17-Jan-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0074
Extend Certain Provisions in 2001-6 Tax Cuts and Repeal Alternative Minimum Tax (AMT)
Distribution of Federal Tax Change by Cash Income Percentile, 2011 1
4
Cash Income
Percentile2,3
Percent of Tax Units
With Tax
Cut
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
Rate6
Change (% Under the
Points)
Proposal
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
17.1
67.8
86.4
97.5
99.1
73.6
1.4
1.0
0.4
0.1
0.2
0.6
0.3
1.7
1.9
2.2
2.4
2.2
0.4
6.0
10.7
20.5
62.3
100.0
-29
-385
-695
-1,328
-4,025
-1,293
-7.4
-16.2
-9.5
-8.2
-6.1
-7.0
0.0
-0.3
-0.2
-0.2
0.7
0.0
0.4
2.3
7.7
17.2
72.2
100.0
-0.3
-1.6
-1.6
-1.8
-1.7
-1.7
3.7
8.2
15.2
19.6
26.6
22.3
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
99.1
98.8
98.9
98.8
99.1
0.3
0.4
0.4
0.3
0.1
2.1
1.7
1.0
0.8
0.7
39.3
23.8
7.2
4.8
2.3
-5,083
-6,147
-9,325
-12,374
-29,793
-4.9
-3.8
-2.0
-1.6
-1.3
1.2
1.5
1.4
1.2
0.8
56.9
44.9
27.1
22.1
13.5
-1.5
-1.2
-0.7
-0.6
-0.5
28.2
29.7
32.6
33.7
35.7
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2011 1
Cash Income
Percentile2,3
Tax Units4
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
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
30,704
31,300
31,297
31,305
31,299
156,502
19.6
20.0
20.0
20.0
20.0
100.0
9,721
24,460
43,383
75,537
233,599
77,021
392
2,379
7,286
16,125
66,089
18,484
9,329
22,081
36,097
59,412
167,510
58,537
4.0
9.7
16.8
21.4
28.3
24.0
2.5
6.4
11.3
19.6
60.7
100.0
3.1
7.5
12.3
20.3
57.2
100.0
0.4
2.6
7.9
17.5
71.5
100.0
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
15,650
7,825
1,565
783
157
10.0
5.0
1.0
0.5
0.1
346,579
520,288
1,430,531
2,252,206
6,508,651
102,954
160,629
475,852
772,097
2,354,047
243,626
359,659
954,679
1,480,108
4,154,604
29.7
30.9
33.3
34.3
36.2
45.0
33.8
18.6
14.6
8.5
41.6
30.7
16.3
12.6
7.1
55.7
43.5
25.7
20.9
12.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
(1) Calendar year. Baseline is current law. Includes the following provisions: (1) maintain 10-percent bracket; (2) retain 25-percent bracket (don't revert to 28%); (3) maintain maximum child tax credit
(CTC) at $1,000 per child and retain partial refundability; (4) continue current parameters for child and dependent care credit (35% maximum credit, $3,000 maximum qualified expenses per child,
indexed from 2005, and 20% minimum credit); (5) maintain current marriage penalty relief (married filing jointly standard deduction and width of 15% bracket both twice levels for single filers; exten
plateau for earned income tax credit [EITC] on joint returns); (6) allow both EITC and CTC as credits against AMT; (7) use AGI in place of modified AGI for EITC phase-out; and (8) repeal the AMT.
(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) For the income levels at each quintile and the top income percentiles used in this table, see
http://www.taxpolicycenter.org/TaxModel/percentiles.cfm
(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.