‐2.5
6.4
13.7
18.3
25.6
20.7
15,414
7,701
6,085
1,466
148
9.3
4.6
3.7
0.9
0.1
115,967
165,716
289,779
1,533,122
6,917,786
14.9
10.6
14.7
18.7
8.5
24,950
38,099
71,727
476,633
2,427,135
15.4
11.8
17.5
28.1
14.4
91,017
127,617
218,051
1,056,489
4,490,651
14.7
10.3
13.9
16.2
7.0
21.5
23.0
24.8
31.1
35.1
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
Number of AMT Taxpayers (millions). Baseline: 4.5 Proposal: 0.0
* Less than 0.05
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $12,691; 40% $24,715; 60% $41,205; 80% $67,703; 90% $97,820; 95% $138,778; 99% $358,616; 99.9% $1,621,247.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table ‐ Single Tax Units
Percent of Tax Units4
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
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 Rate 6
Change (% Points)
Under the Proposal
12.4
40.0
86.5
98.4
99.0
56.6
0.1
0.3
0.6
0.2
0.1
0.3
0.2
0.4
1.9
4.4
11.6
6.2
0.2
1.0
5.4
14.3
78.9
100.0
‐15
‐77
‐536
‐1,912
‐12,843
‐1,940
‐4.8
‐5.1
‐10.9
‐17.4
‐32.6
‐25.1
0.3
1.3
2.4
2.1
‐6.1
0.0
1.5
6.1
14.8
22.8
54.6
100.0
‐0.2
‐0.4
‐1.6
‐3.5
‐8.6
‐5.0
4.1
7.6
12.9
16.6
17.7
14.8
98.6
99.1
99.6
99.8
100.0
0.1
0.2
0.1
*
0.0
6.4
6.9
9.1
25.0
34.7
13.3
9.2
15.8
40.6
22.7
‐4,074
‐6,145
‐13,830
‐173,743
‐1,065,323
‐21.3
‐21.3
‐27.8
‐51.3
‐56.0
0.8
0.6
‐0.5
‐7.0
‐4.2
16.5
11.4
13.8
12.9
6.0
‐4.9
‐5.2
‐6.8
‐16.8
‐21.4
18.1
19.2
17.8
15.9
16.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
23,198
19,587
15,802
11,719
9,604
80,622
28.8
24.3
19.6
14.5
11.9
100.0
7,467
19,069
33,699
54,610
150,063
39,043
5.5
11.9
16.9
20.3
45.8
100.0
324
1,529
4,897
10,981
39,366
7,723
1.2
4.8
12.4
20.7
60.7
100.0
7,144
17,539
28,801
43,629
110,697
31,320
6.6
13.6
18.0
20.3
42.1
100.0
4.3
8.0
14.5
20.1
26.2
19.8
5,116
2,332
1,790
365
33
6.4
2.9
2.2
0.5
0.0
83,160
118,552
202,277
1,033,246
4,968,941
13.5
8.8
11.5
12.0
5.3
19,149
28,905
49,811
338,423
1,901,322
15.7
10.8
14.3
19.8
10.2
64,011
89,647
152,467
694,823
3,067,618
13.0
8.3
10.8
10.0
4.1
23.0
24.4
24.6
32.8
38.3
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $12,691; 40% $24,715; 60% $41,205; 80% $67,703; 90% $97,820; 95% $138,778; 99% $358,616; 99.9% $1,621,247.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table ‐ Married Tax Units Filing Jointly
Percent of Tax Units4
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
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 Rate 6
Change (% Points)
Under the Proposal
19.7
35.0
82.1
98.0
99.8
81.9
0.3
1.1
1.2
0.4
0.1
0.5
0.4
0.3
1.1
2.8
11.2
8.1
0.1
0.2
1.3
6.9
91.4
100.0
‐59
‐107
‐554
‐2,164
‐22,922
‐8,371
7.1
‐5.0
‐7.6
‐13.4
‐32.9
‐28.6
‐0.1
0.3
1.5
3.2
‐4.8
0.0
‐0.3
1.1
6.5
17.9
74.6
100.0
‐0.4
‐0.3
‐1.0
‐2.3
‐8.4
‐6.3
‐6.3
5.8
11.6
15.0
17.0
15.7
99.7
99.8
99.8
99.9
100.0
0.1
0.1
0.1
*
*
5.1
6.5
9.7
20.3
26.5
10.4
9.9
20.0
51.2
28.4
‐5,461
‐9,456
‐24,048
‐237,787
‐1,293,290
‐19.3
‐22.2
‐29.3
‐46.1
‐50.6
2.0
1.1
‐0.2
‐7.8
‐4.9
17.4
13.9
19.3
24.0
11.1
‐4.0
‐5.0
‐7.3
‐14.1
‐17.4
16.9
17.6
17.5
16.5
17.0
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
4,398
6,664
11,624
15,415
19,298
57,802
7.6
11.5
20.1
26.7
33.4
100.0
14,027
35,110
58,324
93,246
274,004
132,789
0.8
3.1
8.8
18.7
68.9
100.0
‐823
2,149
7,315
16,189
69,607
29,259
‐0.2
0.9
5.0
14.8
79.4
100.0
14,850
32,960
51,008
77,057
204,397
103,530
1.1
3.7
9.9
19.9
65.9
100.0
‐5.9
6.1
12.5
17.4
25.4
22.0
9,190
5,048
4,018
1,042
106
15.9
8.7
7.0
1.8
0.2
135,542
188,768
331,401
1,686,659
7,429,691
16.2
12.4
17.4
22.9
10.3
28,296
42,591
82,170
516,339
2,554,014
15.4
12.7
19.5
31.8
16.0
107,246
146,177
249,230
1,170,320
4,875,677
16.5
12.3
16.7
20.4
8.6
20.9
22.6
24.8
30.6
34.4
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $12,691; 40% $24,715; 60% $41,205; 80% $67,703; 90% $97,820; 95% $138,778; 99% $358,616; 99.9% $1,621,247.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table ‐ Head of Household Tax Units
Percent of Tax Units4
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
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 Rate 6
Change (% Points)
Under the Proposal
7.4
24.7
86.4
97.4
99.2
42.7
*
0.2
0.2
0.4
*
0.2
0.1
0.2
1.3
2.7
7.8
2.3
0.3
1.7
13.1
22.4
62.5
100.0
‐7
‐43
‐556
‐1,677
‐10,262
‐821
0.5
‐3.8
‐7.9
‐11.7
‐23.5
‐16.5
‐2.1
1.1
2.8
1.8
‐3.7
0.0
‐12.1
8.2
30.3
33.4
40.2
100.0
‐0.1
‐0.1
‐1.1
‐2.2
‐5.9
‐2.1
‐12.3
3.6
13.3
16.8
19.1
10.4
99.3
98.5
99.7
100.0
99.8
0.1
0.0
0.0
0.0
0.0
3.4
4.4
7.5
21.0
28.0
11.6
5.8
13.6
31.6
16.7
‐2,946
‐5,192
‐15,224
‐195,702
‐1,167,769
‐11.6
‐14.4
‐24.1
‐45.4
‐50.8
1.0
0.2
‐0.9
‐4.0
‐2.2
17.4
6.8
8.5
7.5
3.2
‐2.6
‐3.4
‐5.7
‐14.4
‐18.0
20.1
20.1
18.0
17.3
17.5
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
8,232
8,034
4,869
2,769
1,263
25,256
32.6
31.8
19.3
11.0
5.0
100.0
12,526
29,745
49,199
75,439
175,207
39,986
10.2
23.7
23.7
20.7
21.9
100.0
‐1,538
1,110
7,075
14,327
43,685
4,975
‐10.1
7.1
27.4
31.6
43.9
100.0
14,065
28,635
42,124
61,112
131,521
35,011
13.1
26.0
23.2
19.1
18.8
100.0
‐12.3
3.7
14.4
19.0
24.9
12.4
814
230
186
33
3
3.2
0.9
0.7
0.1
0.0
111,657
154,037
266,330
1,361,869
6,471,563
9.0
3.5
4.9
4.5
1.9
25,425
36,163
63,267
431,248
2,299,317
16.5
6.6
9.4
11.5
5.4
86,232
117,874
203,063
930,621
4,172,246
7.9
3.1
4.3
3.5
1.4
22.8
23.5
23.8
31.7
35.5
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $12,691; 40% $24,715; 60% $41,205; 80% $67,703; 90% $97,820; 95% $138,778; 99% $358,616; 99.9% $1,621,247.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table ‐ Tax Units with Children
Percent of Tax Units4
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
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 Rate 6
Change (% Points)
Under the Proposal
7.9
29.4
89.5
98.9
99.8
63.1
0.1
0.7
0.6
0.2
0.1
0.3
0.1
0.2
1.3
2.9
11.0
6.4
0.1
0.3
2.9
10.1
86.5
100.0
‐15
‐62
‐674
‐2,356
‐24,181
‐4,721
0.7
‐5.2
‐7.6
‐12.3
‐30.5
‐25.0
‐0.8
0.4
2.2
3.5
‐5.2
0.0
‐3.1
1.8
11.8
23.9
65.6
100.0
‐0.1
‐0.2
‐1.1
‐2.3
‐8.1
‐5.1
‐15.9
3.3
13.6
16.6
18.4
15.2
99.8
99.9
99.8
100.0
100.0
0.1
0.1
*
0.0
*
5.1
6.1
10.4
21.0
27.1
11.5
8.8
20.4
45.9
24.2
‐6,102
‐10,331
‐29,963
‐279,815
‐1,605,709
‐17.7
‐19.7
‐29.1
‐44.2
‐49.4
1.6
0.8
‐1.0
‐6.6
‐4.0
17.9
11.9
16.5
19.3
8.3
‐3.9
‐4.7
‐7.6
‐14.2
‐17.5
18.4
19.0
18.6
18.0
17.9
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
10,088
10,789
10,009
9,950
8,349
49,418
20.4
21.8
20.3
20.1
16.9
100.0
13,356
33,957
60,740
101,182
298,935
93,026
2.9
8.0
13.2
21.9
54.3
100.0
‐2,114
1,196
8,903
19,148
79,224
18,899
‐2.3
1.4
9.5
20.4
70.8
100.0
15,469
32,761
51,837
82,034
219,711
74,127
4.3
9.7
14.2
22.3
50.1
100.0
‐15.8
3.5
14.7
18.9
26.5
20.3
4,396
1,981
1,589
382
35
8.9
4.0
3.2
0.8
0.1
154,877
221,864
392,402
1,966,324
9,174,185
14.8
9.6
13.6
16.4
7.0
34,568
52,483
102,861
633,051
3,251,762
16.3
11.1
17.5
25.9
12.2
120,309
169,381
289,541
1,333,273
5,922,424
14.4
9.2
12.6
13.9
5.7
22.3
23.7
26.2
32.2
35.4
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $12,691; 40% $24,715; 60% $41,205; 80% $67,703; 90% $97,820; 95% $138,778; 99% $358,616; 99.9% $1,621,247.
(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. 10‐Jun‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0171
TPC Interpretation of Governor Tim Pawlenty's Tax Proposal Outline
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table ‐ Elderly Tax Units
Percent of Tax Units4
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
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)
Average Federal Tax Rate 6
Under the Proposal
Change (% Points)
Under the Proposal
16.2
38.7
74.0
97.0
99.6
64.4
0.0
0.1
1.4
0.9
0.1
0.5
0.2
0.4
1.1
3.5
14.3
8.9
0.1
0.4
1.9
7.2
90.5
100.0
‐15
‐84
‐429
‐2,170
‐25,326
‐5,222
‐23.3
‐26.5
‐21.7
‐28.2
‐45.9
‐43.0
0.0
0.2
1.4
2.8
‐4.4
0.0
0.1
0.9
5.0
13.8
80.1
100.0
‐0.2
‐0.4
‐1.1
‐3.1
‐10.9
‐7.4
0.5
1.2
3.9
7.9
12.8
9.8
99.4
99.6
99.9
99.9
100.0
*
*
0.1
*
*
6.2
8.5
11.5
25.2
32.3
9.1
9.6
19.3
52.5
29.3
‐5,563
‐10,575
‐23,935
‐237,689
‐1,292,589
‐33.6
‐37.0
‐40.7
‐54.3
‐56.9
1.9
1.2
0.8
‐8.3
‐5.4
13.6
12.3
21.1
33.2
16.7
‐5.3
‐6.9
‐9.0
‐17.2
‐20.6
10.4
11.8
13.1
14.5
15.6
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units
Cash Income Percentile 2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
Pre‐Tax Income
Federal Tax Burden
After‐Tax Income 5
Average Federal Tax Rate 6
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
Average (dollars)
Percent of Total
5,988
9,396
8,334
6,402
6,913
37,068
16.2
25.4
22.5
17.3
18.7
100.0
9,531
20,198
40,053
69,759
232,751
71,055
2.2
7.2
12.7
17.0
61.1
100.0
66
316
1,981
7,707
55,130
12,158
0.1
0.7
3.7
11.0
84.6
100.0
9,464
19,882
38,072
62,051
177,621
58,897
2.6
8.6
14.5
18.2
56.2
100.0
0.7
1.6
5.0
11.1
23.7
17.1
3,175
1,753
1,557
427
44
8.6
4.7
4.2
1.2
0.1
105,683
152,604
266,474
1,382,440
6,274,992
12.7
10.2
15.8
22.4
10.4
16,542
28,583
58,752
437,431
2,272,830
11.7
11.1
20.3
41.5
22.1
89,141
124,021
207,722
945,009
4,002,162
13.0
10.0
14.8
18.5
8.0
15.7
18.7
22.1
31.6
36.2
Number (thousands)
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Source: Urban‐Brookings Tax Policy Center Microsimulation Model (version 0411‐2).
* Less than 0.05
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Baseline is current policy, which assumes extension of all temporary provisions in place for 2011 with the exception of the payroll tax cut and indexes the AMT exemption level after 2011. Proposal would: (a) repeal individual alternative minimum tax; (b) impose rate of 10 percent on first $50,000 of taxable income ($100,000 for married couples filing a joint return) and 25 percent on amounts above that threshold, indexed for inflation after 2011; (c) exclude interest income, dividends, and gains from sales of capital assets from gross income; (d) repeal deduction for investment interest; (e) repeal 3.8 percent additional Medicare tax on investment income; (f) impose an alternative tax rate of 15 percent on sole proprietor, farm, partnership, S corporation, and rental income; (g) repeal the estate tax; and (h) reduce the corporate tax rate to 15 percent. Governor Pawlenty has not specified which corporate tax expenditures he would eliminate; our estimates assume the same base broadeners as in the Bipartisan Policy Center's tax reform proposal (Rivlin/Domenici). Effective date: 01/01/13.
(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 2011 dollars): 20% $12,691; 40% $24,715; 60% $41,205; 80% $67,703; 90% $97,820; 95% $138,778; 99% $358,616; 99.9% $1,621,247.
(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.