19-Oct-05
Preliminary Results
http://www.taxpolicycenter.org
Table T05-0270
EGTRRA, JGTRRA, and WFTRA Made Permanent
Distribution of Federal Tax Change by Cash Income Percentile, 2010
Cash Income
Percentile 2
Percent of Tax Units
With Tax
Cut
3
With Tax
Increase
Percent
Change in
After-Tax
4
Income
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
Change (%
Points)
5
Under the
Proposal
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
20.0
72.8
88.4
95.8
93.4
74.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
2.2
2.3
2.2
3.5
2.9
0.5
5.7
9.8
15.2
68.5
100.0
-42
-462
-801
-1,245
-5,595
-1,635
-10.2
-18.3
-11.1
-8.1
-9.1
-9.3
0.0
-0.3
-0.2
0.3
0.2
0.0
0.5
2.6
8.1
17.9
70.9
100.0
-0.4
-1.9
-1.9
-1.7
-2.5
-2.2
3.9
8.6
15.2
19.6
25.3
21.5
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
91.3
91.0
98.2
98.5
99.1
0.0
0.0
0.0
0.0
0.0
3.9
4.5
6.4
7.0
7.5
55.4
46.9
35.9
30.4
18.1
-9,049
-15,329
-58,620
-99,259
-296,406
-9.4
-10.3
-13.5
-14.2
-14.2
-0.1
-0.4
-1.1
-1.1
-0.6
54.8
42.1
23.7
19.0
11.3
-2.8
-3.1
-4.4
-4.7
-4.9
26.4
27.1
27.9
28.4
29.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2010 1
Cash Income
Percentile 2
Tax Units3
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average
After-Tax
Income 4
(Dollars)
Average
Federal Tax
Rate5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
30,240
30,835
30,835
30,831
30,835
154,170
19.6
20.0
20.0
20.0
20.0
100.0
9,537
23,976
42,047
72,549
221,837
73,696
410
2,522
7,197
15,430
61,794
17,497
9,127
21,455
34,850
57,119
160,043
56,199
4.3
10.5
17.1
21.3
27.9
23.7
2.5
6.5
11.4
19.7
60.2
100.0
3.2
7.6
12.4
20.3
57.0
100.0
0.5
2.9
8.2
17.6
70.6
100.0
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
15,417
7,708
1,542
771
154
10.0
5.0
1.0
0.5
0.1
328,475
492,486
1,348,695
2,117,197
6,060,561
95,892
148,985
434,982
701,146
2,094,108
232,583
343,501
913,713
1,416,051
3,966,454
29.2
30.3
32.3
33.1
34.6
44.6
33.4
18.3
14.4
8.2
41.4
30.6
16.3
12.6
7.1
54.8
42.6
24.9
20.0
12.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
(1) Calendar year. Baseline is pre-EGTRRA law. Includes provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the Jobs and Growth Tax Relief
Reconciliation Act of 2003 (JGTRRA), and the Working Families Tax Relief Act of 2004 (WFTRA) affecting the following: marginal tax rates; the 10-percent bracket; the child tax credit;
the child and dependent care credit; the AMT; the personal exemption phaseout (PEP); the limitation on itemized deductions (Pease); the standard deduction, 15-percent bracket, and EITC
for married couples; tax rates on long-term capital gains and dividends; pension and IRA provisions; student loan interest deduction (excludes other education provisions); and estate tax
exemption, rates, and state death tax credit. Assumes all non-AMT provisions, other than the saver's credit, are made permanent, as outlined in the Administration's FY2006 budget
proposal.
(2) Tax units with negative cash income are excluded from the lowest quintile 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. Tax units that are dependents of other taxpayers are excluded from the analysis.
(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.