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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
Distribution of Federal Tax Change by Cash Income Percentile, 2012 1
Summary 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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
71.4
77.5
86.6
84.8
58.2
76.0
0.1
0.1
0.1
0.3
15.4
2.4
4.4
2.3
1.5
0.9
-1.7
-0.1
-408.5
-460.8
-447.6
-396.7
1,818.5
100.0
-490
-614
-661
-694
3,609
30
-4.2
-2.1
-1.2
-0.8
1.3
0.0
0.8
8.4
15.2
18.1
26.1
20.6
76.1
66.4
15.8
6.2
0.9
0.5
1.5
51.7
89.2
97.9
0.7
0.3
-1.1
-5.4
-6.6
-189.6
-57.0
278.9
1,786.2
974.7
-744
-461
2,785
70,747
381,878
-0.5
-0.2
0.8
3.9
4.6
20.8
22.3
25.4
32.7
35.7
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: 4.9
Proposal: 3.2
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA;
maintains the estate tax at its 2009 parameters; extends the 2009 AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption
threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
71.4
77.5
86.6
84.8
58.2
76.0
0.1
0.1
0.1
0.3
15.4
2.4
4.4
2.3
1.5
0.9
-1.7
-0.1
-408.5
-460.8
-447.6
-396.7
1,818.5
100.0
-490
-614
-661
-694
3,609
30
-83.6
-19.8
-7.5
-4.0
5.2
0.2
-0.8
-0.9
-0.9
-0.8
3.3
0.0
0.2
3.5
10.3
17.6
68.3
100.0
-4.2
-2.1
-1.2
-0.8
1.3
0.0
0.8
8.4
15.2
18.1
26.1
20.6
76.1
66.4
15.8
6.2
0.9
0.5
1.5
51.7
89.2
97.9
0.7
0.3
-1.1
-5.4
-6.6
-189.6
-57.0
278.9
1,786.2
974.7
-744
-461
2,785
70,747
381,878
-2.5
-1.0
3.3
13.4
14.6
-0.4
-0.1
0.5
3.3
1.8
13.7
10.1
16.4
28.1
14.2
-0.5
-0.2
0.8
3.9
4.6
20.8
22.3
25.4
32.7
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, 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
586
3,104
8,856
17,257
69,307
16,014
11,141
26,580
44,987
74,090
210,426
61,837
5.0
10.5
16.5
18.9
24.8
20.6
3.7
8.5
14.0
20.0
54.0
100.0
4.5
9.6
14.7
20.4
51.2
100.0
0.9
4.3
11.2
18.4
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
29,763
44,515
85,032
527,460
2,614,774
109,996
153,065
261,016
1,304,284
5,777,794
21.3
22.5
24.6
28.8
31.2
13.6
9.4
13.3
17.7
8.2
13.5
9.1
12.6
15.9
7.1
14.1
10.3
15.9
24.8
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 0309-1).
Number of AMT Taxpayers (millions). Baseline: 4.9
Proposal: 3.2
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
76.4
73.9
83.3
87.4
59.6
76.0
0.0
0.2
0.2
0.3
12.0
2.4
5.8
2.4
1.6
1.0
-1.6
-0.1
-432.8
-409.6
-422.7
-431.0
1,800.9
100.0
-628
-593
-631
-671
2,791
30
-485.5
-24.8
-8.8
-4.5
4.8
0.2
-0.8
-0.8
-0.8
-0.8
3.2
0.0
-0.6
2.3
8.1
17.0
73.1
100.0
-5.7
-2.2
-1.3
-0.8
1.2
0.0
-4.6
6.7
13.8
17.8
25.8
20.6
82.6
55.6
18.4
7.1
1.7
0.1
1.5
37.8
86.5
96.7
0.7
0.3
-0.9
-5.2
-6.5
-201.8
-61.0
258.7
1,805.0
1,001.7
-620
-376
2,038
59,164
332,040
-2.4
-1.0
2.8
13.0
14.5
-0.4
-0.1
0.5
3.3
1.8
15.0
11.5
17.5
29.2
14.8
-0.5
-0.2
0.7
3.7
4.5
20.8
22.5
25.0
32.4
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, 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
129
2,392
7,165
14,861
58,147
16,014
10,833
24,650
40,316
65,020
177,975
61,837
1.2
8.9
15.1
18.6
24.6
20.6
2.9
7.2
12.2
19.7
58.4
100.0
3.6
8.2
13.0
20.2
55.4
100.0
0.2
3.1
8.9
17.8
69.9
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
25,444
38,331
71,972
454,939
2,298,277
93,982
130,520
224,155
1,134,396
5,108,481
21.3
22.7
24.3
28.6
31.0
14.9
10.5
14.4
18.6
8.6
14.8
10.2
13.7
16.7
7.4
15.4
11.6
17.0
25.9
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 0309-1).
Number of AMT Taxpayers (millions). Baseline: 4.9
Proposal: 3.2
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
71.0
62.3
78.1
84.2
50.3
69.7
0.0
0.3
0.0
0.0
6.6
1.0
4.6
1.8
1.5
0.9
-1.0
0.5
52.1
47.3
57.5
44.8
-102.2
100.0
-341
-333
-436
-426
1,180
-161
-52.3
-14.6
-7.5
-3.6
3.0
-1.7
-0.9
-0.7
-0.8
-0.4
2.8
0.0
0.8
4.8
12.4
20.9
60.9
100.0
-4.2
-1.6
-1.2
-0.7
0.8
-0.4
3.8
9.4
15.3
19.8
26.2
20.4
78.3
26.6
10.6
5.6
0.8
0.0
0.0
18.6
83.3
96.6
0.5
0.1
-0.4
-4.7
-6.6
16.5
2.3
-8.9
-112.1
-65.0
-359
-108
560
34,154
229,094
-1.8
-0.4
1.1
10.5
12.6
0.0
0.2
0.4
2.3
1.3
15.5
10.9
14.1
20.5
10.1
-0.4
-0.1
0.3
3.2
4.3
22.5
23.8
24.5
33.8
38.5
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
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
651
2,276
5,832
11,814
39,161
9,381
7,438
18,474
29,332
45,838
114,794
35,856
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
19,722
29,028
50,235
323,951
1,815,969
66,378
92,402
156,925
735,032
3,490,759
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
8.1
11.0
16.6
20.5
25.4
20.7
4.4
10.5
16.5
21.6
47.4
100.0
5.1
11.8
17.3
21.7
44.6
100.0
1.7
5.5
13.2
21.3
58.1
100.0
22.9
23.9
24.3
30.6
34.2
14.0
9.3
11.7
12.4
5.4
13.7
8.9
11.2
10.8
4.4
15.5
10.7
13.7
18.2
8.8
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).
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
72.2
75.9
84.0
89.1
65.8
77.0
0.0
0.1
0.4
0.5
14.6
4.8
6.3
3.1
1.7
1.1
-1.7
-0.5
-20.7
-29.1
-35.1
-45.9
231.3
100.0
-894
-984
-925
-892
3,580
482
-652.7
-34.0
-10.8
-5.2
5.3
1.8
-0.4
-0.5
-0.7
-1.1
2.7
0.0
-0.3
1.0
5.0
14.4
79.8
100.0
-6.2
-2.8
-1.5
-0.9
1.3
0.4
-5.3
5.5
12.3
16.7
25.6
21.7
88.0
71.1
22.5
8.0
2.1
0.2
1.8
45.6
87.3
96.6
0.7
0.4
-1.1
-5.3
-6.5
-25.1
-8.7
36.1
228.9
123.6
-805
-519
2,702
66,950
358,177
-2.8
-1.2
3.3
13.5
14.9
-0.7
-0.4
0.3
3.4
1.9
14.9
12.2
19.5
33.1
16.5
-0.6
-0.3
0.8
3.8
4.5
20.1
22.0
25.1
32.0
34.9
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, 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
137
2,893
8,569
17,189
68,096
27,486
14,252
31,725
53,457
80,579
211,503
101,280
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
28,682
43,002
82,153
494,405
2,411,674
110,288
149,848
255,421
1,262,094
5,526,185
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.0
8.4
13.8
17.6
24.4
21.4
1.2
3.8
8.8
18.8
67.6
100.0
1.6
4.5
9.6
19.7
65.0
100.0
0.1
1.5
5.7
15.5
77.1
100.0
20.6
22.3
24.3
28.2
30.4
16.2
12.1
16.9
22.5
10.2
16.3
11.9
16.2
20.5
9.1
15.6
12.6
19.3
29.6
14.6
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 the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
90.4
94.3
95.5
91.4
35.4
90.1
0.0
0.1
0.2
0.0
8.8
0.5
6.7
2.3
1.3
0.9
-1.1
1.8
52.0
32.4
17.5
9.2
-11.3
100.0
-999
-687
-563
-543
1,572
-646
103.4
-34.8
-7.2
-3.6
3.5
-11.5
-7.5
-2.8
1.4
2.7
6.3
0.0
-13.4
7.9
29.5
32.4
43.4
100.0
-7.1
-2.2
-1.1
-0.7
0.9
-1.6
-14.0
4.1
14.1
18.7
25.1
11.9
44.5
30.4
8.7
1.4
0.6
0.0
2.6
38.4
93.6
98.3
0.2
0.2
-0.8
-5.2
-6.5
1.0
0.3
-1.7
-10.9
-5.7
-219
-231
1,638
53,752
314,724
-0.8
-0.6
2.5
12.9
14.5
1.7
0.7
1.3
2.7
1.3
15.6
6.3
9.2
12.4
5.9
-0.2
-0.2
0.6
3.7
4.5
22.4
23.2
23.8
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 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
-966
1,973
7,822
15,181
44,770
5,595
14,965
29,449
43,743
63,191
140,084
36,162
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
26,060
36,925
65,110
416,449
2,173,246
89,350
121,597
214,915
1,027,564
4,819,874
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.9
6.3
15.2
19.4
24.2
13.4
11.3
22.9
24.8
20.6
20.5
100.0
13.9
24.8
24.3
19.2
18.0
100.0
-5.8
10.8
28.1
29.8
37.1
100.0
22.6
23.3
23.3
28.8
31.1
8.2
3.2
4.6
4.5
2.0
7.4
2.9
4.0
3.7
1.6
13.9
5.6
7.9
9.7
4.5
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 0309-1).
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009
AMT Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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)
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
94.1
98.6
98.6
97.0
59.8
91.0
0.0
0.1
0.3
0.7
19.5
3.3
7.5
3.2
1.7
1.1
-2.0
0.1
244.2
204.4
177.9
167.0
-695.5
100.0
-1,223
-1,056
-931
-938
4,797
-110
94.0
-45.5
-9.5
-4.7
5.9
-0.6
-1.4
-1.2
-1.0
-0.8
4.4
0.0
-2.9
1.4
9.8
19.7
71.9
100.0
-8.1
-3.0
-1.5
-0.9
1.5
-0.1
-16.7
3.6
13.9
18.1
27.2
20.0
87.5
50.8
10.9
3.7
0.4
0.2
5.3
70.2
94.7
99.1
0.7
0.2
-1.7
-6.2
-6.9
65.7
12.0
-139.0
-634.3
-314.7
-874
-346
4,943
90,987
464,924
-2.4
-0.7
4.7
14.7
15.3
-0.3
0.0
0.9
3.8
1.9
15.1
10.6
17.7
28.5
13.7
-0.5
-0.2
1.2
4.4
4.8
21.7
23.1
27.0
34.0
36.0
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, 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
-1,302
2,322
9,824
20,106
81,192
19,170
16,391
33,358
54,327
85,585
235,227
76,045
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
35,769
52,936
104,293
618,474
3,048,101
124,794
174,406
299,646
1,468,881
6,714,083
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
-8.6
6.5
15.3
19.0
25.7
20.1
3.5
8.0
14.2
21.7
53.0
100.0
4.7
9.3
15.0
22.0
49.3
100.0
-1.5
2.6
10.8
20.5
67.5
100.0
22.3
23.3
25.8
29.6
31.2
13.9
9.1
13.1
16.8
7.6
13.6
8.8
12.2
14.8
6.6
15.4
10.6
16.8
24.7
11.8
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: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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 T09-0134
Administration's Fiscal Year 2010 Budget Proposals
Major Individual Income Tax Provisions
Baseline: Administration Baseline
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
22.7
18.8
26.7
45.5
34.4
29.7
0.0
0.0
0.1
0.2
10.9
2.7
1.1
0.5
0.4
0.5
-1.5
-0.8
-3.1
-4.7
-5.1
-10.7
123.6
100.0
-118
-100
-151
-298
2,684
529
-33.2
-11.0
-7.4
-3.6
5.2
3.6
-0.1
-0.2
-0.3
-0.7
1.3
0.0
0.2
1.3
2.2
9.9
86.3
100.0
-1.1
-0.4
-0.4
-0.4
1.2
0.6
2.2
3.5
4.6
10.7
23.4
18.0
46.7
35.5
15.2
7.5
0.8
0.0
0.2
26.6
81.5
96.9
0.3
0.2
-0.6
-4.4
-6.0
-6.1
-2.5
13.3
119.0
70.4
-286
-218
1,263
43,887
269,132
-1.7
-0.8
2.2
11.0
13.0
-0.7
-0.5
-0.3
2.8
1.8
12.4
11.3
21.3
41.5
21.1
-0.3
-0.1
0.5
3.2
4.1
15.3
18.4
22.0
31.8
35.8
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, 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
356
916
2,042
8,256
51,674
14,808
10,427
22,454
39,326
66,257
180,737
70,612
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
16,987
28,812
57,452
399,844
2,066,945
92,468
126,556
209,926
993,866
4,457,147
Share of PreTax Income
Share of PostTax Income
Share of
Federal Taxes
Percent of Total
Percent of Total
Percent of Total
3.3
3.9
4.9
11.1
22.2
17.3
1.7
6.8
8.7
16.6
66.3
100.0
2.0
7.9
10.0
17.8
62.3
100.0
0.3
1.5
2.5
10.6
85.0
100.0
15.5
18.5
21.5
28.7
31.7
14.5
11.0
17.4
23.4
10.6
14.9
10.8
16.5
20.2
8.7
13.0
11.7
21.5
38.7
19.3
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).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is the Administration's baseline (extends all of the individual income tax provisions included in 2001 EGTRRA and 2003 JGTRRA; maintains the estate tax at its 2009 parameters; extends the 2009 AMT
Patch and indexes the AMT exemption, rate bracket threshold, and phase-out exemption threshold for inflation). 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.
(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.