18‐Oct‐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 T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile 2
Summary Table
Tax Units with Tax Increase or Cut 5
Cash Income Percentile3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
Pct of Tax Avg Tax Cut
Units
With Tax Increase
Pct of Tax Avg Tax Units
Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Rate7
Average Federal Tax Change ($)
Change (% Points)
Under the Proposal
2.8
6.1
15.9
32.6
70.9
21.0
‐698
‐1,271
‐1,978
‐4,253
‐36,328
‐19,275
90.4
93.7
84.1
67.4
29.1
77.0
1,857
3,490
4,203
5,082
5,856
3,499
‐17.0
‐13.0
‐7.7
‐3.0
12.2
2.3
‐34.1
‐56.9
‐50.1
‐26.7
267.9
100.0
1,659
3,189
3,238
2,071
‐23,522
‐1,271
16.4
11.6
6.4
2.4
‐8.6
‐1.8
20.2
22.3
23.8
23.7
20.5
21.9
58.7
77.4
87.9
94.2
97.8
‐6,821
‐11,097
‐32,806
‐334,252
‐1,751,573
41.3
22.6
12.1
5.8
2.2
4,941
5,808
9,470
42,265
264,054
1.8
5.0
11.0
26.9
35.4
10.7
19.9
60.8
176.5
99.5
‐1,871
‐7,104
‐26,737
‐307,473
‐1,689,562
‐1.4
‐3.7
‐7.9
‐17.4
‐21.5
23.3
22.2
20.0
17.9
17.9
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: 21.0 Proposal: 0.0
* Less than 0.05
** Insufficient data
(1) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level
Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully
phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $17,909; 40% $37,090; 60% $64,531; 80% $111,344; 90% $160,377; 95% $227,314; 99% $592,985; 99.9% $2,682,143.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
2
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Detail Table
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (% Points)
Average Federal Tax Rate 7
Under the Proposal
Change (% Points)
Under the Proposal
2.8
6.1
15.9
32.6
70.9
21.0
90.4
93.7
84.1
67.4
29.1
77.0
‐17.0
‐13.0
‐7.7
‐3.0
12.2
2.3
‐34.1
‐56.9
‐50.1
‐26.7
267.9
100.0
1,659
3,189
3,238
2,071
‐23,522
‐1,271
436.8
107.5
36.7
11.1
‐29.6
‐7.4
2.8
4.9
4.8
3.6
‐16.1
0.0
3.4
8.8
15.0
21.4
51.2
100.0
16.4
11.6
6.4
2.4
‐8.6
‐1.8
20.2
22.3
23.8
23.7
20.5
21.9
58.7
77.4
87.9
94.2
97.8
41.3
22.6
12.1
5.8
2.2
1.8
5.0
11.0
26.9
35.4
10.7
19.9
60.8
176.5
99.5
‐1,871
‐7,104
‐26,737
‐307,473
‐1,689,562
‐5.6
‐14.2
‐28.3
‐49.3
‐54.5
0.3
‐0.8
‐3.6
‐12.0
‐6.9
14.6
9.7
12.4
14.6
6.7
‐1.4
‐3.7
‐7.9
‐17.4
‐21.5
23.3
22.2
20.0
17.9
17.9
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
2
by Cash Income Percentile, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
380
2,966
8,815
18,634
79,526
17,091
0.6
3.9
10.1
17.8
67.4
100.0
9,742
24,621
41,924
68,563
193,254
55,290
4.6
10.1
14.9
20.3
50.6
100.0
3.8
10.8
17.4
21.4
29.2
23.6
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
33,513
50,000
94,594
624,137
3,098,549
14.3
10.4
16.0
26.6
13.6
102,517
143,370
244,015
1,143,130
4,772,586
13.5
9.2
12.8
15.1
6.5
24.6
25.9
27.9
35.3
39.4
Average (dollars)
Average (dollars)
Percent of Total
Average (dollars)
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: 21.0 Proposal: 0.0
* Less than 0.05
(1) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $17,909; 40% $37,090; 60% $64,531; 80% $111,344; 90% $160,377; 95% $227,314; 99% $592,985; 99.9% $2,682,143.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size 2
Detail Table
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (% Points)
Average Federal Tax Rate 7
Under the Proposal
Change (% Points)
Under the Proposal
2.8
2.2
9.5
25.7
71.4
21.0
89.2
97.5
90.3
74.3
28.6
77.0
‐21.6
‐14.4
‐9.0
‐4.1
11.6
2.3
‐34.3
‐52.8
‐53.2
‐35.8
276.4
100.0
2,012
3,215
3,406
2,474
‐19,045
‐1,271
1,915.3
139.3
47.9
15.6
‐28.7
‐7.4
2.8
4.5
4.9
4.2
‐16.5
0.0
2.9
7.3
13.2
21.3
55.2
100.0
21.3
13.0
7.6
3.3
‐8.3
‐1.8
22.5
22.4
23.5
24.1
20.5
21.9
60.3
77.4
86.6
92.7
97.7
39.7
22.6
13.4
7.3
2.3
1.2
4.9
10.2
26.8
35.6
7.5
22.2
61.8
185.0
104.8
‐1,022
‐6,085
‐21,462
‐266,527
‐1,494,257
‐3.6
‐14.3
‐26.8
‐49.6
‐54.9
0.6
‐0.9
‐3.6
‐12.6
‐7.3
15.8
10.7
13.5
15.1
6.9
‐0.9
‐3.7
‐7.4
‐17.4
‐21.6
23.3
22.1
20.2
17.7
17.8
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
2
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
105
2,308
7,106
15,834
66,366
17,091
0.1
2.8
8.3
17.0
71.6
100.0
9,325
22,360
37,658
60,288
164,348
55,290
3.7
8.4
13.5
20.0
54.8
100.0
1.1
9.4
15.9
20.8
28.8
23.6
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
28,051
42,628
79,971
537,321
2,722,897
15.2
11.6
17.1
27.7
14.2
87,916
123,088
209,807
995,800
4,194,889
14.7
10.3
13.9
15.9
6.8
24.2
25.7
27.6
35.1
39.4
Average (dollars)
Average (dollars)
Percent of Total
Average (dollars)
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: 21.0 Proposal: 0.0
* Less than 0.05
(1) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772; 99% $358,601; 99.9% $1,621,178.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size 2
Detail Table ‐ Single Tax Units
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (% Points)
Average Federal Tax Rate 7
Under the Proposal
Change (% Points)
Under the Proposal
3.2
2.9
14.7
36.8
77.3
19.2
86.0
96.6
85.1
63.2
22.7
77.2
‐14.4
‐10.2
‐6.8
‐2.0
14.6
2.0
‐48.3
‐71.1
‐62.0
‐20.0
301.6
100.0
1,017
1,775
1,917
834
‐15,349
‐606
241.0
102.1
35.9
7.1
‐34.4
‐7.0
3.8
5.7
5.6
3.0
‐18.1
0.0
5.2
10.6
17.7
22.9
43.4
100.0
13.6
9.3
5.7
1.5
‐10.2
‐1.6
19.3
18.4
21.6
23.1
19.5
20.6
71.4
82.8
84.1
90.3
97.8
28.5
17.2
15.9
9.8
2.2
4.1
8.7
13.2
35.4
46.9
26.9
35.7
70.1
168.8
89.8
‐2,571
‐7,481
‐19,145
‐226,170
‐1,316,070
‐12.2
‐23.3
‐33.5
‐57.4
‐60.9
‐0.9
‐1.9
‐4.2
‐11.2
‐6.0
14.6
8.9
10.5
9.5
4.4
‐3.1
‐6.3
‐9.5
‐21.9
‐26.5
22.2
20.8
18.8
16.2
17.0
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
2
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
422
1,739
5,347
11,790
44,630
8,637
1.4
4.9
12.1
19.8
61.6
100.0
7,045
17,329
28,352
42,819
105,433
30,407
6.7
13.9
18.3
20.5
41.3
100.0
5.7
9.1
15.9
21.6
29.7
22.1
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
21,007
32,161
57,181
393,929
2,162,383
15.4
10.8
14.7
20.7
10.4
62,152
86,391
145,096
639,317
2,806,558
13.0
8.2
10.6
9.5
3.8
25.3
27.1
28.3
38.1
43.5
Average (dollars)
Percent of Total
Average (dollars)
Average (dollars)
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) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772; 99% $358,601; 99.9% $1,621,178.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size 2
Detail Table ‐ Married Tax Units Filing Jointly
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (% Points)
Average Federal Tax Rate 7
Under the Proposal
Change (% Points)
Under the Proposal
3.9
2.0
3.3
16.3
68.3
28.5
90.7
97.9
96.7
83.7
31.7
71.0
‐28.8
‐16.8
‐11.1
‐5.3
10.8
4.0
‐7.7
‐15.2
‐27.7
‐26.3
177.1
100.0
4,015
5,256
5,476
3,918
‐21,085
‐3,976
5,361.4
138.1
62.0
20.7
‐27.0
‐11.9
1.0
2.2
4.5
5.6
‐13.4
0.0
1.1
3.6
9.8
20.7
64.7
100.0
28.6
15.0
9.4
4.2
‐7.7
‐3.0
29.2
25.8
24.5
24.5
20.8
22.1
53.1
74.9
88.0
93.6
97.7
46.8
25.1
12.0
6.4
2.3
0.1
3.9
9.5
24.9
33.4
0.2
12.0
39.8
125.0
70.5
‐56
‐5,473
‐22,760
‐275,698
‐1,527,658
‐0.2
‐11.5
‐25.0
‐47.7
‐53.4
2.1
0.1
‐2.8
‐12.7
‐7.4
17.4
12.6
16.1
18.6
8.3
0.0
‐2.9
‐6.9
‐16.4
‐20.6
23.7
22.4
20.6
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
2
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
75
3,806
8,836
18,898
78,019
33,359
0.0
1.3
5.3
15.1
78.1
100.0
13,952
31,304
49,488
74,348
195,984
99,430
1.1
3.6
10.0
19.9
65.8
100.0
0.5
10.8
15.2
20.3
28.5
25.1
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
32,197
47,791
91,006
578,469
2,859,912
15.4
12.5
19.0
31.3
15.7
103,344
140,977
240,394
1,108,191
4,569,779
16.5
12.4
16.8
20.1
8.4
23.8
25.3
27.5
34.3
38.5
Average (dollars)
Percent of Total
Average (dollars)
Average (dollars)
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) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772; 99% $358,601; 99.9% $1,621,178.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size 2
Detail Table ‐ Head of Household Tax Units
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Average Federal Tax Rate 7
Share of Federal Taxes
Change (% Points)
Under the Proposal
Change (% Points)
Under the Proposal
1.2
0.6
5.9
26.9
74.0
8.4
97.5
99.4
93.9
73.1
26.0
91.0
‐28.2
‐18.6
‐8.6
‐3.0
8.2
‐9.5
38.4
50.7
21.2
6.0
‐16.4
100.0
3,758
5,079
3,512
1,745
‐10,448
3,190
‐469.2
215.0
41.1
10.7
‐21.9
50.5
14.3
13.0
‐1.6
‐7.5
‐18.2
0.0
10.2
24.9
24.5
20.8
19.6
100.0
30.0
17.1
7.1
2.3
‐6.0
8.0
23.6
25.0
24.5
23.9
21.3
23.8
70.1
81.1
78.5
94.7
97.4
29.9
19.0
21.5
5.3
2.6
2.4
5.2
7.7
25.0
34.6
‐2.0
‐1.7
‐3.5
‐9.1
‐5.0
‐2,005
‐6,013
‐15,193
‐220,176
‐1,353,710
‐7.3
‐15.3
‐22.3
‐45.9
‐52.9
‐5.4
‐2.5
‐3.8
‐6.4
‐3.3
8.7
3.2
4.1
3.6
1.5
‐1.8
‐3.9
‐5.7
‐16.2
‐20.9
22.9
21.7
19.9
19.0
18.6
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
2
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
‐801
2,363
8,538
16,282
47,675
6,311
‐4.1
11.9
26.1
28.3
37.8
100.0
13,327
27,382
40,661
59,157
127,531
33,675
12.9
25.9
23.3
19.3
18.9
100.0
‐6.4
7.9
17.4
21.6
27.2
15.8
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
27,609
39,378
68,177
479,425
2,558,687
14.1
5.7
7.9
10.1
4.8
84,048
114,659
198,153
882,443
3,912,875
8.0
3.1
4.3
3.5
1.4
24.7
25.6
25.6
35.2
39.5
Average (dollars)
Percent of Total
Average (dollars)
Average (dollars)
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) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772; 99% $358,601; 99.9% $1,621,178.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size 2
Detail Table ‐ Tax Units with Children
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (% Points)
Average Federal Tax Rate 7
Under the Proposal
Change (% Points)
Under the Proposal
0.7
0.7
4.3
22.2
73.6
18.1
93.1
99.3
95.7
77.8
26.4
80.5
‐31.7
‐19.2
‐9.9
‐3.8
10.5
‐0.2
900.1
1,248.6
957.1
579.6
‐3,593.4
100.0
4,580
5,941
4,908
2,990
‐22,093
104
‐416.1
194.8
44.6
13.1
‐24.9
0.5
4.2
5.8
4.4
2.6
‐17.0
0.0
3.2
8.8
14.4
23.2
50.3
100.0
34.3
17.5
8.1
3.0
‐7.4
0.1
26.1
26.5
26.2
25.6
22.3
24.1
62.3
81.0
90.1
96.2
98.3
37.6
19.0
9.9
3.8
1.7
1.2
4.5
9.6
25.2
33.5
‐118.6
‐282.7
‐831.0
‐2,361.1
‐1,273.9
‐1,385
‐7,327
‐26,837
‐317,025
‐1,860,503
‐3.5
‐12.4
‐23.8
‐44.7
‐51.3
‐0.6
‐1.4
‐3.9
‐11.1
‐6.0
15.1
9.3
12.3
13.6
5.6
‐0.9
‐3.3
‐6.8
‐16.1
‐20.3
24.6
23.4
21.9
20.0
19.3
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
2
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
‐1,101
3,050
11,001
22,868
88,778
22,303
‐1.0
3.0
10.0
20.6
67.3
100.0
14,456
30,907
49,739
78,314
210,157
70,723
4.2
9.5
14.2
22.3
50.2
100.0
‐8.2
9.0
18.1
22.6
29.7
24.0
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
39,479
59,124
112,658
710,074
3,627,809
15.8
10.6
16.3
24.6
11.6
115,399
162,740
279,744
1,256,250
5,546,377
14.5
9.2
12.7
13.7
5.6
25.5
26.7
28.7
36.1
39.5
Average (dollars)
Average (dollars)
Average (dollars)
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) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772; 99% $358,601; 99.9% $1,621,178.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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. 18‐Oct‐11
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T11‐0373
Herman Cain's "9‐9‐9" Tax Reform Plan without Poverty Deduction 1
Baseline: Current Law
Fully Phased in Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size 2
Detail Table ‐ Elderly Tax Units
Percent of Tax Units 5
Cash Income Percentile 3,4
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Increase
Percent Change in After‐Tax Income6
Share of Total Federal Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (% Points)
Average Federal Tax Rate 7
Under the Proposal
Change (% Points)
Under the Proposal
2.8
2.3
5.9
15.2
56.8
15.6
92.1
97.6
94.1
84.8
43.2
83.5
‐12.4
‐11.4
‐11.5
‐7.3
15.7
4.3
‐7.9
‐23.8
‐40.4
‐31.5
203.4
100.0
1,175
2,269
4,343
4,419
‐26,391
‐2,420
1,564.7
619.9
182.2
48.9
‐40.8
‐17.0
1.6
5.0
9.0
8.7
‐24.3
0.0
1.7
5.6
12.8
19.6
60.2
100.0
12.3
11.2
10.8
6.3
‐11.3
‐3.4
13.1
13.1
16.8
19.3
16.4
16.7
37.9
61.2
80.9
91.0
98.7
62.1
38.8
19.1
9.0
1.4
‐0.4
5.6
13.9
34.5
43.4
‐1.3
13.0
47.4
144.3
78.4
365
‐6,657
‐27,305
‐302,721
‐1,604,042
1.8
‐19.7
‐39.1
‐60.0
‐62.2
2.7
‐0.4
‐5.5
‐21.1
‐11.7
14.6
10.9
15.1
19.7
9.7
0.4
‐4.4
‐10.3
‐21.9
‐25.6
19.1
17.8
16.0
14.6
15.5
Addendum
80‐90
90‐95
95‐99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
2
by Cash Income Percentile Adjusted for Family Size, 2013 Tax Units5
Cash Income Percentile 3,4
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre‐Tax Income
After‐Tax Income 6
Federal Tax Burden
Percent of Total
Percent of Total
Percent of Total
Average Federal Tax Rate 7
Number (thousands)
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
75
366
2,383
9,043
64,617
14,265
0.1
0.7
3.8
11.0
84.5
100.0
9,456
19,832
37,669
60,716
168,134
56,790
2.7
8.9
14.9
18.5
55.2
100.0
0.8
1.8
6.0
13.0
27.8
20.1
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
19,828
33,855
69,807
504,551
2,577,217
11.9
11.2
20.6
40.8
21.4
85,855
118,749
196,667
877,888
3,697,775
13.0
9.9
14.6
17.8
7.7
18.8
22.2
26.2
36.5
41.1
Average (dollars)
Average (dollars)
Average (dollars)
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) Since we conducted this analysis, the Cain campaign has said tax units could claim a deduction on the individual flat tax to mitigate the effects on households below the poverty level. Despite several requests for clarification, the campaign has not defined clearly how that deduction would work. This analysis therefore does not include a poverty deduction. Including a poverty deduction would reduce taxes for households claiming the deduction but would require either higher tax rates or a broader tax base in order to raise the same amount of revenue as the version of the plan without poverty relief. (Footnote added November 10, 2011)
(2) Baseline is 2013 current law. Proposal replaces the individual income tax, corporate income tax, payroll tax and estate tax with presidential candidate Herman Cain's 9‐9‐9 Plan. The fully phased in proposal is evaluated at 2013 income levels and all amounts are expressed in 2013 dollars. For a detailed description of TPC's interpretation of the 9‐9‐9 Plan, see www.taxpolicycenter.org/taxtopics/Cain‐9‐9‐9‐plan.cfm. For a description of TPC's current law and current policy baselines, see http://www.taxpolicycenter.org/T11‐0270
(3) 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
(4) 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% $12,690; 40% $24,714; 60% $41,203; 80% $67,700; 90% $97,816; 95% $138,772; 99% $358,601; 99.9% $1,621,178.
(5) Includes both filing and non‐filing units but excludes those that are dependents of other tax units.
(6) 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.
(7) 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.