4-Feb-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 T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2011 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
70.0
76.8
85.0
88.3
61.9
75.6
0.0
0.0
0.0
0.0
0.0
0.0
2.6
1.5
1.1
0.8
0.2
0.7
16.2
20.9
23.1
24.0
15.5
100.0
-259
-359
-439
-546
-402
-385
-2.5
-1.4
-0.9
-0.7
-0.2
-0.5
1.7
7.9
14.4
18.3
24.4
19.8
78.5
75.2
18.1
7.8
3.0
0.0
0.0
0.0
0.0
0.0
0.5
0.3
0.0
0.0
0.0
11.4
3.4
0.6
0.1
0.0
-584
-361
-82
-49
-23
-0.4
-0.2
0.0
0.0
0.0
20.6
22.8
24.5
28.3
30.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4.
Number of AMT Taxpayers (millions). Baseline:
4.5
Proposal: 4.5
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for
inflation; makes the 2001 and 2003 individual income tax cuts permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay
Credit through 2011.
(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% $17,709, 40% $34,668, 60% $63,846, 80% $104,388, 90% $167,146, 95% $210,251, 99% $555,037, 99.9% $2,351,648.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2011 1
Detail Table
Percent of Tax Units
4
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
70.0
76.8
85.0
88.3
61.9
75.6
0.0
0.0
0.0
0.0
0.0
0.0
2.6
1.5
1.1
0.8
0.2
0.7
16.2
20.9
23.1
24.0
15.5
100.0
-259
-359
-439
-546
-402
-385
-58.7
-14.8
-6.0
-3.4
-0.6
-2.6
-0.4
-0.5
-0.4
-0.2
1.4
0.0
0.3
3.3
9.9
18.3
68.0
100.0
-2.5
-1.4
-0.9
-0.7
-0.2
-0.5
1.7
7.9
14.4
18.3
24.4
19.8
78.5
75.2
18.1
7.8
3.0
0.0
0.0
0.0
0.0
0.0
0.5
0.3
0.0
0.0
0.0
11.4
3.4
0.6
0.1
0.0
-584
-361
-82
-49
-23
-2.0
-0.8
-0.1
0.0
0.0
0.1
0.2
0.4
0.7
0.3
14.9
11.0
17.1
25.0
12.8
-0.4
-0.2
0.0
0.0
0.0
20.6
22.8
24.5
28.3
30.9
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, 2011 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
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
37,292
34,806
31,498
26,231
22,974
155,368
24.0
22.4
20.3
16.9
14.8
100.0
10,481
26,186
48,373
84,329
267,017
71,667
441
2,427
7,383
15,934
65,613
14,563
10,040
23,759
40,991
68,395
201,404
57,104
4.2
9.3
15.3
18.9
24.6
20.3
3.5
8.2
13.7
19.9
55.1
100.0
4.2
9.3
14.6
20.2
52.2
100.0
0.7
3.7
10.3
18.5
66.6
100.0
11,625
5,563
4,611
1,175
119
7.5
3.6
3.0
0.8
0.1
136,507
191,223
333,276
1,657,137
7,672,765
28,759
43,979
81,842
468,986
2,374,060
107,748
147,243
251,433
1,188,151
5,298,705
21.1
23.0
24.6
28.3
30.9
14.3
9.6
13.8
17.5
8.2
14.1
9.2
13.1
15.7
7.1
14.8
10.8
16.7
24.4
12.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 4.5
Proposal: 4.5
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $17,709, 40%
$34,668, 60% $63,846, 80% $104,388, 90% $167,146, 95% $210,251, 99% $555,037, 99.9% $2,351,648.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
75.6
72.8
82.1
87.5
64.8
75.6
0.0
0.0
0.0
0.0
0.0
0.0
3.0
1.6
1.2
0.9
0.2
0.7
15.1
19.2
22.5
25.5
17.4
100.0
-293
-355
-433
-515
-357
-385
-851.6
-20.0
-7.1
-3.9
-0.6
-2.6
-0.4
-0.5
-0.4
-0.2
1.5
0.0
-0.4
2.1
8.0
17.1
73.0
100.0
-3.0
-1.5
-1.0
-0.7
-0.2
-0.5
-2.6
6.0
13.2
17.3
24.4
19.8
87.0
66.9
20.6
7.8
2.8
0.0
0.0
0.0
0.0
0.0
0.6
0.3
0.0
0.0
0.0
12.1
4.3
0.8
0.1
0.0
-497
-356
-82
-47
-20
-2.0
-1.0
-0.1
0.0
0.0
0.1
0.2
0.5
0.7
0.4
16.1
12.3
18.5
26.2
13.3
-0.4
-0.2
0.0
0.0
0.0
21.2
22.5
24.4
28.2
30.9
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, 2011
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
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
30,760
32,347
31,060
29,561
29,073
155,368
19.8
20.8
20.0
19.0
18.7
100.0
9,877
23,756
42,993
73,609
226,631
71,667
34
1,773
6,116
13,257
55,671
14,563
9,842
21,983
36,877
60,352
170,960
57,104
0.4
7.5
14.2
18.0
24.6
20.3
2.7
6.9
12.0
19.5
59.2
100.0
3.4
8.0
12.9
20.1
56.0
100.0
0.1
2.5
8.4
17.3
71.5
100.0
14,540
7,282
5,823
1,428
142
9.4
4.7
3.8
0.9
0.1
115,046
165,470
286,103
1,431,804
6,683,662
24,891
37,571
69,862
403,411
2,062,101
90,156
127,899
216,242
1,028,393
4,621,561
21.6
22.7
24.4
28.2
30.9
15.0
10.8
15.0
18.4
8.5
14.8
10.5
14.2
16.6
7.4
16.0
12.1
18.0
25.5
12.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 4.5
Proposal: 4.5
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747,
99.9% $1,413,195.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Single Tax Units
Percent of Tax Units
4
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
70.8
61.1
77.5
83.6
57.3
68.8
0.0
0.0
0.0
0.0
0.0
0.0
3.2
1.4
1.1
0.8
0.2
0.8
21.9
21.7
24.9
21.0
10.2
100.0
-227
-235
-303
-329
-189
-251
-42.5
-12.7
-5.9
-3.2
-0.5
-3.0
-0.6
-0.5
-0.4
0.0
1.6
0.0
0.9
4.7
12.5
20.2
61.5
100.0
-3.0
-1.3
-1.0
-0.6
-0.1
-0.6
4.0
8.9
15.2
19.3
25.2
19.8
84.0
38.6
7.9
5.3
0.8
0.0
0.0
0.0
0.0
0.0
0.5
0.1
0.0
0.0
0.0
9.2
0.7
0.2
0.0
0.0
-298
-69
-22
-19
-3
-1.6
-0.3
-0.1
0.0
0.0
0.3
0.2
0.5
0.6
0.3
17.9
8.8
15.0
19.9
9.5
-0.4
-0.1
0.0
0.0
0.0
22.8
23.2
23.9
30.5
34.4
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, 2011 1
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
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
16,453
15,785
14,027
10,881
9,172
67,885
24.2
23.3
20.7
16.0
13.5
100.0
7,653
18,188
31,881
52,390
144,769
40,448
535
1,844
5,159
10,418
36,674
8,263
7,117
16,344
26,722
41,972
108,095
32,185
7.0
10.1
16.2
19.9
25.3
20.4
4.6
10.5
16.3
20.8
48.4
100.0
5.4
11.8
17.2
20.9
45.4
100.0
1.6
5.2
12.9
20.2
60.0
100.0
5,247
1,793
1,749
383
34
7.7
2.6
2.6
0.6
0.1
81,466
114,230
195,211
924,978
4,473,332
18,869
26,620
46,657
282,176
1,538,885
62,597
87,610
148,554
642,802
2,934,447
23.2
23.3
23.9
30.5
34.4
15.6
7.5
12.4
12.9
5.5
15.0
7.2
11.9
11.3
4.5
17.7
8.5
14.6
19.3
9.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747,
99.9% $1,413,195.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units
4
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
70.5
74.2
81.1
89.1
69.9
77.0
0.0
0.0
0.0
0.0
0.0
0.0
3.3
2.0
1.3
0.9
0.2
0.6
7.9
14.4
21.0
31.2
25.0
100.0
-426
-552
-619
-684
-459
-552
-2,469.9
-26.7
-8.8
-4.5
-0.7
-2.2
-0.2
-0.3
-0.4
-0.4
1.2
0.0
-0.2
0.9
4.9
14.7
79.5
100.0
-3.3
-1.8
-1.1
-0.8
-0.2
-0.5
-3.2
5.0
11.6
16.2
24.2
20.7
91.1
79.0
27.1
9.2
3.6
0.0
0.0
0.0
0.0
0.0
0.6
0.3
0.1
0.0
0.0
16.3
7.3
1.3
0.2
0.0
-657
-472
-112
-60
-27
-2.3
-1.1
-0.1
0.0
0.0
0.0
0.2
0.4
0.6
0.3
15.7
14.2
20.7
29.0
14.6
-0.5
-0.3
0.0
0.0
0.0
20.5
22.3
24.6
27.6
30.1
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, 2011 1
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
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
6,220
8,746
11,392
15,301
18,311
60,792
10.2
14.4
18.7
25.2
30.1
100.0
12,978
30,404
55,534
89,245
270,238
119,608
17
2,067
7,065
15,168
65,769
25,294
12,961
28,337
48,469
74,077
204,469
94,314
0.1
6.8
12.7
17.0
24.3
21.2
1.1
3.7
8.7
18.8
68.1
100.0
1.4
4.3
9.6
19.8
65.3
100.0
0.0
1.2
5.2
15.1
78.3
100.0
8,308
5,185
3,832
986
100
13.7
8.5
6.3
1.6
0.2
138,140
184,120
329,973
1,603,838
7,292,608
29,031
41,539
81,257
442,505
2,197,867
109,109
142,581
248,715
1,161,333
5,094,741
21.0
22.6
24.6
27.6
30.1
15.8
13.1
17.4
21.8
10.0
15.8
12.9
16.6
20.0
8.9
15.7
14.0
20.3
28.4
14.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747,
99.9% $1,413,195.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Head of Household Tax Units
Percent of Tax Units
4
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
89.7
95.0
95.6
93.1
43.0
90.4
0.0
0.0
0.0
0.0
0.0
0.0
2.5
1.4
1.0
0.6
0.1
1.0
30.7
33.5
22.8
11.4
1.5
100.0
-327
-378
-380
-345
-113
-344
31.6
-31.9
-5.8
-2.4
-0.3
-7.0
-2.8
-2.0
0.4
1.6
2.8
0.0
-9.7
5.4
28.0
34.3
41.9
100.0
-2.7
-1.4
-0.8
-0.5
-0.1
-0.9
-11.2
2.9
13.3
18.6
23.7
11.9
60.6
23.5
4.5
1.2
0.6
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.0
0.0
1.3
0.1
0.0
0.0
0.0
-162
-50
-16
-4
-2
-0.7
-0.1
0.0
0.0
0.0
0.9
0.6
0.6
0.8
0.4
14.5
7.9
8.5
11.0
5.5
-0.2
0.0
0.0
0.0
0.0
21.9
23.2
22.5
28.5
30.9
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, 2011 1
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
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
7,828
7,381
4,991
2,741
1,111
24,178
32.4
30.5
20.6
11.3
4.6
100.0
12,145
27,927
46,364
74,093
175,378
38,406
-1,034
1,187
6,558
14,135
41,731
4,906
13,179
26,740
39,806
59,958
133,647
33,500
-8.5
4.3
14.2
19.1
23.8
12.8
10.2
22.2
24.9
21.9
21.0
100.0
12.7
24.4
24.5
20.3
18.3
100.0
-6.8
7.4
27.6
32.7
39.1
100.0
682
241
155
32
3
2.8
1.0
0.6
0.1
0.0
106,498
155,730
269,959
1,323,451
6,199,747
23,530
36,178
60,685
376,814
1,912,832
82,968
119,552
209,274
946,637
4,286,916
22.1
23.2
22.5
28.5
30.9
7.8
4.1
4.5
4.6
2.1
7.0
3.6
4.0
3.8
1.7
13.5
7.4
7.9
10.3
5.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747,
99.9% $1,413,195.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Tax Units with Children
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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
94.0
98.6
98.7
98.3
65.6
91.5
0.0
0.0
0.0
0.0
0.0
0.0
2.9
1.8
1.2
0.9
0.2
0.7
16.5
20.9
23.8
25.7
12.8
100.0
-424
-536
-618
-690
-396
-534
31.3
-41.6
-7.4
-3.9
-0.5
-3.0
-0.6
-0.6
-0.4
-0.2
1.8
0.0
-2.1
0.9
9.2
19.3
72.6
100.0
-3.2
-1.7
-1.1
-0.7
-0.1
-0.6
-13.5
2.4
13.4
17.7
25.3
19.4
91.8
63.2
7.5
4.3
0.7
0.0
0.0
0.0
0.0
0.0
0.5
0.2
0.0
0.0
0.0
10.4
2.1
0.2
0.0
0.0
-605
-272
-39
-29
-5
-1.7
-0.6
0.0
0.0
0.0
0.2
0.3
0.5
0.7
0.4
18.4
11.5
18.5
24.2
11.9
-0.4
-0.1
0.0
0.0
0.0
22.0
23.1
26.0
29.3
31.2
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, 2011
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)
1
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
Number
(thousands)
Percent of
Total
10,146
10,182
10,047
9,721
8,416
48,902
20.8
20.8
20.5
19.9
17.2
100.0
13,131
31,660
58,167
96,287
292,032
90,398
-1,354
1,288
8,410
17,705
74,219
18,034
14,484
30,372
49,757
78,583
217,812
72,364
-10.3
4.1
14.5
18.4
25.4
20.0
3.0
7.3
13.2
21.2
55.6
100.0
4.2
8.7
14.1
21.6
51.8
100.0
-1.6
1.5
9.6
19.5
70.8
100.0
4,474
2,031
1,536
376
36
9.2
4.2
3.1
0.8
0.1
160,074
208,849
396,436
1,884,947
9,014,245
35,844
48,556
103,055
551,652
2,812,435
124,230
160,293
293,380
1,333,295
6,201,810
22.4
23.3
26.0
29.3
31.2
16.2
9.6
13.8
16.0
7.4
15.7
9.2
12.7
14.2
6.3
18.2
11.2
17.9
23.5
11.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747,
99.9% $1,413,195.
(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.
4-Feb-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0061
Extend Making Work Pay
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Elderly 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
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
17.1
18.9
29.4
44.3
34.2
28.2
0.0
0.0
0.0
0.0
0.0
0.0
0.6
0.4
0.4
0.4
0.1
0.2
6.2
15.6
20.7
32.4
25.0
100.0
-58
-81
-138
-244
-185
-138
-27.4
-12.0
-7.1
-3.5
-0.3
-1.2
-0.1
-0.2
-0.2
-0.3
0.7
0.0
0.2
1.3
3.2
10.3
84.9
100.0
-0.6
-0.4
-0.4
-0.4
-0.1
-0.2
1.6
2.9
4.8
9.9
22.4
16.5
44.9
39.7
19.0
7.6
0.8
0.0
0.0
0.0
0.0
0.0
0.3
0.2
0.0
0.0
0.0
13.9
7.9
2.7
0.4
0.0
-251
-225
-79
-43
-4
-1.6
-0.8
-0.1
0.0
0.0
-0.1
0.0
0.2
0.5
0.3
9.8
11.3
21.9
41.9
21.4
-0.3
-0.2
0.0
0.0
0.0
15.0
18.0
21.3
28.3
31.7
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, 2011
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
4,348
7,946
6,155
5,447
5,552
29,671
14.7
26.8
20.7
18.4
18.7
100.0
9,801
20,388
38,029
67,549
241,246
72,264
213
674
1,950
6,920
54,194
12,035
9,588
19,714
36,078
60,630
187,052
60,229
2.2
3.3
5.1
10.2
22.5
16.7
2.0
7.6
10.9
17.2
62.5
100.0
2.3
8.8
12.4
18.5
58.1
100.0
0.3
1.5
3.4
10.6
84.3
100.0
2,283
1,440
1,410
418
41
7.7
4.9
4.8
1.4
0.1
101,663
154,504
256,863
1,249,575
5,802,387
15,451
28,029
54,833
353,721
1,836,349
86,212
126,475
202,029
895,854
3,966,038
15.2
18.1
21.4
28.3
31.7
10.8
10.4
16.9
24.4
11.1
11.0
10.2
15.9
21.0
9.1
9.9
11.3
21.7
41.4
21.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Current policy extends the 2009 AMT patch and indexes the AMT exemption, rate bracket threshold, and phaseout exemption threshold for inflation; makes the 2001 and 2003 individual income tax cuts
permanent and makes 2009 estate tax law permanent. The proposal extends the Making Work Pay Credit through 2011.
(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% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747,
99.9% $1,413,195.
(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.