26-Jan-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 T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
1
Distribution of Federal Tax Change by Cash Income Percentile, 2009
Summary Table
Percent of Tax Units4
Cash Income Percentile
2,3
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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
29.7
77.2
95.3
98.7
97.7
74.9
0.7
2.4
1.1
0.3
0.2
1.0
0.4
1.8
3.0
3.4
2.2
2.5
0.8
6.8
17.7
27.8
46.8
100.0
-45
-455
-1,295
-2,432
-4,627
-1,465
-0.4
-1.6
-2.5
-2.8
-1.7
-2.0
4.2
9.0
14.2
16.5
23.6
19.1
98.9
97.6
94.6
99.2
100.0
0.2
0.2
0.1
0.0
0.0
3.4
2.6
1.7
1.5
1.7
18.3
9.4
8.7
10.6
5.3
-3,568
-3,793
-4,278
-20,559
-101,233
-2.6
-2.0
-1.3
-1.1
-1.1
18.7
20.7
23.7
28.4
30.2
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Number of AMT Taxpayers (millions). Baseline: 4.4
Proposal: 8.9
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of
the provisions until filing their 2009 tax returns in April of 2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates
from 10 and 15 percent to 5 and 10 percent; exclude unemployment compensation from gross income; provide a $20,000 deduction against income from a small
business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the limitation on expensing of certain depreciable
business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are
assumed to be the same as in the House Ways and Means Committee proposal).
(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 2008 dollars): 20% $18,981, 40% $37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918, 99% $603,402, 99.9% $2,871,682.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile, 2009 1
Detail Table
4
Percent of Tax Units
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
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
29.7
77.2
95.3
98.7
97.7
74.9
0.7
2.4
1.1
0.3
0.2
1.0
0.4
1.8
3.0
3.4
2.2
2.5
0.8
6.8
17.7
27.8
46.8
100.0
-45
-455
-1,295
-2,432
-4,627
-1,465
-9.1
-15.3
-15.0
-14.4
-6.6
-9.3
0.0
-0.3
-0.7
-1.0
2.0
0.0
0.8
3.9
10.3
16.9
68.1
100.0
-0.4
-1.6
-2.5
-2.8
-1.7
-2.0
4.2
9.0
14.2
16.5
23.6
19.1
98.9
97.6
94.6
99.2
100.0
0.2
0.2
0.1
0.0
0.0
3.4
2.6
1.7
1.5
1.7
18.3
9.4
8.7
10.6
5.3
-3,568
-3,793
-4,278
-20,559
-101,233
-12.4
-8.7
-5.0
-3.7
-3.6
-0.5
0.1
0.7
1.6
0.8
13.2
10.0
16.7
28.1
14.3
-2.6
-2.0
-1.3
-1.1
-1.1
18.7
20.7
23.7
28.4
30.2
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, 2009 1
4
Tax Units
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
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
39,102
32,942
30,075
25,152
22,287
150,241
26.0
21.9
20.0
16.7
14.8
100.0
10,744
28,057
51,924
87,992
279,244
75,289
501
2,980
8,665
16,912
70,590
15,841
10,243
25,077
43,259
71,080
208,654
59,448
4.7
10.6
16.7
19.2
25.3
21.0
3.7
8.2
13.8
19.6
55.0
100.0
4.5
9.3
14.6
20.0
52.1
100.0
0.8
4.1
11.0
17.9
66.1
100.0
11,264
5,439
4,454
1,131
114
7.5
3.6
3.0
0.8
0.1
135,143
192,266
340,985
1,889,937
8,929,410
28,893
43,645
85,220
557,948
2,798,291
106,250
148,621
255,765
1,331,989
6,131,119
21.4
22.7
25.0
29.5
31.3
13.5
9.3
13.4
18.9
9.0
13.4
9.1
12.8
16.9
7.8
13.7
10.0
16.0
26.5
13.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Number of AMT Taxpayers (millions). Baseline: 4.4
Proposal: 8.9
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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 2008 dollars): 20% $18,981, 40%
$37,595, 60% $66,354, 80% $111,645, 90% $160,972, 95% $226,918, 99% $603,402, 99.9% $2,871,682.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table
4
Percent of Tax Units
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
Average Federal Tax Rate
Change (%
Points)
6
Under the
Proposal
20.9
71.5
93.5
98.9
98.1
74.9
0.2
3.3
1.1
0.2
0.1
1.0
0.2
1.3
2.7
3.6
2.3
2.5
0.3
4.1
14.1
28.8
52.7
100.0
-18
-289
-1,067
-2,222
-4,074
-1,465
-15.6
-13.4
-14.9
-15.5
-6.9
-9.3
0.0
-0.1
-0.6
-1.2
1.9
0.0
0.1
2.7
8.2
16.0
72.8
100.0
-0.2
-1.2
-2.3
-2.9
-1.7
-2.0
0.9
7.4
13.2
15.8
23.5
19.1
98.9
97.8
96.0
99.0
99.9
0.2
0.1
0.2
0.0
0.0
3.4
2.7
1.9
1.6
1.7
19.9
11.1
10.5
11.3
5.5
-3,062
-3,395
-4,102
-18,178
-89,828
-12.3
-9.1
-5.7
-3.8
-3.7
-0.5
0.0
0.7
1.7
0.9
14.5
11.3
17.7
29.3
14.8
-2.7
-2.1
-1.4
-1.1
-1.1
19.0
20.8
23.3
28.3
30.2
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, 2009 1
4
Tax Units
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
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
32,429
30,972
29,186
28,494
28,475
150,241
21.6
20.6
19.4
19.0
19.0
100.0
10,059
25,261
46,073
76,773
235,357
75,289
112
2,156
7,144
14,372
59,299
15,841
9,946
23,105
38,929
62,401
176,058
59,448
1.1
8.5
15.5
18.7
25.2
21.0
2.9
6.9
11.9
19.3
59.3
100.0
3.6
8.0
12.7
19.9
56.1
100.0
0.2
2.8
8.8
17.2
71.0
100.0
14,316
7,191
5,606
1,362
135
9.5
4.8
3.7
0.9
0.1
115,555
163,422
292,160
1,640,591
7,862,950
24,969
37,374
72,293
482,401
2,460,625
90,585
126,048
219,867
1,158,190
5,402,325
21.6
22.9
24.7
29.4
31.3
14.6
10.4
14.5
19.8
9.4
14.5
10.2
13.8
17.7
8.2
15.0
11.3
17.0
27.6
14.0
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Number of AMT Taxpayers (millions). Baseline: 4.4
Proposal: 8.9
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20091
Detail Table - Single 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
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
23.6
69.9
94.2
99.2
98.6
70.2
0.3
2.1
0.7
0.1
0.1
0.7
0.2
1.5
3.3
3.8
2.5
2.7
0.5
6.6
19.8
30.4
42.6
100.0
-16
-259
-910
-1,662
-2,819
-889
-3.1
-12.5
-15.3
-14.6
-7.1
-9.9
0.1
-0.2
-0.8
-1.1
1.9
0.0
1.7
5.1
12.1
19.6
61.3
100.0
-0.2
-1.4
-2.7
-3.0
-1.9
-2.1
6.5
9.5
15.0
17.7
24.3
19.2
99.1
98.6
97.3
98.8
99.9
0.1
0.1
0.3
0.0
0.0
3.3
2.7
2.2
1.9
1.9
16.4
9.1
9.1
8.1
3.6
-2,052
-2,391
-3,298
-13,827
-69,883
-10.7
-8.5
-6.6
-4.0
-3.6
-0.1
0.2
0.5
1.3
0.7
15.1
10.8
14.2
21.3
10.6
-2.5
-2.1
-1.6
-1.3
-1.3
20.9
22.2
23.2
30.3
33.5
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, 2009 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)
Number
(thousands)
Percent of Total
17,979
14,788
12,570
10,552
8,719
64,958
27.7
22.8
19.4
16.2
13.4
100.0
7,650
19,082
33,514
54,870
151,432
42,053
516
2,070
5,944
11,394
39,641
8,947
7,135
17,012
27,570
43,476
111,791
33,106
4,605
2,193
1,584
338
30
7.1
3.4
2.4
0.5
0.1
82,197
116,199
201,882
1,087,643
5,550,592
19,258
28,145
50,099
343,174
1,927,459
62,938
88,054
151,783
744,469
3,623,133
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
6.7
10.9
17.7
20.8
26.2
21.3
5.0
10.3
15.4
21.2
48.3
100.0
6.0
11.7
16.1
21.3
45.3
100.0
1.6
5.3
12.9
20.7
59.5
100.0
23.4
24.2
24.8
31.6
34.7
13.9
9.3
11.7
13.5
6.1
13.5
9.0
11.2
11.7
5.0
15.3
10.6
13.7
19.9
9.9
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 0308-7).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010.
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude unemployment
compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the limitation on expensing
certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the same as in the House Ways and
Means Committee proposal).
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20091
Detail Table - Married Tax Units Filing Jointly
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 Rate6
Change (%
Points)
Under the
Proposal
24.7
72.5
92.1
99.0
98.2
85.2
0.1
4.0
1.8
0.3
0.1
1.0
0.2
1.0
2.4
3.5
2.3
2.5
0.1
1.8
9.5
28.1
60.5
100.0
-27
-293
-1,225
-2,705
-4,765
-2,404
-23.8
-11.3
-14.7
-16.4
-6.9
-8.8
0.0
0.0
-0.4
-1.3
1.7
0.0
0.0
1.3
5.3
13.9
79.3
100.0
-0.2
-0.9
-2.1
-2.9
-1.7
-1.9
0.7
7.1
12.0
14.8
23.2
19.9
99.2
97.8
96.1
99.3
100.0
0.1
0.1
0.0
0.0
0.0
3.5
2.7
1.8
1.5
1.6
22.6
13.0
11.9
13.1
6.4
-3,702
-3,938
-4,491
-19,461
-94,797
-13.1
-9.4
-5.5
-3.7
-3.7
-0.7
-0.1
0.7
1.8
0.9
14.4
12.1
19.9
33.0
16.4
-2.8
-2.1
-1.4
-1.1
-1.1
18.2
20.3
23.4
27.9
29.5
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, 2009 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)
Number
(thousands)
Percent of Total
6,621
8,578
11,027
14,829
18,163
59,479
11.1
14.4
18.5
24.9
30.5
100.0
13,343
32,397
59,438
93,284
278,505
125,155
114
2,598
8,348
16,516
69,373
27,271
13,229
29,799
51,090
76,768
209,132
97,884
8,717
4,700
3,780
965
97
14.7
7.9
6.4
1.6
0.2
134,567
186,829
332,302
1,813,978
8,464,842
28,163
41,926
82,189
524,949
2,593,652
106,404
144,903
250,113
1,289,030
5,871,189
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
0.9
8.0
14.1
17.7
24.9
21.8
1.2
3.7
8.8
18.6
68.0
100.0
1.5
4.4
9.7
19.6
65.2
100.0
0.1
1.4
5.7
15.1
77.7
100.0
20.9
22.4
24.7
28.9
30.6
15.8
11.8
16.9
23.5
11.1
15.9
11.7
16.2
21.4
9.8
15.1
12.2
19.2
31.2
15.5
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 0308-7).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010.
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude unemployment
compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the limitation on expensing
certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the same as in the House Ways and
Means Committee proposal).
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 20091
Detail Table - Head of Household 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
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
10.6
72.5
94.4
97.6
93.2
60.6
0.1
4.9
0.8
0.2
0.8
1.8
0.1
1.2
2.7
3.1
2.1
1.9
0.6
15.5
34.3
29.7
19.9
100.0
-12
-338
-1,106
-1,885
-2,772
-675
1.3
-19.5
-14.8
-12.8
-6.3
-12.2
-0.8
-0.8
-0.8
-0.2
2.6
0.0
-6.0
8.9
27.6
28.2
41.2
100.0
-0.1
-1.1
-2.2
-2.5
-1.5
-1.7
-6.9
4.7
13.0
16.9
23.0
12.0
94.5
91.8
88.1
97.2
99.9
1.2
0.0
0.0
0.0
0.0
2.6
2.0
1.6
1.5
1.6
10.4
3.0
3.3
3.2
1.5
-2,243
-2,264
-3,289
-15,906
-83,314
-9.1
-6.5
-4.9
-3.6
-3.5
0.5
0.4
0.7
1.1
0.5
14.5
6.0
8.9
11.8
5.7
-2.0
-1.5
-1.2
-1.1
-1.1
20.4
21.8
23.0
28.1
30.0
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, 2009 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)
Number
(thousands)
Percent of Total
7,558
7,198
4,877
2,482
1,128
23,292
32.5
30.9
20.9
10.7
4.8
100.0
12,952
29,592
49,284
75,584
179,427
40,351
-882
1,733
7,489
14,690
43,973
5,518
13,834
27,859
41,794
60,895
135,454
34,834
730
209
158
31
3
3.1
0.9
0.7
0.1
0.0
109,967
149,881
276,495
1,510,258
7,770,538
24,664
34,888
66,789
440,843
2,410,859
85,303
114,993
209,705
1,069,416
5,359,679
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-6.8
5.9
15.2
19.4
24.5
13.7
10.4
22.7
25.6
20.0
21.5
100.0
12.9
24.7
25.1
18.6
18.8
100.0
-5.2
9.7
28.4
28.4
38.6
100.0
22.4
23.3
24.2
29.2
31.0
8.6
3.3
4.7
5.0
2.3
7.7
3.0
4.1
4.1
1.8
14.0
5.7
8.2
10.7
5.2
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 0308-7).
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of 2010.
The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude unemployment
compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the limitation on expensing
certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the same as in the House Ways and
Means Committee proposal).
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table - Tax Units with Children
4
Percent of Tax Units
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
5
Income
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
Change (%
Points)
6
Under the
Proposal
12.0
76.0
95.5
98.7
96.2
75.3
0.1
4.8
1.2
0.3
0.2
1.4
0.1
1.3
2.7
3.4
1.9
2.2
0.2
5.0
17.9
32.7
44.1
100.0
-19
-397
-1,382
-2,765
-4,338
-1,676
1.6
-19.6
-14.9
-14.5
-5.5
-8.6
-0.1
-0.3
-0.7
-1.3
2.4
0.0
-1.4
1.9
9.6
18.3
71.5
100.0
-0.1
-1.2
-2.3
-2.7
-1.4
-1.8
-8.8
4.8
12.9
16.2
24.3
18.7
98.0
94.3
93.0
99.1
100.0
0.3
0.2
0.1
0.0
0.0
2.9
1.9
1.4
1.4
1.5
18.7
7.9
7.8
9.8
5.0
-3,511
-3,243
-3,976
-20,852
-109,477
-10.5
-6.4
-3.9
-3.2
-3.4
-0.3
0.3
0.9
1.5
0.7
15.1
10.8
18.0
27.6
13.4
-2.3
-1.5
-1.0
-1.0
-1.1
19.6
21.7
24.9
29.1
30.0
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, 2009 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
9,648
10,138
10,440
9,539
8,194
48,094
20.1
21.1
21.7
19.8
17.0
100.0
14,150
33,628
61,157
101,199
306,666
95,281
-1,220
2,021
9,280
19,123
78,910
19,454
15,370
31,607
51,877
82,075
227,756
75,826
4,292
1,951
1,572
379
37
8.9
4.1
3.3
0.8
0.1
153,064
218,471
392,713
2,144,629
10,295,847
33,503
50,678
101,812
643,884
3,201,837
119,561
167,794
290,901
1,500,746
7,094,010
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.6
6.0
15.2
18.9
25.7
20.4
3.0
7.4
13.9
21.1
54.8
100.0
4.1
8.8
14.9
21.5
51.2
100.0
-1.3
2.2
10.4
19.5
69.1
100.0
21.9
23.2
25.9
30.0
31.1
14.3
9.3
13.5
17.7
8.3
14.1
9.0
12.5
15.6
7.2
15.4
10.6
17.1
26.1
12.6
Average
Federal Tax
6
Rate
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(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.
26-Jan-09
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T09-0048
House Republican Stimulus Proposal
Baseline: Current Law Plus Extension and Indexation of AMT Patch
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2009 1
Detail Table - Elderly Tax Units
4
Percent of Tax Units
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
5
Income
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
Change (%
Points)
6
Under the
Proposal
27.2
56.0
85.4
98.8
99.6
71.4
0.0
0.1
0.2
0.2
0.0
0.1
0.2
0.6
1.3
3.2
2.7
2.4
0.2
2.0
5.2
24.7
67.9
100.0
-15
-114
-512
-1,990
-5,119
-1,499
-6.8
-13.2
-18.5
-23.6
-8.7
-10.8
0.0
0.0
-0.3
-1.6
1.9
0.0
0.3
1.6
2.8
9.7
85.6
100.0
-0.2
-0.5
-1.2
-2.9
-2.1
-2.0
2.1
3.5
5.5
9.2
21.7
16.4
99.6
99.5
99.6
99.8
100.0
0.0
0.0
0.0
0.0
0.0
3.8
3.3
2.5
2.0
2.0
19.3
13.7
16.2
18.7
8.6
-3,312
-3,985
-5,248
-20,516
-93,007
-19.1
-14.3
-8.8
-4.7
-4.3
-1.0
-0.4
0.4
2.9
1.6
9.9
9.9
20.4
45.4
23.3
-3.1
-2.7
-2.0
-1.4
-1.4
13.4
16.2
20.5
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, 2009 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
5,675
7,562
4,371
5,321
5,689
28,639
19.8
26.4
15.3
18.6
19.9
100.0
9,958
21,260
41,175
69,880
246,281
75,721
227
867
2,767
8,443
58,572
13,910
9,731
20,393
38,407
61,437
187,708
61,811
2,500
1,471
1,329
391
40
8.7
5.1
4.6
1.4
0.1
105,353
147,862
266,234
1,451,124
6,768,885
17,386
27,953
59,703
433,670
2,184,145
87,967
119,909
206,532
1,017,454
4,584,740
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
4.1
6.7
12.1
23.8
18.4
2.6
7.4
8.3
17.2
64.6
100.0
3.1
8.7
9.5
18.5
60.3
100.0
0.3
1.7
3.0
11.3
83.7
100.0
16.5
18.9
22.4
29.9
32.3
12.1
10.0
16.3
26.1
12.4
12.4
10.0
15.5
22.5
10.3
10.9
10.3
19.9
42.5
21.7
Average
Federal Tax
6
Rate
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0308-7).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
NOTE: Table shows the impact of the individual income tax measures on 2009 calendar year tax liability. Some individuals may not actually receive the benefits of the provisions until filing their 2009 tax returns in April of
2010. The business tax provisions are measured on a net present value basis.
(1) Calendar year. Baseline is current law plus extension and indexation of the 2008 AMT patch. Proposal would reduce the two lowest individual income tax rates from 10 and 15 percent to 5 and 10 percent; exclude
unemployment compensation from gross income; provide a $20,000 deduction against income from a small business; provide a special allowance for certain property acquired during 2009; allow a temporary increase in the
limitation on expensing of certain depreciable business assets; and provide a 5-year carryback with 10% cutback for 2008 and 2009 NOLs with an exception for TARP recipients (these last three measures are assumed to be the
same as in the House Ways and Means Committee proposal).
(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 2008 dollars): 20% $12,921, 40% $24,393, 60% $41,924, 80% $67,748, 90% $96,780, 95% $137,143, 99% $359,711, 99.9%
$1,730,730.
(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.