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 T10-0204
Administration Proposal to Extend All 2001-03 Tax Cuts Other than High Income Provisions
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
24.6
77.9
93.1
98.6
99.1
73.6
0.0
0.0
0.0
0.0
0.3
0.1
0.6
2.3
2.4
3.1
3.0
2.8
1.0
8.0
12.7
22.3
55.9
100.0
-69
-583
-1,016
-2,124
-6,102
-1,616
-0.6
-2.0
-1.9
-2.4
-2.2
-2.1
4.6
10.3
16.4
19.3
26.1
21.4
99.4
99.4
99.3
95.1
82.3
0.0
0.0
0.2
4.4
17.0
3.9
3.8
3.5
1.5
1.1
18.6
12.4
16.1
8.8
2.9
-4,032
-5,508
-8,809
-18,771
-61,510
-2.9
-2.8
-2.6
-1.0
-0.7
21.8
23.0
25.1
31.6
34.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2009 dollars): 20% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate
tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Detail 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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
1
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
24.6
77.9
93.1
98.6
99.1
73.6
0.0
0.0
0.0
0.0
0.3
0.1
0.6
2.3
2.4
3.1
3.0
2.8
1.0
8.0
12.7
22.3
55.9
100.0
-69
-583
-1,016
-2,124
-6,102
-1,616
-11.5
-16.5
-10.6
-11.0
-7.7
-9.0
0.0
-0.4
-0.2
-0.4
1.0
0.0
0.8
4.0
10.7
17.9
66.5
100.0
-0.6
-2.0
-1.9
-2.4
-2.2
-2.1
4.6
10.3
16.4
19.3
26.1
21.4
99.4
99.4
99.3
95.1
82.3
0.0
0.0
0.2
4.4
17.0
3.9
3.8
3.5
1.5
1.1
18.6
12.4
16.1
8.8
2.9
-4,032
-5,508
-8,809
-18,771
-61,510
-11.8
-10.9
-9.2
-3.2
-2.1
-0.4
-0.2
0.0
1.6
1.0
13.8
10.1
15.8
26.8
13.7
-2.9
-2.8
-2.6
-1.0
-0.7
21.8
23.0
25.1
31.6
34.9
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, 2012
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
38,450
34,947
31,868
26,646
23,298
157,348
24.4
22.2
20.3
16.9
14.8
100.0
11,600
28,852
52,224
88,978
280,229
76,169
602
3,545
9,576
19,319
79,171
17,891
10,998
25,307
42,648
69,658
201,058
58,277
5.2
12.3
18.3
21.7
28.3
23.5
3.7
8.4
13.9
19.8
54.5
100.0
4.6
9.6
14.8
20.2
51.1
100.0
0.8
4.4
10.8
18.3
65.5
100.0
11,720
5,734
4,655
1,190
120
7.5
3.6
3.0
0.8
0.1
138,385
196,549
345,574
1,825,188
8,367,274
34,168
50,617
95,612
595,782
2,979,035
104,217
145,932
249,962
1,229,406
5,388,239
24.7
25.8
27.7
32.6
35.6
13.5
9.4
13.4
18.1
8.4
13.3
9.1
12.7
16.0
7.1
14.2
10.3
15.8
25.2
12.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2009 dollars): 20% $19,356, 40%
$37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
21.2
69.4
88.0
98.3
98.8
73.6
0.0
0.0
0.0
0.0
0.2
0.1
1.1
2.7
2.6
2.9
2.9
2.8
1.5
8.0
12.2
20.6
57.6
100.0
-121
-632
-990
-1,749
-4,894
-1,616
-51.9
-22.2
-12.4
-10.7
-7.4
-9.0
-0.1
-0.5
-0.3
-0.3
1.2
0.0
0.1
2.8
8.5
17.1
71.3
100.0
-1.1
-2.4
-2.1
-2.3
-2.1
-2.1
1.0
8.5
15.1
18.9
25.9
21.4
99.0
99.2
99.1
95.2
83.7
0.0
0.0
0.1
3.9
15.6
3.2
3.5
3.5
1.7
1.2
17.0
12.8
17.7
10.1
3.2
-2,876
-4,328
-7,567
-17,910
-56,785
-10.0
-10.1
-9.4
-3.5
-2.2
-0.2
-0.1
-0.1
1.6
1.0
15.1
11.4
17.0
27.8
14.1
-2.4
-2.6
-2.6
-1.1
-0.8
21.9
23.2
24.9
31.3
34.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
Average
Federal Tax
6
Rate
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
31,706
32,349
31,237
29,980
29,936
157,348
20.2
20.6
19.9
19.1
19.0
100.0
10,935
26,208
46,322
77,565
235,547
76,169
233
2,849
7,961
16,390
65,872
17,891
10,702
23,359
38,362
61,176
169,676
58,277
2.1
10.9
17.2
21.1
28.0
23.5
2.9
7.1
12.1
19.4
58.8
100.0
3.7
8.2
13.1
20.0
55.4
100.0
0.3
3.3
8.8
17.5
70.1
100.0
15,019
7,540
5,940
1,436
142
9.6
4.8
3.8
0.9
0.1
117,658
167,170
294,212
1,584,726
7,360,192
28,659
43,024
80,705
513,625
2,600,259
88,999
124,146
213,506
1,071,100
4,759,933
24.4
25.7
27.4
32.4
35.3
14.7
10.5
14.6
19.0
8.7
14.6
10.2
13.8
16.8
7.4
15.3
11.5
17.0
26.2
13.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983,
99.9% $1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single Tax Units
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
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
14.5
58.4
88.1
98.1
98.4
64.7
0.0
0.0
0.0
0.0
0.1
0.0
0.3
1.3
1.6
1.7
3.4
2.3
0.6
6.6
11.9
15.7
65.1
100.0
-20
-232
-459
-734
-3,662
-783
-3.3
-9.8
-7.4
-6.0
-8.4
-7.8
0.1
-0.1
0.1
0.4
-0.4
0.0
1.6
5.1
12.6
20.9
59.6
100.0
-0.2
-1.2
-1.3
-1.3
-2.4
-1.8
7.1
10.7
16.9
20.8
26.2
21.2
98.3
98.6
98.7
96.8
83.8
0.0
0.0
0.0
2.5
15.5
2.7
3.4
4.6
3.0
1.5
15.7
13.0
22.6
13.8
2.8
-1,677
-2,955
-6,791
-20,617
-48,319
-7.9
-9.3
-12.0
-5.6
-2.4
0.0
-0.2
-0.7
0.4
0.5
15.5
10.7
14.0
19.5
9.6
-2.0
-2.5
-3.3
-1.9
-0.9
23.3
24.3
24.4
32.6
37.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
16,972
15,474
14,005
11,543
9,596
68,932
24.6
22.5
20.3
16.8
13.9
100.0
8,380
19,970
34,261
55,833
151,979
43,878
613
2,364
6,243
12,343
43,522
10,087
7,768
17,606
28,019
43,490
108,457
33,791
7.3
11.8
18.2
22.1
28.6
23.0
4.7
10.2
15.9
21.3
48.2
100.0
5.7
11.7
16.9
21.6
44.7
100.0
1.5
5.3
12.6
20.5
60.1
100.0
5,066
2,373
1,795
361
32
7.4
3.4
2.6
0.5
0.1
84,037
119,032
204,548
1,060,631
5,243,107
21,287
31,904
56,631
366,744
2,000,114
62,750
87,128
147,916
693,887
3,242,992
25.3
26.8
27.7
34.6
38.2
14.1
9.3
12.1
12.7
5.5
13.7
8.9
11.4
10.8
4.4
15.5
10.9
14.6
19.0
9.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Married Tax Units Filing Jointly
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
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
28.1
70.4
83.7
98.4
99.1
83.2
0.0
0.0
0.0
0.0
0.2
0.1
2.2
3.4
3.0
3.4
2.8
3.0
1.2
5.2
9.9
22.2
61.4
100.0
-313
-998
-1,495
-2,551
-5,690
-2,811
-73.2
-27.6
-15.6
-13.1
-7.3
-9.1
-0.1
-0.4
-0.4
-0.7
1.5
0.0
0.0
1.4
5.4
14.8
78.3
100.0
-2.2
-3.0
-2.5
-2.7
-2.0
-2.2
0.8
7.8
13.5
17.8
25.8
22.3
99.3
99.5
99.2
94.9
84.1
0.0
0.0
0.1
4.0
15.2
3.5
3.5
3.3
1.4
1.2
18.8
14.2
18.3
10.1
3.6
-3,654
-5,071
-8,100
-17,174
-60,312
-11.0
-10.4
-8.8
-3.1
-2.2
-0.3
-0.2
0.1
2.0
1.1
15.2
12.3
19.1
31.8
15.9
-2.6
-2.6
-2.4
-1.0
-0.8
21.3
22.8
25.0
30.9
34.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
6,622
8,956
11,470
15,032
18,609
61,357
10.8
14.6
18.7
24.5
30.3
100.0
14,526
33,405
59,671
95,023
281,842
126,020
428
3,613
9,569
19,486
78,271
30,917
14,098
29,791
50,102
75,537
203,571
95,103
2.9
10.8
16.0
20.5
27.8
24.5
1.2
3.9
8.9
18.5
67.8
100.0
1.6
4.6
9.9
19.5
64.9
100.0
0.2
1.7
5.8
15.4
76.8
100.0
8,860
4,843
3,890
1,015
102
14.4
7.9
6.3
1.7
0.2
138,312
192,091
337,723
1,748,464
7,890,377
33,151
48,821
92,607
557,591
2,743,674
105,160
143,270
245,116
1,190,874
5,146,703
24.0
25.4
27.4
31.9
34.8
15.9
12.0
17.0
23.0
10.5
16.0
11.9
16.3
20.7
9.0
15.5
12.5
19.0
29.8
14.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Head of Household Tax Units
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
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
29.3
89.3
96.2
99.3
98.9
72.9
0.0
0.0
0.0
0.0
0.1
0.1
1.2
3.7
3.2
2.8
2.2
2.8
5.8
31.8
27.8
19.4
15.2
100.0
-177
-1,015
-1,309
-1,676
-2,930
-976
22.4
-35.7
-14.6
-10.0
-6.2
-14.4
-1.6
-3.2
-0.1
1.4
3.4
0.0
-5.3
9.6
27.5
29.4
38.7
100.0
-1.3
-3.3
-2.6
-2.2
-1.6
-2.3
-7.2
6.0
15.3
19.7
24.9
13.9
99.0
98.5
99.4
95.8
79.3
0.0
0.0
0.2
3.5
20.4
2.5
2.8
2.3
1.2
0.7
7.0
3.1
3.5
1.6
0.4
-2,091
-3,224
-4,819
-11,423
-30,529
-7.5
-8.2
-6.9
-2.5
-1.3
1.1
0.4
0.6
1.3
0.7
14.5
5.8
7.9
10.4
5.0
-1.9
-2.1
-1.7
-0.8
-0.4
22.8
23.2
23.6
31.6
34.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
7,840
7,497
5,095
2,777
1,242
24,547
31.9
30.5
20.8
11.3
5.1
100.0
13,490
30,617
50,275
76,881
178,521
41,760
-789
2,845
8,985
16,783
47,356
6,781
14,279
27,772
41,290
60,099
131,165
34,979
-5.9
9.3
17.9
21.8
26.5
16.2
10.3
22.4
25.0
20.8
21.6
100.0
13.0
24.3
24.5
19.4
19.0
100.0
-3.7
12.8
27.5
28.0
35.3
100.0
805
232
173
33
3
3.3
0.9
0.7
0.1
0.0
112,763
154,893
278,418
1,423,600
6,950,503
27,789
39,119
70,393
461,226
2,450,721
84,974
115,775
208,025
962,374
4,499,782
24.6
25.3
25.3
32.4
35.3
8.9
3.5
4.7
4.6
2.0
8.0
3.1
4.2
3.7
1.5
13.4
5.5
7.3
9.2
4.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by dividing
by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9%
$1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Tax Units with Children
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
37.2
94.4
98.2
99.6
99.6
84.9
0.0
0.0
0.0
0.0
0.3
0.1
2.1
4.6
3.9
4.2
2.8
3.4
2.8
12.1
16.5
27.0
41.5
100.0
-336
-1,433
-1,967
-3,372
-6,114
-2,490
34.7
-40.5
-17.0
-14.4
-6.9
-11.0
-0.5
-1.1
-0.7
-0.8
3.1
0.0
-1.3
2.2
9.9
19.8
69.3
100.0
-2.3
-4.1
-3.2
-3.3
-2.0
-2.6
-8.9
6.1
15.4
19.4
27.0
21.1
99.9
99.8
99.4
94.8
81.0
0.0
0.0
0.3
4.7
18.8
3.7
3.8
2.9
1.2
0.8
15.8
10.2
10.7
5.0
1.6
-4,382
-6,298
-8,337
-16,208
-53,265
-11.0
-10.5
-7.3
-2.3
-1.5
0.0
0.1
0.7
2.3
1.2
15.8
10.7
16.8
26.1
12.6
-2.8
-2.8
-2.1
-0.8
-0.5
22.6
23.9
26.6
33.1
35.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
Average
Federal Tax
6
Rate
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
10,133
10,359
10,251
9,800
8,315
49,155
20.6
21.1
20.9
19.9
16.9
100.0
14,723
34,672
62,298
103,142
306,063
95,419
-967
3,535
11,567
23,356
88,803
22,663
15,690
31,137
50,731
79,785
217,260
72,756
-6.6
10.2
18.6
22.6
29.0
23.8
3.2
7.7
13.6
21.6
54.3
100.0
4.5
9.0
14.5
21.9
50.5
100.0
-0.9
3.3
10.6
20.6
66.3
100.0
4,398
1,976
1,567
374
36
9.0
4.0
3.2
0.8
0.1
157,496
224,546
400,356
2,088,455
9,839,694
40,023
59,858
114,689
706,818
3,520,731
117,473
164,688
285,667
1,381,637
6,318,963
25.4
26.7
28.7
33.8
35.8
14.8
9.5
13.4
16.7
7.6
14.5
9.1
12.5
14.5
6.4
15.8
10.6
16.1
23.7
11.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983,
99.9% $1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
6-Aug-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0204
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Elderly Tax Units
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
4.6
29.6
56.6
95.2
97.6
54.9
0.0
0.0
0.0
0.0
0.3
0.1
0.2
0.7
1.3
2.1
3.9
2.8
0.2
2.3
5.5
13.4
78.5
100.0
-21
-146
-486
-1,282
-7,319
-1,716
-7.3
-14.7
-17.1
-14.2
-10.6
-11.3
0.0
-0.1
-0.2
-0.4
0.7
0.0
0.3
1.7
3.4
10.3
84.2
100.0
-0.2
-0.7
-1.2
-1.8
-2.9
-2.3
2.4
3.8
5.7
11.0
24.0
17.8
97.1
98.3
98.9
94.0
83.8
0.0
0.0
0.0
4.2
15.9
3.8
4.3
5.3
2.8
1.9
15.2
13.5
28.2
21.6
6.4
-3,286
-5,181
-10,591
-26,089
-79,212
-16.7
-15.6
-15.2
-5.7
-3.4
-0.6
-0.5
-0.9
2.7
1.9
9.7
9.3
20.0
45.3
23.3
-3.1
-3.4
-4.0
-1.9
-1.2
15.6
18.3
22.0
30.8
34.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2012
Tax Units4
2,3
Cash Income Percentile
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average After5
Tax Income
(Dollars)
Average
Federal Tax
6
Rate
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Number
(thousands)
Percent of
Total
5,016
8,213
5,981
5,495
5,617
30,543
16.4
26.9
19.6
18.0
18.4
100.0
10,899
22,528
41,094
70,238
257,048
75,737
283
992
2,840
9,009
69,078
15,205
10,616
21,536
38,254
61,229
187,970
60,532
2.6
4.4
6.9
12.8
26.9
20.1
2.4
8.0
10.6
16.7
62.4
100.0
2.9
9.6
12.4
18.2
57.1
100.0
0.3
1.8
3.7
10.7
83.6
100.0
2,427
1,362
1,394
434
42
8.0
4.5
4.6
1.4
0.1
105,444
153,103
267,882
1,396,961
6,520,091
19,712
33,255
69,630
456,038
2,339,269
85,732
119,848
198,252
940,923
4,180,822
18.7
21.7
26.0
32.7
35.9
11.1
9.0
16.1
26.2
12.0
11.3
8.8
15.0
22.1
9.6
10.3
9.8
20.9
42.6
21.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The cash income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2009 dollars): 20% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983,
99.9% $1,670,467.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.