6-Aug-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 T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Summary 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
1.0
41.7
74.4
86.5
91.3
96.4
98.8
99.3
99.4
97.0
92.6
73.6
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
2.0
7.0
0.1
Percent
Change in
After-Tax
Income 4
0.1
0.8
2.2
2.4
2.4
2.5
3.0
3.8
3.8
2.1
1.3
2.8
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.0
1.2
4.3
4.7
4.7
11.3
12.1
32.6
18.9
4.4
5.8
100.0
-5
-123
-517
-743
-920
-1,264
-2,131
-4,029
-8,088
-10,752
-27,618
-1,616
Average Federal Tax Rate 5
Change (%
Points)
-0.1
-0.8
-2.0
-2.1
-2.0
-2.0
-2.4
-2.9
-2.7
-1.5
-0.9
-2.1
Under the
Proposal
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.6
27.0
33.0
21.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 19.7
Proposal: 4.3
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than
the high-income provisions. The proposal: retains a 20 percent rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the
proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase); retains the limitation on itemized
deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried
individuals), indexed for inflation after 2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent
bracket to equal $250,000 less the standard deduction and two personal exemptions for married couples, $200,000 less the standard deduction and one personal
exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation
after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 20121
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
1.0
41.7
74.4
86.5
91.3
96.4
98.8
99.3
99.4
97.0
92.6
73.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
2.0
7.0
0.1
Percent Change
in After-Tax
Income 4
0.1
0.8
2.2
2.4
2.4
2.5
3.0
3.8
3.8
2.1
1.3
2.8
Share of Total
Federal Tax
Change
0.0
1.2
4.3
4.7
4.7
11.3
12.1
32.6
18.9
4.4
5.8
100.0
Average Federal Tax Change
Dollars
Percent
-5
-123
-517
-743
-920
-1,264
-2,131
-4,029
-8,088
-10,752
-27,618
-1,616
-1.6
-14.9
-18.6
-13.7
-11.3
-10.1
-10.9
-11.6
-10.0
-5.4
-2.6
-9.0
Share of Federal Taxes
Change (%
Points)
0.0
-0.1
-0.2
-0.2
-0.1
-0.1
-0.2
-0.7
-0.2
0.3
1.4
0.0
Under the
Proposal
0.2
0.7
1.9
2.9
3.6
10.0
9.8
24.8
16.9
7.8
21.3
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.1
-0.8
-2.0
-2.1
-2.0
-2.0
-2.4
-2.9
-2.7
-1.5
-0.9
-2.1
Under the
Proposal
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.6
27.0
33.0
21.4
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
16,958
24,305
21,133
16,074
12,909
22,702
14,431
20,606
5,930
1,048
531
157,348
Percent of
Total
10.8
15.5
13.4
10.2
8.2
14.4
9.2
13.1
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,723
15,533
25,808
36,190
46,615
64,099
90,195
141,257
296,062
704,969
3,114,004
76,169
Average
Federal Tax
Burden
(Dollars)
309
827
2,782
5,420
8,151
12,584
19,596
34,801
80,879
200,825
1,053,850
17,891
Average AfterTax Income 4
(Dollars)
5,414
14,706
23,026
30,770
38,464
51,516
70,599
106,456
215,183
504,145
2,060,154
58,277
Average
Federal Tax
Rate 5
5.4
5.3
10.8
15.0
17.5
19.6
21.7
24.6
27.3
28.5
33.8
23.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.2
4.6
4.9
5.0
12.1
10.9
24.3
14.7
6.2
13.8
100.0
1.0
3.9
5.3
5.4
5.4
12.8
11.1
23.9
13.9
5.8
11.9
100.0
0.2
0.7
2.1
3.1
3.7
10.2
10.1
25.5
17.0
7.5
19.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 19.7
Proposal: 4.3
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than the high-income provisions. The proposal: retains a 20 percent
rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase);
retains the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after
2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married
couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation
after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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
0.6
46.8
74.0
91.8
97.2
98.2
98.6
98.5
99.3
97.8
91.3
64.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.2
7.9
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.8
1.6
1.5
1.7
2.0
2.8
3.9
4.9
3.8
1.9
2.3
Share of Total
Federal Tax
Change
0.0
3.1
7.1
6.0
7.0
15.6
12.3
24.2
15.2
4.6
4.8
100.0
Average Federal Tax Change
Dollars
Percent
-1
-113
-344
-427
-632
-960
-1,845
-3,863
-10,425
-17,882
-34,741
-783
-0.3
-8.1
-9.2
-6.3
-6.6
-6.6
-8.0
-10.4
-12.0
-8.1
-3.2
-7.8
Share of Federal Taxes
Change (%
Points)
0.1
0.0
-0.1
0.1
0.1
0.2
0.0
-0.5
-0.5
0.0
0.6
0.0
Under the
Proposal
0.9
3.0
6.0
7.4
8.4
18.7
11.9
17.6
9.4
4.4
12.3
100.0
Average Federal Tax Rate 5
Change (%
Points)
0.0
-0.7
-1.3
-1.2
-1.4
-1.5
-2.1
-2.8
-3.5
-2.6
-1.2
-1.8
Under the
Proposal
8.5
8.4
13.3
17.4
19.3
21.6
23.7
24.2
25.6
29.1
35.5
21.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
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
12,161
14,889
11,204
7,555
6,018
8,766
3,599
3,384
787
138
75
68,932
17.6
21.6
16.3
11.0
8.7
12.7
5.2
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,710
15,384
25,667
36,120
46,555
63,234
89,193
137,406
300,163
697,814
2,972,435
43,878
Average
Federal Tax
Burden
(Dollars)
484
1,400
3,748
6,727
9,624
14,621
22,961
37,156
87,116
220,977
1,090,827
10,087
Average After4
Tax Income
(Dollars)
5,227
13,984
21,919
29,392
36,931
48,614
66,232
100,250
213,047
476,836
1,881,608
33,791
Average
Federal Tax
5
Rate
8.5
9.1
14.6
18.6
20.7
23.1
25.7
27.0
29.0
31.7
36.7
23.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
7.6
9.5
9.0
9.3
18.3
10.6
15.4
7.8
3.2
7.3
100.0
2.7
8.9
10.5
9.5
9.5
18.3
10.2
14.6
7.2
2.8
6.0
100.0
0.9
3.0
6.0
7.3
8.3
18.4
11.9
18.1
9.9
4.4
11.7
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than the high-income provisions. The proposal: retains a 20
percent rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax
increase); retains the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for
inflation after 2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions
for married couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed
for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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
3.2
25.4
62.0
69.3
78.8
93.9
98.8
99.5
99.5
97.0
93.1
83.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.9
6.5
0.1
Percent
Change in
After-Tax
4
Income
0.5
0.7
2.7
3.0
2.8
2.6
3.1
3.8
3.6
1.9
1.3
3.0
Share of Total
Federal Tax
Change
0.0
0.3
1.8
2.5
2.7
8.1
11.8
38.8
22.4
5.0
6.7
100.0
Average Federal Tax Change
Dollars
Percent
-24
-114
-641
-977
-1,136
-1,406
-2,222
-4,131
-7,817
-9,778
-26,459
-2,811
-9.7
-20.6
-35.3
-26.3
-18.9
-13.2
-12.3
-12.0
-9.8
-4.9
-2.6
-9.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
-0.2
-0.1
-0.3
-0.3
-1.0
-0.2
0.4
1.7
0.0
Under the
Proposal
0.0
0.1
0.3
0.7
1.2
5.3
8.4
28.4
20.7
9.6
25.2
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.5
-0.7
-2.5
-2.7
-2.4
-2.2
-2.5
-2.9
-2.7
-1.4
-0.9
-2.2
Under the
Proposal
4.8
2.7
4.5
7.6
10.4
14.2
17.5
21.2
24.4
26.6
32.5
22.3
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
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
2,172
4,097
4,842
4,391
4,095
9,883
9,149
16,193
4,941
876
435
61,357
3.5
6.7
7.9
7.2
6.7
16.1
14.9
26.4
8.1
1.4
0.7
100.0
Average
Income
(Dollars)
4,766
16,031
25,959
36,302
46,760
65,241
90,792
142,545
295,420
706,519
3,075,014
126,020
Average
Federal Tax
Burden
(Dollars)
251
551
1,817
3,720
6,020
10,676
18,065
34,365
79,949
197,906
1,025,293
30,917
Average After4
Tax Income
(Dollars)
4,516
15,480
24,142
32,582
40,740
54,566
72,727
108,180
215,471
508,613
2,049,720
95,103
Average
Federal Tax
5
Rate
5.3
3.4
7.0
10.3
12.9
16.4
19.9
24.1
27.1
28.0
33.3
24.5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.9
1.6
2.1
2.5
8.3
10.7
29.9
18.9
8.0
17.3
100.0
0.2
1.1
2.0
2.5
2.9
9.2
11.4
30.0
18.3
7.6
15.3
100.0
0.0
0.1
0.5
0.9
1.3
5.6
8.7
29.3
20.8
9.1
23.5
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than the high-income provisions. The proposal: retains a 20
percent rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax
increase); retains the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for
inflation after 2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions
for married couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed
for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 2012 1
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
0.5
37.3
86.2
94.8
96.8
98.6
99.4
99.4
99.4
97.4
89.8
72.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.0
9.9
0.1
Percent
Change in
After-Tax
4
Income
0.1
0.9
3.2
3.5
3.2
3.0
3.3
2.8
2.5
1.5
0.9
2.8
Share of Total
Federal Tax
Change
0.1
3.2
15.7
17.4
12.6
22.7
13.0
10.4
3.4
0.8
0.8
100.0
Average Federal Tax Change
Dollars
Percent
-6
-151
-793
-1,109
-1,232
-1,528
-2,237
-2,834
-5,360
-7,503
-18,449
-976
1.1
20.4
-59.5
-24.2
-15.8
-12.2
-11.0
-8.5
-7.0
-4.1
-1.8
-14.4
Share of Federal Taxes
Change (%
Points)
-0.1
-0.9
-2.0
-1.2
-0.2
0.7
0.7
1.2
0.6
0.3
1.0
0.0
Under the
Proposal
-0.9
-3.1
1.8
9.2
11.3
27.4
17.6
18.7
7.5
3.0
7.6
100.0
Average Federal Tax Rate 5
Change (%
Points)
-0.1
-1.0
-3.1
-3.1
-2.7
-2.4
-2.5
-2.1
-1.8
-1.1
-0.6
-2.3
Under the
Proposal
-7.8
-5.7
2.1
9.6
14.1
17.4
20.3
22.9
24.1
25.6
33.6
13.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
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
2,483
5,029
4,757
3,767
2,449
3,559
1,389
877
150
24
11
24,547
10.1
20.5
19.4
15.4
10.0
14.5
5.7
3.6
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,647
15,579
25,971
36,157
46,569
63,082
89,214
132,993
294,130
686,382
2,985,055
41,760
Average
Federal Tax
Burden
(Dollars)
-514
-740
1,333
4,575
7,793
12,486
20,322
33,225
76,181
183,376
1,020,251
6,781
Average After4
Tax Income
(Dollars)
7,161
16,319
24,639
31,582
38,776
50,597
68,891
99,769
217,949
503,006
1,964,805
34,979
Average
Federal Tax
5
Rate
-7.7
-4.8
5.1
12.7
16.7
19.8
22.8
25.0
25.9
26.7
34.2
16.2
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
7.6
12.1
13.3
11.1
21.9
12.1
11.4
4.3
1.6
3.2
100.0
2.1
9.6
13.7
13.9
11.1
21.0
11.2
10.2
3.8
1.4
2.5
100.0
-0.8
-2.2
3.8
10.4
11.5
26.7
17.0
17.5
6.9
2.6
6.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than the high-income provisions. The proposal: retains a 20
percent rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax
increase); retains the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for
inflation after 2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions
for married couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed
for inflation after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 20121
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
1.3
41.1
88.9
96.2
97.3
98.6
99.6
99.8
99.8
97.8
93.0
84.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
6.7
0.1
Percent Change
in After-Tax
Income 4
0.3
1.2
4.2
4.5
4.1
3.6
3.9
4.3
3.6
1.9
1.1
3.4
Share of Total
Federal Tax
Change
0.1
0.9
4.9
5.8
5.0
11.4
13.2
34.7
17.2
3.3
3.6
100.0
Average Federal Tax Change
Dollars
Percent
-19
-200
-1,044
-1,439
-1,604
-1,870
-2,768
-4,551
-7,648
-9,279
-21,204
-2,490
2.7
15.5
-123.2
-34.2
-21.5
-15.5
-14.2
-13.0
-9.4
-4.4
-2.0
-11.0
Share of Federal Taxes
Change (%
Points)
0.0
-0.2
-0.5
-0.5
-0.3
-0.4
-0.4
-0.7
0.4
0.6
2.0
0.0
Under the
Proposal
-0.2
-0.9
-0.1
1.4
2.3
7.7
9.8
28.6
20.4
8.9
22.0
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.3
-1.3
-4.0
-4.0
-3.4
-2.9
-3.1
-3.2
-2.6
-1.3
-0.7
-2.6
Under the
Proposal
-11.6
-9.4
-0.8
7.6
12.5
15.9
18.4
21.4
25.1
28.4
34.0
21.1
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,968
5,639
5,683
4,891
3,849
7,425
5,841
9,319
2,750
441
206
49,155
6.0
11.5
11.6
10.0
7.8
15.1
11.9
19.0
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
6,252
15,769
25,918
36,161
46,701
64,368
90,740
142,137
293,742
705,334
3,105,769
95,419
Average
Federal Tax
Burden
(Dollars)
-706
-1,288
848
4,202
7,461
12,087
19,435
35,024
81,360
209,638
1,078,033
22,663
Average AfterTax Income 4
(Dollars)
6,958
17,057
25,070
31,960
39,239
52,281
71,305
107,114
212,382
495,696
2,027,736
72,756
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
-11.3
-8.2
3.3
11.6
16.0
18.8
21.4
24.6
27.7
29.7
34.7
23.8
0.4
1.9
3.1
3.8
3.8
10.2
11.3
28.2
17.2
6.6
13.7
100.0
0.6
2.7
4.0
4.4
4.2
10.9
11.7
27.9
16.3
6.1
11.7
100.0
-0.2
-0.7
0.4
1.8
2.6
8.1
10.2
29.3
20.1
8.3
19.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than the high-income provisions. The proposal: retains a 20 percent
rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase);
retains the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after
2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married
couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation
after 2009.
(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.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0203
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Level, 20121
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
0.3
14.3
38.3
54.9
65.8
88.6
97.0
98.4
99.1
94.4
91.6
54.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
2.7
8.0
0.1
Percent Change
in After-Tax
Income 4
0.1
0.3
0.8
1.0
1.9
2.2
3.0
4.4
5.1
3.1
2.1
2.8
Share of Total
Federal Tax
Change
0.0
0.5
2.0
1.9
3.4
10.4
10.6
28.1
24.8
7.4
10.9
100.0
Average Federal Tax Change
Dollars
Percent
-4
-43
-202
-323
-793
-1,237
-2,215
-4,932
-11,507
-15,793
-43,240
-1,716
-2.2
-10.0
-15.4
-13.2
-20.4
-16.1
-15.8
-16.4
-14.4
-8.0
-4.1
-11.3
Share of Federal Taxes
Change (%
Points)
0.0
0.0
-0.1
0.0
-0.2
-0.4
-0.4
-1.1
-0.7
0.4
2.5
0.0
Under the
Proposal
0.1
0.6
1.4
1.5
1.7
6.9
7.2
18.2
18.8
10.9
32.7
100.0
Average Federal Tax Rate5
Change (%
Points)
-0.1
-0.3
-0.8
-0.9
-1.7
-1.9
-2.5
-3.5
-3.8
-2.2
-1.4
-2.3
Under the
Proposal
3.1
2.5
4.4
5.9
6.6
10.0
13.2
17.8
22.5
25.7
32.9
17.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,305
6,471
5,084
2,999
2,259
4,405
2,504
2,986
1,128
245
132
30,543
7.6
21.2
16.7
9.8
7.4
14.4
8.2
9.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
6,366
15,655
25,560
36,054
46,537
64,489
89,136
141,589
304,121
709,954
3,095,895
75,737
Average
Federal Tax
Burden
(Dollars)
201
432
1,313
2,440
3,881
7,709
13,994
30,080
80,059
198,145
1,062,757
15,205
Average AfterTax Income 4
(Dollars)
6,166
15,222
24,247
33,614
42,656
56,780
75,141
111,509
224,062
511,809
2,033,137
60,532
Average
Federal Tax
Rate 5
3.2
2.8
5.1
6.8
8.3
12.0
15.7
21.2
26.3
27.9
34.3
20.1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.6
4.7
4.5
12.3
9.7
18.3
14.8
7.5
17.7
100.0
0.8
5.3
6.7
5.5
5.2
13.5
10.2
18.0
13.7
6.8
14.5
100.0
0.1
0.6
1.4
1.6
1.9
7.3
7.6
19.3
19.4
10.5
30.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law, Proposal extends 2009 estate tax law and all the individual income tax provisions in the 2001 and 2003 tax cuts other than the high-income provisions. The proposal: retains a 20 percent
rate on qualified dividends and capital gains for taxpayers in the top 2 tax brackets (because the proposal repeals the lower rates for gains on assets held for 5 years or more, some high-income taxpayers experience a tax increase);
retains the limitation on itemized deductions (Pease) and the personal exemption phaseout (PEP) for taxpayers with income greater than $250,000 for married couples ($200,000 for unmarried individuals), indexed for inflation after
2009; retains a top statutory tax rate of 39.6 percent; retains the 36 percent tax rate and adjusts the threshold for the 36-percent bracket to equal $250,000 less the standard deduction and two personal exemptions for married
couples, $200,000 less the standard deduction and one personal exemption for singles, and an amount equal to the midpoint of the married and single thresholds for heads of household, with the dollar values indexed for inflation
after 2009.
(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.