25-Jan-10
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 T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Summary Table
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
0.0
0.0
0.8
3.3
4.4
5.2
6.8
2.9
0.1
0.2
0.0
2.5
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
1.4
8.7
14.5
32.0
31.8
11.6
0.1
0.0
0.0
100.0
Average
Federal Tax
Change ($)
0
0
-1
-6
-14
-18
-25
-7
0
0
0
-8
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5
Under the
Proposal
4.7
5.5
10.9
14.9
17.0
19.1
21.3
24.4
27.2
28.4
33.7
22.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 16.6
Proposal: 16.8
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to
$3,000 for one child and $6,000 for two or more children; increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the
credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Detail Table
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.8
3.3
4.4
5.2
6.8
2.9
0.1
0.2
0.0
2.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
1.4
8.7
14.5
32.0
31.8
11.6
0.1
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
0
-1
-6
-14
-18
-25
-7
0
0
0
-8
Percent
0.0
0.0
0.0
-0.1
-0.2
-0.2
-0.1
0.0
0.0
0.0
0.0
-0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.2
0.9
2.2
3.4
3.8
9.8
11.0
25.8
17.0
7.5
18.3
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
4.7
5.5
10.9
14.9
17.0
19.1
21.3
24.4
27.2
28.4
33.7
22.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
19,473
25,675
20,342
16,056
12,370
20,373
14,743
18,513
5,241
954
446
155,368
Percent of
Total
12.5
16.5
13.1
10.3
8.0
13.1
9.5
11.9
3.4
0.6
0.3
100.0
Average
Income
(Dollars)
5,992
15,574
25,575
35,907
46,113
64,251
89,246
145,841
304,480
711,387
3,116,878
71,667
Average
Federal Tax
Burden
(Dollars)
279
857
2,787
5,364
7,842
12,305
18,993
35,578
82,753
202,025
1,050,796
16,449
Average AfterTax Income 4
(Dollars)
5,712
14,717
22,788
30,543
38,271
51,946
70,253
110,263
221,727
509,363
2,066,082
55,218
Average
Federal Tax
Rate 5
4.7
5.5
10.9
14.9
17.0
19.2
21.3
24.4
27.2
28.4
33.7
23.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.1
3.6
4.7
5.2
5.1
11.8
11.8
24.3
14.3
6.1
12.5
100.0
1.3
4.4
5.4
5.7
5.5
12.3
12.1
23.8
13.5
5.7
10.7
100.0
0.2
0.9
2.2
3.4
3.8
9.8
11.0
25.8
17.0
7.5
18.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 16.6
Proposal: 16.8
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
1
Distribution of Federal Tax Change by Cash Income Level, 2011
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.2
0.2
0.5
0.2
0.1
0.2
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.1
9.2
13.4
38.4
25.6
3.7
9.7
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
0
0
0
-1
-1
0
-1
0
0
0
0
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
1.1
3.7
6.5
8.2
8.4
17.2
12.4
16.5
10.3
4.6
11.0
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
8.5
9.5
14.8
18.7
20.2
22.9
25.3
26.3
29.5
31.6
37.7
22.5
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2011
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
13,625
15,494
10,657
7,568
5,576
7,296
3,425
2,751
701
127
59
67,885
20.1
22.8
15.7
11.2
8.2
10.8
5.1
4.1
1.0
0.2
0.1
100.0
Average
Income
(Dollars)
5,910
15,417
25,474
35,938
46,070
63,429
88,382
140,736
306,169
709,117
3,064,204
40,448
Average
Federal Tax
Burden
(Dollars)
500
1,459
3,779
6,709
9,307
14,528
22,362
37,032
90,381
223,853
1,155,368
9,101
Average After4
Tax Income
(Dollars)
5,410
13,958
21,695
29,229
36,764
48,901
66,021
103,703
215,788
485,263
1,908,836
31,347
Average
Federal Tax
5
Rate
8.5
9.5
14.8
18.7
20.2
22.9
25.3
26.3
29.5
31.6
37.7
22.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.9
8.7
9.9
9.9
9.4
16.9
11.0
14.1
7.8
3.3
6.6
100.0
3.5
10.2
10.9
10.4
9.6
16.8
10.6
13.4
7.1
2.9
5.3
100.0
1.1
3.7
6.5
8.2
8.4
17.2
12.4
16.5
10.3
4.6
11.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
1
Distribution of Federal Tax Change by Cash Income Level, 2011
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.1
1.4
2.9
5.8
8.4
3.2
0.1
0.2
0.0
3.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
0.1
1.5
4.3
29.4
46.8
17.8
0.1
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
0
0
-2
-7
-19
-30
-8
0
0
0
-10
Percent
0.0
0.0
0.0
-0.1
-0.1
-0.2
-0.2
0.0
0.0
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.0
0.2
0.5
0.9
1.4
5.8
9.9
30.3
20.5
9.1
21.3
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
4.3
3.6
7.0
10.2
12.7
16.0
19.7
24.0
26.9
27.9
33.1
24.0
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2011
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,449
4,462
4,928
4,438
4,139
9,641
9,818
14,926
4,378
795
368
60,792
4.0
7.3
8.1
7.3
6.8
15.9
16.2
24.6
7.2
1.3
0.6
100.0
Average
Income
(Dollars)
5,126
15,983
25,734
36,076
46,216
65,170
89,778
147,281
304,202
712,174
3,053,140
119,608
Average
Federal Tax
Burden
(Dollars)
220
575
1,804
3,663
5,885
10,472
17,677
35,397
81,731
198,776
1,009,398
28,721
Average After4
Tax Income
(Dollars)
4,906
15,408
23,931
32,413
40,331
54,698
72,100
111,884
222,471
513,398
2,043,742
90,887
Average
Federal Tax
5
Rate
4.3
3.6
7.0
10.2
12.7
16.1
19.7
24.0
26.9
27.9
33.1
24.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.2
1.0
1.7
2.2
2.6
8.6
12.1
30.2
18.3
7.8
15.5
100.0
0.2
1.2
2.1
2.6
3.0
9.5
12.8
30.2
17.6
7.4
13.6
100.0
0.0
0.2
0.5
0.9
1.4
5.8
9.9
30.3
20.5
9.1
21.3
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
1
Distribution of Federal Tax Change by Cash Income Level, 2011
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.1
3.3
12.5
16.9
16.3
13.9
7.5
0.3
0.0
0.0
7.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.1
0.2
0.1
0.1
0.0
0.0
0.0
0.0
0.1
Share of Total
Federal Tax
Change
0.0
0.0
2.8
17.3
26.3
35.4
14.3
3.9
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
0
-3
-24
-58
-62
-58
-28
-1
0
0
-21
Percent
0.0
0.0
-0.3
-0.6
-0.8
-0.5
-0.3
-0.1
0.0
0.0
0.0
-0.4
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.1
0.0
0.0
0.0
0.0
Under the
Proposal
-1.5
-2.9
4.2
11.5
12.4
25.7
17.5
16.9
6.5
2.8
6.8
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
-0.1
Under the
Proposal
-9.1
-4.7
5.2
12.4
16.2
19.4
22.1
24.5
25.1
26.5
34.0
15.1
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Level, 2011
Cash Income Level
(thousands of 2009
2
dollars)
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
3,209
5,408
4,419
3,670
2,322
2,941
1,267
710
119
21
9
24,178
13.3
22.4
18.3
15.2
9.6
12.2
5.2
2.9
0.5
0.1
0.0
100.0
Average
Income
(Dollars)
6,999
15,686
25,635
35,569
46,068
63,194
87,790
135,920
304,528
686,300
3,051,458
38,406
Average
Federal Tax
Burden
(Dollars)
-637
-737
1,331
4,429
7,515
12,311
19,463
33,306
76,429
181,581
1,037,451
5,818
Average After4
Tax Income
(Dollars)
7,635
16,424
24,304
31,140
38,553
50,883
68,326
102,613
228,099
504,719
2,014,006
32,588
Average
Federal Tax
5
Rate
-9.1
-4.7
5.2
12.5
16.3
19.5
22.2
24.5
25.1
26.5
34.0
15.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.4
9.1
12.2
14.1
11.5
20.0
12.0
10.4
3.9
1.6
3.0
100.0
3.1
11.3
13.6
14.5
11.4
19.0
11.0
9.3
3.4
1.4
2.3
100.0
-1.5
-2.8
4.2
11.6
12.4
25.7
17.5
16.8
6.5
2.8
6.8
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.1
2.8
10.3
13.0
14.8
16.3
6.3
0.1
0.4
0.0
7.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
1.4
8.1
13.9
31.9
32.8
11.8
0.1
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
0
-3
-19
-41
-52
-60
-16
0
0
0
-23
Percent
0.0
0.0
-0.3
-0.5
-0.6
-0.4
-0.3
0.0
0.0
0.0
0.0
-0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-0.3
-0.8
0.5
1.9
2.7
8.0
11.1
30.2
19.9
8.4
18.4
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-12.8
-7.9
3.4
11.4
15.4
18.3
20.6
24.4
27.4
29.5
34.5
23.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
3,805
6,209
5,470
4,817
3,830
6,853
6,138
8,529
2,436
405
175
48,902
7.8
12.7
11.2
9.9
7.8
14.0
12.6
17.4
5.0
0.8
0.4
100.0
Average
Income
(Dollars)
6,625
15,826
25,668
35,746
46,097
64,651
89,544
147,403
303,499
714,589
3,095,878
90,398
Average
Federal Tax
Burden
(Dollars)
-849
-1,244
867
4,105
7,132
11,884
18,511
36,036
83,286
210,582
1,068,674
20,862
Average AfterTax Income 4
(Dollars)
7,474
17,070
24,801
31,641
38,965
52,768
71,033
111,367
220,213
504,007
2,027,203
69,536
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-12.8
-7.9
3.4
11.5
15.5
18.4
20.7
24.5
27.4
29.5
34.5
23.1
0.6
2.2
3.2
3.9
4.0
10.0
12.4
28.4
16.7
6.6
12.3
100.0
0.8
3.1
4.0
4.5
4.4
10.6
12.8
27.9
15.8
6.0
10.5
100.0
-0.3
-0.8
0.5
1.9
2.7
8.0
11.1
30.1
19.9
8.4
18.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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 the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0013
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000
Distribution of Federal Tax Change by Cash Income Level, 2011 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.1
0.2
0.2
0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.2
9.5
64.7
22.5
3.2
0.0
0.0
0.0
100.0
Average Federal Tax Change
Dollars
0
0
0
0
0
-1
0
0
0
0
0
0
Percent
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.1
0.7
1.4
1.7
1.7
7.4
7.6
21.6
20.1
10.7
27.1
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
2.9
2.7
4.9
6.8
7.3
11.6
15.3
20.9
26.5
28.0
34.4
19.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2011 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,522
6,642
4,651
2,939
2,058
4,144
2,348
2,957
1,037
229
108
29,671
8.5
22.4
15.7
9.9
6.9
14.0
7.9
10.0
3.5
0.8
0.4
100.0
Average
Income
(Dollars)
6,528
15,553
25,360
35,780
46,183
63,809
88,288
145,786
304,965
697,487
3,055,011
72,264
Average
Federal Tax
Burden
(Dollars)
189
417
1,245
2,433
3,361
7,424
13,517
30,474
80,681
194,916
1,049,434
14,068
Average AfterTax Income 4
(Dollars)
6,339
15,135
24,115
33,346
42,821
56,385
74,771
115,312
224,283
502,571
2,005,577
58,196
Average
Federal Tax
Rate 5
2.9
2.7
4.9
6.8
7.3
11.6
15.3
20.9
26.5
28.0
34.4
19.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
4.8
5.5
4.9
4.4
12.3
9.7
20.1
14.8
7.5
15.3
100.0
0.9
5.8
6.5
5.7
5.1
13.5
10.2
19.8
13.5
6.7
12.5
100.0
0.1
0.7
1.4
1.7
1.7
7.4
7.6
21.6
20.1
10.7
27.1
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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 the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.