13-Mar-09
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 T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
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
78.0
88.8
97.2
99.8
97.1
90.8
0.1
0.2
0.1
0.0
2.9
0.5
5.2
4.7
3.8
4.1
2.8
3.5
6.8
12.8
16.0
23.5
40.7
100.0
-576
-1,208
-1,671
-2,914
-5,718
-2,110
-4.9
-4.1
-3.1
-3.2
-2.0
-2.7
0.8
8.4
15.2
18.1
26.0
20.6
99.9
100.0
96.0
58.6
39.5
0.0
0.0
3.9
41.4
60.5
4.7
4.2
3.0
0.3
0.0
17.8
10.9
10.6
1.4
-0.1
-4,952
-6,251
-7,466
-3,890
2,372
-3.5
-3.2
-2.2
-0.2
0.0
20.8
22.3
25.3
32.6
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 19.6
Proposal: 3.2
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion;
creates automatic 401(k)s and IRAs; and extends the American Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal
exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single); imposes a 20 percent rate
on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized
deductions reduce tax liability to 28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the
research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried interest as ordinary income, repealing LIFO, and
implementing international enforcement, reform deferral and other reform policies.
(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% $19,957, 40% $37,919, 60% $66,635, 80% $111,847, 90% $160,851, 95% $224,521, 99% $590,626, 99.9%
$2,706,134.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile, 2012
Detail Table
Percent of Tax Units4
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
78.0
88.8
97.2
99.8
97.1
90.8
0.1
0.2
0.1
0.0
2.9
0.5
5.2
4.7
3.8
4.1
2.8
3.5
6.8
12.8
16.0
23.5
40.7
100.0
-576
-1,208
-1,671
-2,914
-5,718
-2,110
-85.9
-32.7
-16.9
-15.0
-7.3
-11.6
-0.8
-1.1
-0.7
-0.7
3.2
0.0
0.2
3.5
10.3
17.6
68.3
100.0
-4.9
-4.1
-3.1
-3.2
-2.0
-2.7
0.8
8.4
15.2
18.1
26.0
20.6
99.9
100.0
96.0
58.6
39.5
0.0
0.0
3.9
41.4
60.5
4.7
4.2
3.0
0.3
0.0
17.8
10.9
10.6
1.4
-0.1
-4,952
-6,251
-7,466
-3,890
2,372
-14.6
-12.4
-7.9
-0.7
0.1
-0.5
-0.1
0.7
3.1
1.7
13.8
10.1
16.4
28.0
14.2
-3.5
-3.2
-2.2
-0.2
0.0
20.8
22.3
25.3
32.6
35.6
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, 2012 1
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
39,109
35,235
31,797
26,816
23,648
157,316
24.9
22.4
20.2
17.1
15.0
100.0
11,727
29,685
53,843
91,347
279,733
77,851
671
3,696
9,863
19,467
78,501
18,131
11,056
25,988
43,980
71,880
201,232
59,720
5.7
12.5
18.3
21.3
28.1
23.3
3.7
8.5
14.0
20.0
54.0
100.0
4.6
9.8
14.9
20.5
50.7
100.0
0.9
4.6
11.0
18.3
65.1
100.0
11,954
5,808
4,701
1,185
120
7.6
3.7
3.0
0.8
0.1
139,760
197,580
346,049
1,831,745
8,392,568
33,949
50,261
95,151
600,423
2,984,078
105,810
147,320
250,898
1,231,322
5,408,490
24.3
25.4
27.5
32.8
35.6
13.6
9.4
13.3
17.7
8.2
13.5
9.1
12.6
15.5
6.9
14.2
10.2
15.7
24.9
12.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 19.6
Proposal: 3.2
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single);
imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28 percent.
The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried interest as
ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $19,957, 40%
$37,919, 60% $66,635, 80% $111,847, 90% $160,851, 95% $224,521, 99% $590,626, 99.9% $2,706,134.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table
Percent of Tax Units4
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
81.1
83.7
93.7
99.5
97.6
90.8
0.0
0.3
0.1
0.0
2.3
0.5
7.2
5.2
4.0
3.9
2.8
3.5
7.5
12.1
15.0
22.5
42.8
100.0
-768
-1,239
-1,587
-2,479
-4,689
-2,110
-285.7
-40.8
-19.6
-14.9
-7.2
-11.6
-1.0
-1.1
-0.8
-0.7
3.5
0.0
-0.6
2.3
8.2
17.0
73.1
100.0
-7.0
-4.6
-3.3
-3.1
-2.0
-2.7
-4.6
6.7
13.8
17.8
25.8
20.6
99.9
99.7
97.3
63.7
42.3
0.0
0.0
2.7
36.3
57.7
4.0
3.9
3.1
0.5
0.0
16.9
11.4
12.1
2.3
0.0
-3,678
-4,966
-6,746
-5,438
-748
-12.9
-11.6
-8.4
-1.1
0.0
-0.2
0.0
0.6
3.1
1.7
15.0
11.5
17.5
29.1
14.7
-3.1
-2.9
-2.3
-0.3
0.0
20.8
22.5
25.0
32.3
35.4
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, 20121
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
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
32,338
32,399
31,437
30,153
30,278
157,316
20.6
20.6
20.0
19.2
19.3
100.0
10,962
27,043
47,482
79,882
236,122
77,851
269
3,036
8,118
16,663
65,519
18,131
10,693
24,007
39,364
63,218
170,603
59,720
2.5
11.2
17.1
20.9
27.8
23.3
2.9
7.2
12.2
19.7
58.4
100.0
3.7
8.3
13.2
20.3
55.0
100.0
0.3
3.5
9.0
17.6
69.6
100.0
15,269
7,622
5,955
1,432
142
9.7
4.9
3.8
0.9
0.1
119,425
168,851
296,127
1,589,334
7,406,757
28,486
42,886
80,644
518,082
2,622,066
90,940
125,965
215,483
1,071,252
4,784,692
23.9
25.4
27.2
32.6
35.4
14.9
10.5
14.4
18.6
8.6
14.8
10.2
13.7
16.3
7.2
15.3
11.5
16.8
26.0
13.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
Number of AMT Taxpayers (millions). Baseline: 19.6
Proposal: 3.2
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single);
imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28 percent.
The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried interest as
ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $13,636, 40% $25,075, 60% $42,597, 80% $68,949, 90% $98,059, 95% $138,184, 99% $356,154, 99.9%
$1,639,811.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1
Detail Table - Single 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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
76.6
75.1
92.1
99.4
98.4
86.3
0.0
0.4
0.1
0.0
1.3
0.3
4.9
3.2
2.9
2.7
3.5
3.3
7.9
11.6
15.5
18.1
46.9
100.0
-366
-582
-840
-1,224
-3,864
-1,148
-54.2
-23.1
-13.5
-9.7
-8.8
-11.1
-0.8
-0.8
-0.3
0.3
1.6
0.0
0.8
4.8
12.4
20.9
60.9
100.0
-4.5
-2.8
-2.4
-2.1
-2.5
-2.5
3.8
9.4
15.3
19.7
26.2
20.4
99.9
99.2
99.1
70.2
43.8
0.0
0.0
0.9
29.8
56.2
3.6
3.8
4.9
1.8
0.1
14.7
10.3
16.2
5.7
0.2
-2,289
-3,412
-7,279
-12,349
-3,784
-10.6
-10.6
-12.6
-3.3
-0.2
0.1
0.1
-0.2
1.6
1.1
15.5
10.9
14.1
20.5
10.1
-2.7
-2.8
-3.5
-1.2
-0.1
22.5
23.8
24.5
33.7
38.4
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 1
4
Tax Units
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)
Number
(thousands)
Percent of
Total
16,855
15,642
14,507
11,601
9,540
68,506
24.6
22.8
21.2
16.9
13.9
100.0
8,088
20,751
35,163
57,652
153,955
45,237
676
2,524
6,232
12,607
44,125
10,354
7,413
18,227
28,932
45,045
109,830
34,883
5,053
2,377
1,749
362
31
7.4
3.5
2.6
0.5
0.1
86,100
121,430
207,161
1,058,983
5,306,728
21,636
32,297
57,963
369,316
2,041,697
64,464
89,133
149,198
689,667
3,265,032
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
8.4
12.2
17.7
21.9
28.7
22.9
4.4
10.5
16.5
21.6
47.4
100.0
5.2
11.9
17.6
21.9
43.9
100.0
1.6
5.6
12.8
20.6
59.4
100.0
25.1
26.6
28.0
34.9
38.5
14.0
9.3
11.7
12.4
5.4
13.6
8.9
10.9
10.4
4.3
15.4
10.8
14.3
18.8
9.0
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing
carried interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $13,636, 40% $25,075, 60% $42,597, 80% $68,949, 90% $98,059, 95% $138,184, 99% $356,154, 99.9%
$1,639,811.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
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 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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
79.0
87.3
93.4
99.6
97.2
93.6
0.0
0.3
0.2
0.0
2.7
0.9
8.9
6.6
4.7
4.5
2.6
3.5
4.1
8.5
13.2
25.6
48.5
100.0
-1,238
-2,021
-2,438
-3,500
-5,264
-3,381
-258.3
-51.5
-24.2
-17.7
-6.9
-10.8
-0.5
-0.8
-0.9
-1.2
3.4
0.0
-0.3
1.0
5.0
14.5
79.8
100.0
-8.6
-5.8
-3.9
-3.6
-1.9
-2.6
-5.3
5.5
12.3
16.7
25.6
21.7
99.9
100.0
96.7
62.0
42.0
0.0
0.0
3.3
38.1
58.0
4.3
4.0
2.7
0.3
0.0
20.3
13.8
12.7
1.7
0.1
-4,570
-5,802
-6,686
-3,382
-2,082
-14.1
-12.0
-7.3
-0.6
-0.1
-0.6
-0.2
0.7
3.4
1.8
15.0
12.2
19.6
33.0
16.4
-3.3
-3.0
-2.0
-0.2
0.0
20.1
22.0
25.1
31.9
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 1
4
Tax Units
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)
Number
(thousands)
Percent of
Total
6,836
8,755
11,214
15,212
19,110
61,400
11.1
14.3
18.3
24.8
31.1
100.0
14,389
34,618
62,026
97,768
279,599
128,766
479
3,926
10,077
19,789
76,818
31,308
13,910
30,692
51,949
77,978
202,781
97,458
9,202
4,942
3,955
1,011
102
15.0
8.1
6.4
1.7
0.2
138,970
192,850
337,574
1,756,500
7,937,859
32,431
48,251
91,428
563,203
2,762,543
106,540
144,600
246,146
1,193,297
5,175,316
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
3.3
11.3
16.3
20.2
27.5
24.3
1.2
3.8
8.8
18.8
67.6
100.0
1.6
4.5
9.7
19.8
64.8
100.0
0.2
1.8
5.9
15.7
76.4
100.0
23.3
25.0
27.1
32.1
34.8
16.2
12.1
16.9
22.5
10.2
16.4
11.9
16.3
20.2
8.8
15.5
12.4
18.8
29.6
14.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing
carried interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $13,636, 40% $25,075, 60% $42,597, 80% $68,949, 90% $98,059, 95% $138,184, 99% $356,154, 99.9%
$1,639,811.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
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 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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
91.3
96.4
98.4
99.6
97.7
95.4
0.0
0.1
0.0
0.0
2.0
0.1
8.2
6.0
4.4
3.6
2.1
4.8
24.2
30.8
22.4
14.6
7.9
100.0
-1,205
-1,692
-1,863
-2,226
-2,838
-1,672
158.5
-56.8
-20.4
-13.2
-5.8
-25.3
-9.5
-5.8
1.8
4.5
9.0
0.0
-13.4
7.9
29.5
32.4
43.4
100.0
-8.6
-5.4
-3.6
-2.8
-1.5
-4.0
-14.0
4.1
14.1
18.7
25.0
11.8
99.7
99.1
95.0
57.9
36.4
0.0
0.2
5.0
42.1
63.6
2.8
3.0
1.9
0.1
-0.4
4.4
1.8
1.6
0.1
-0.1
-2,468
-3,524
-3,992
-818
16,670
-8.7
-8.8
-5.7
-0.2
0.7
2.8
1.1
1.9
3.1
1.5
15.6
6.3
9.2
12.4
5.8
-2.1
-2.2
-1.4
-0.1
0.2
22.4
23.1
23.8
32.5
35.5
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 1
4
Tax Units
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)
Number
(thousands)
Percent of
Total
8,355
7,578
5,002
2,726
1,153
24,862
33.6
30.5
20.1
11.0
4.6
100.0
13,999
31,423
51,564
78,373
184,854
41,756
-760
2,979
9,121
16,860
49,121
6,618
14,759
28,444
42,443
61,512
135,733
35,138
740
211
169
32
3
3.0
0.9
0.7
0.1
0.0
115,411
158,521
280,025
1,444,013
6,993,121
28,300
40,190
70,657
469,766
2,463,279
87,111
118,332
209,368
974,247
4,529,841
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-5.4
9.5
17.7
21.5
26.6
15.9
11.3
22.9
24.8
20.6
20.5
100.0
14.1
24.7
24.3
19.2
17.9
100.0
-3.9
13.7
27.7
27.9
34.4
100.0
24.5
25.4
25.2
32.5
35.2
8.2
3.2
4.6
4.5
2.0
7.4
2.9
4.1
3.6
1.5
12.7
5.2
7.3
9.3
4.3
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
(1) Calendar year. Baseline is current law. Proposal extends the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000
(single); imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to
28 percent. The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing
carried interest as ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $13,636, 40% $25,075, 60% $42,597, 80% $68,949, 90% $98,059, 95% $138,184, 99% $356,154, 99.9%
$1,639,811.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Tax Units with Children
Percent of Tax Units4
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Average Federal Tax Rate 6
Under the
Proposal
Change (%
Points)
Under the
Proposal
94.6
99.4
99.8
100.0
96.0
98.0
0.0
0.1
0.0
0.0
4.0
0.7
9.9
7.8
5.5
5.4
2.4
4.4
10.8
16.4
18.7
26.8
27.2
100.0
-1,590
-2,476
-2,864
-4,400
-5,497
-3,218
170.0
-66.2
-24.4
-18.7
-6.0
-14.5
-2.0
-2.2
-1.3
-1.0
6.5
0.0
-2.9
1.4
9.8
19.7
71.9
100.0
-10.5
-6.9
-4.5
-4.2
-1.7
-3.4
-16.7
3.6
13.9
18.1
27.1
20.0
100.0
100.0
92.2
47.6
30.1
0.0
0.0
7.7
52.4
70.0
4.5
4.1
2.0
-0.1
-0.3
14.0
8.2
5.5
-0.4
-0.4
-5,456
-6,871
-5,691
1,695
17,665
-13.5
-11.6
-5.0
0.2
0.5
0.2
0.4
1.8
4.2
2.0
15.1
10.6
17.7
28.5
13.7
-3.4
-3.0
-1.4
0.1
0.2
21.7
23.1
27.0
33.9
35.9
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, 20121
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)
Number
(thousands)
Percent of Total
10,815
10,484
10,353
9,644
7,855
49,293
21.9
21.3
21.0
19.6
15.9
100.0
15,090
35,679
64,150
105,690
316,419
95,214
-935
3,741
11,754
23,563
91,377
22,259
16,025
31,938
52,396
82,128
225,042
72,956
4,070
1,884
1,523
378
37
8.3
3.8
3.1
0.8
0.1
160,563
227,342
403,939
2,087,355
9,762,184
40,340
59,433
114,831
706,123
3,484,212
120,224
167,909
289,108
1,381,233
6,277,972
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-6.2
10.5
18.3
22.3
28.9
23.4
3.5
8.0
14.2
21.7
53.0
100.0
4.8
9.3
15.1
22.0
49.2
100.0
-0.9
3.6
11.1
20.7
65.4
100.0
25.1
26.1
28.4
33.8
35.7
13.9
9.1
13.1
16.8
7.6
13.6
8.8
12.2
14.5
6.4
15.0
10.2
15.9
24.3
11.7
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
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 the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single);
imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28 percent.
The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried interest as
ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $13,636, 40% $25,075, 60% $42,597, 80% $68,949, 90% $98,059, 95% $138,184, 99% $356,154, 99.9%
$1,639,811.
(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.
13-Mar-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0136
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions, Maintain Estate Tax at 2009 Parameters, Major Corporate Tax Provisions
Baseline: Current Law
1
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012
Detail Table - Elderly Tax Units
Percent of Tax Units4
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
Share of Federal Taxes
Average Federal Tax Change
Dollars
Percent
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
42.8
50.1
72.0
98.4
98.0
73.9
0.0
0.1
0.1
0.1
1.7
0.5
1.4
1.2
1.2
2.6
3.6
3.0
1.0
3.4
4.3
15.9
75.3
100.0
-150
-276
-484
-1,691
-6,252
-2,021
-38.8
-25.4
-20.5
-17.6
-10.4
-11.7
-0.1
-0.2
-0.2
-0.7
1.3
0.0
0.2
1.3
2.2
9.9
86.3
100.0
-1.4
-1.2
-1.2
-2.3
-2.7
-2.4
2.2
3.5
4.6
10.7
23.3
17.9
99.6
99.5
98.9
75.4
53.1
0.0
0.1
1.1
24.6
46.9
4.1
4.6
5.0
1.7
0.5
20.5
16.5
27.1
11.3
1.5
-3,653
-5,532
-9,858
-15,880
-22,582
-18.0
-16.3
-14.4
-3.5
-1.0
-1.0
-0.6
-0.7
3.5
2.3
12.4
11.3
21.3
41.5
21.1
-3.3
-3.6
-3.7
-1.1
-0.4
15.2
18.4
21.9
31.7
35.7
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, 20121
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)
Number
(thousands)
Percent of Total
4,167
7,540
5,432
5,756
7,378
30,291
13.8
24.9
17.9
19.0
24.4
100.0
10,783
23,370
41,368
74,513
232,411
85,420
385
1,088
2,367
9,633
60,422
17,306
10,398
22,282
39,001
64,880
171,990
68,114
3,435
1,827
1,681
434
42
11.3
6.0
5.6
1.4
0.1
109,456
155,369
267,378
1,393,711
6,524,092
20,315
34,044
68,371
457,846
2,348,994
89,141
121,324
199,006
935,864
4,175,097
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
3.6
4.7
5.7
12.9
26.0
20.3
1.7
6.8
8.7
16.6
66.3
100.0
2.1
8.1
10.3
18.1
61.5
100.0
0.3
1.6
2.5
10.6
85.0
100.0
18.6
21.9
25.6
32.9
36.0
14.5
11.0
17.4
23.4
10.6
14.8
10.7
16.2
19.7
8.5
13.3
11.9
21.9
37.9
18.8
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0309-1).
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 the Making Work Pay Credit, the Earned Income Tax Credit expansion; the Saver's credit expansion; creates automatic 401(k)s and IRAs; and extends the American
Opportunity Tax Credit; reinstates the 36 percent and 39.6 percent rates; reinstates the personal exemption phaseout and limitation on itemized deductions for those taxpayers with AGI over $250,000 (married) and $200,000 (single);
imposes a 20 percent rate on capital gains and qualified dividends for those taxpayers with AGI over $250,000 (married) and $200,000 (single); and limits the tax rate at which itemized deductions reduce tax liability to 28 percent.
The estate tax is maintained at its 2009 parameters. Corporate income tax measures included were making the research and experimentation tax credit permanent; expanding net operating loss carryback, taxing carried interest as
ordinary income, repealing LIFO, and implementing international enforcement, reform deferral and other reform policies.
(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% $13,636, 40% $25,075, 60% $42,597, 80% $68,949, 90% $98,059, 95% $138,184, 99% $356,154, 99.9%
$1,639,811.
(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.