21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile, 2012 1 Summary Table Percent of Tax Units4 2,3 Cash Income Percentile With Tax Cut Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Top Quintile All With Tax Increase Percent Change in After-Tax 5 Income Share of Total Federal Tax Change Average Federal Tax Change ($) 6 Average Federal Tax Rate Change (% Points) Under the Proposal 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 19.5 2.9 0.0 0.0 0.0 0.0 -0.4 -0.2 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 779 115 0.0 0.0 0.0 0.0 0.3 0.2 4.6 10.3 16.5 19.5 26.0 21.4 0.0 0.0 0.0 0.0 0.0 0.3 30.5 41.8 67.7 78.7 0.0 0.0 -0.3 -1.0 -0.9 0.1 1.5 19.0 79.5 34.9 1 46 739 12,129 52,808 0.0 0.0 0.2 0.7 0.6 22.0 23.2 25.4 30.9 33.5 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Number of AMT Taxpayers (millions). Baseline: 4.6 Proposal: 3.8 ** This table is part of a series of tables showing the distributional effects of moving incrementally from current policy to current law. For definitions and further information, see “Related Tables: Moving Incrementally from Current Policy to Current Law” at http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=367 (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile, 2012 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 Income5 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 19.5 2.9 0.0 0.0 0.0 0.0 -0.4 -0.2 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 779 115 0.0 0.0 0.0 0.0 1.1 0.7 0.0 0.0 -0.1 -0.1 0.2 0.0 0.8 4.1 10.7 18.0 66.3 100.0 0.0 0.0 0.0 0.0 0.3 0.2 4.6 10.3 16.5 19.5 26.0 21.4 0.0 0.0 0.0 0.0 0.0 0.3 30.5 41.8 67.7 78.7 0.0 0.0 -0.3 -1.0 -0.9 0.1 1.5 19.0 79.5 34.9 1 46 739 12,129 52,808 0.0 0.1 0.9 2.2 1.9 -0.1 -0.1 0.0 0.4 0.2 13.9 10.2 16.0 26.2 13.1 0.0 0.0 0.2 0.7 0.6 22.0 23.2 25.4 30.9 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, 2012 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 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 38,450 34,947 31,868 26,646 23,298 157,348 24.4 22.2 20.3 16.9 14.8 100.0 11,600 28,852 52,224 88,978 280,229 76,169 536 2,970 8,617 17,314 72,034 16,156 11,064 25,882 43,606 71,663 208,196 60,012 4.6 10.3 16.5 19.5 25.7 21.2 3.7 8.4 13.9 19.8 54.5 100.0 4.5 9.6 14.7 20.2 51.4 100.0 0.8 4.1 10.8 18.2 66.0 100.0 11,720 5,734 4,655 1,190 120 7.5 3.6 3.0 0.8 0.1 138,385 196,549 345,574 1,825,188 8,367,274 30,374 45,450 87,146 551,415 2,750,495 108,011 151,098 258,428 1,273,773 5,616,779 22.0 23.1 25.2 30.2 32.9 13.5 9.4 13.4 18.1 8.4 13.4 9.2 12.7 16.1 7.1 14.0 10.3 16.0 25.8 13.0 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Number of AMT Taxpayers (millions). Baseline: 4.6 Proposal: 3.8 (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $19,356, 40% $37,493, 60% $65,656, 80% $111,659, 90% $161,739, 95% $226,402, 99% $599,181, 99.9% $2,727,123. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.3 2.9 0.0 0.0 0.0 0.0 -0.4 -0.2 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 606 115 0.0 0.0 0.0 0.0 1.0 0.7 0.0 0.0 -0.1 -0.1 0.2 0.0 0.1 2.8 8.5 17.2 71.2 100.0 0.0 0.0 0.0 0.0 0.3 0.2 1.0 8.5 15.1 18.9 25.8 21.4 0.0 0.0 0.0 0.0 0.0 2.3 14.2 38.3 61.9 75.6 0.0 0.0 -0.3 -0.9 -0.9 0.2 1.1 20.6 78.2 35.5 2 26 629 9,878 45,198 0.0 0.1 0.9 2.1 1.9 -0.1 -0.1 0.0 0.4 0.2 15.2 11.5 17.2 27.2 13.6 0.0 0.0 0.2 0.6 0.6 22.1 23.3 25.2 30.6 33.2 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, 2012 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 31,706 32,349 31,237 29,980 29,936 157,348 20.2 20.6 19.9 19.1 19.0 100.0 10,935 26,208 46,322 77,565 235,547 76,169 114 2,221 7,000 14,691 60,264 16,156 10,821 23,987 39,322 62,875 175,283 60,012 1.0 8.5 15.1 18.9 25.6 21.2 2.9 7.1 12.1 19.4 58.8 100.0 3.6 8.2 13.0 20.0 55.6 100.0 0.1 2.8 8.6 17.3 71.0 100.0 15,019 7,540 5,940 1,436 142 9.6 4.8 3.8 0.9 0.1 117,658 167,170 294,212 1,584,726 7,360,192 25,937 38,973 73,641 475,691 2,400,885 91,720 128,197 220,571 1,109,035 4,959,308 22.0 23.3 25.0 30.0 32.6 14.7 10.5 14.6 19.0 8.7 14.6 10.2 13.9 16.9 7.5 15.3 11.6 17.2 26.9 13.5 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Number of AMT Taxpayers (millions). Baseline: 4.6 Proposal: 3.8 (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9% $1,670,467. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1 Detail Table - Single Tax Units 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 Income5 Share of Total Federal Tax Change Average Federal Tax Change Dollars Share of Federal Taxes Change (% Points) Percent Under the Proposal 6 Average Federal Tax Rate Change (% Points) Under the Proposal 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.5 0.8 0.0 0.0 0.0 0.0 -0.2 -0.1 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 199 28 0.0 0.0 0.0 0.0 0.5 0.3 0.0 0.0 0.0 -0.1 0.1 0.0 1.6 5.1 12.5 20.7 60.0 100.0 0.0 0.0 0.0 0.0 0.1 0.1 7.1 10.7 17.1 21.0 26.9 21.6 0.0 0.0 0.0 0.0 0.0 0.0 0.2 18.7 52.8 70.7 0.0 0.0 -0.1 -0.6 -0.8 0.0 0.0 12.2 87.8 45.6 0 0 130 4,633 27,408 0.0 0.0 0.3 1.4 1.5 -0.1 0.0 0.0 0.2 0.1 15.6 10.8 14.5 19.2 9.1 0.0 0.0 0.1 0.4 0.5 23.9 25.0 25.7 32.7 35.9 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Baseline Distribution of Income and Federal Taxes by Cash Income Percentile Adjusted for Family Size, 2012 1 4 Tax Units 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 16,972 15,474 14,005 11,543 9,596 68,932 24.6 22.5 20.3 16.8 13.9 100.0 8,380 19,970 34,261 55,833 151,979 43,878 595 2,136 5,846 11,723 40,629 9,444 7,786 17,834 28,416 44,110 111,349 34,433 5,066 2,373 1,795 361 32 7.4 3.4 2.6 0.5 0.1 84,037 119,032 204,548 1,060,631 5,243,107 20,048 29,751 52,484 342,027 1,855,698 63,990 89,280 152,064 718,604 3,387,408 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 7.1 10.7 17.1 21.0 26.7 21.5 4.7 10.2 15.9 21.3 48.2 100.0 5.6 11.6 16.8 21.5 45.0 100.0 1.6 5.1 12.6 20.8 59.9 100.0 23.9 25.0 25.7 32.3 35.4 14.1 9.3 12.1 12.7 5.5 13.7 8.9 11.5 10.9 4.5 15.6 10.9 14.5 19.0 9.0 Average Federal Tax Rate6 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9% $1,670,467. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1 Detail Table - Married Tax Units Filing Jointly 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 Income5 Share of Total Federal Tax Change Average Federal Tax Change Dollars Share of Federal Taxes Change (% Points) Percent Under the Proposal 6 Average Federal Tax Rate Change (% Points) Under the Proposal 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 20.8 6.3 0.0 0.0 0.0 0.0 -0.4 -0.3 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 831 252 0.0 0.0 0.0 0.0 1.2 0.9 0.0 0.0 -0.1 -0.1 0.2 0.0 0.1 1.4 5.4 14.9 78.2 100.0 0.0 0.0 0.0 0.0 0.3 0.2 0.8 7.9 13.5 17.8 25.5 22.2 0.0 0.0 0.0 0.0 0.0 3.5 21.1 48.4 65.0 77.3 0.0 0.0 -0.4 -1.0 -0.9 0.2 1.2 22.0 76.6 33.2 3 38 876 11,660 50,146 0.0 0.1 1.0 2.3 2.0 -0.1 -0.1 0.0 0.4 0.2 15.3 12.4 19.3 31.2 15.4 0.0 0.0 0.3 0.7 0.6 21.3 22.8 25.2 30.1 32.7 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, 2012 1 4 Tax Units 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 6,622 8,956 11,470 15,032 18,609 61,357 10.8 14.6 18.7 24.5 30.3 100.0 14,526 33,405 59,671 95,023 281,842 126,020 118 2,624 8,078 16,945 71,134 27,671 14,408 30,780 51,593 78,078 210,709 98,349 8,860 4,843 3,890 1,015 102 14.4 7.9 6.3 1.7 0.2 138,312 192,091 337,723 1,748,464 7,890,377 29,506 43,780 84,063 515,366 2,528,835 108,806 148,311 253,660 1,233,098 5,361,542 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 0.8 7.9 13.5 17.8 25.2 22.0 1.2 3.9 8.9 18.5 67.8 100.0 1.6 4.6 9.8 19.5 65.0 100.0 0.1 1.4 5.5 15.0 78.0 100.0 21.3 22.8 24.9 29.5 32.1 15.9 12.0 17.0 23.0 10.5 16.0 11.9 16.4 20.8 9.1 15.4 12.5 19.3 30.8 15.3 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 0509-5). (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9% $1,670,467. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 1 Detail Table - Head of Household Tax Units 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 Income5 Share of Total Federal Tax Change Average Federal Tax Change Dollars Share of Federal Taxes Change (% Points) Percent Under the Proposal 6 Average Federal Tax Rate Change (% Points) Under the Proposal 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.3 0.2 0.0 0.0 0.0 0.0 -0.2 0.0 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 269 14 0.0 0.0 0.0 0.0 0.6 0.2 0.0 0.0 -0.1 -0.1 0.1 0.0 -5.3 9.6 27.5 29.5 38.6 100.0 0.0 0.0 0.0 0.0 0.2 0.0 -7.2 6.0 15.3 19.7 24.8 13.9 0.0 0.0 0.0 0.0 0.0 0.0 3.2 14.0 64.2 76.9 0.0 0.0 -0.2 -0.8 -0.9 0.0 0.2 18.1 81.7 35.2 0 3 351 8,255 40,393 0.0 0.0 0.5 1.9 1.8 0.0 0.0 0.0 0.2 0.1 14.5 5.9 8.0 10.2 4.8 0.0 0.0 0.1 0.6 0.6 22.8 23.3 23.7 30.9 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, 2012 1 4 Tax Units 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 7,840 7,497 5,095 2,777 1,242 24,547 31.9 30.5 20.8 11.3 5.1 100.0 13,490 30,617 50,275 76,881 178,521 41,760 -966 1,831 7,680 15,125 43,999 5,786 14,455 28,786 42,595 61,756 134,522 35,974 805 232 173 33 3 3.3 0.9 0.7 0.1 0.0 112,763 154,893 278,418 1,423,600 6,950,503 25,734 36,085 65,644 431,181 2,286,326 87,028 118,809 212,774 992,419 4,664,177 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total -7.2 6.0 15.3 19.7 24.7 13.9 10.3 22.4 25.0 20.8 21.6 100.0 12.8 24.4 24.6 19.4 18.9 100.0 -5.3 9.7 27.6 29.6 38.5 100.0 22.8 23.3 23.6 30.3 32.9 8.9 3.5 4.7 4.6 2.0 7.9 3.1 4.2 3.7 1.5 14.6 5.9 8.0 10.0 4.7 Average Federal Tax Rate6 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9% $1,670,467. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 24.4 4.1 0.0 0.0 0.0 0.0 -0.5 -0.3 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 1,118 189 0.0 0.0 0.0 0.0 1.4 1.0 0.0 0.0 -0.1 -0.2 0.3 0.0 -1.3 2.2 10.0 19.9 69.2 100.0 0.0 0.0 0.0 0.0 0.4 0.2 -8.9 6.1 15.4 19.4 26.8 21.0 0.0 0.0 0.0 0.0 0.0 7.3 39.1 41.1 78.7 84.5 0.0 -0.1 -0.5 -1.2 -1.1 0.3 1.8 26.6 71.3 27.2 6 85 1,578 17,711 70,016 0.0 0.2 1.5 2.7 2.1 -0.2 -0.1 0.1 0.4 0.1 15.9 10.8 17.0 25.6 12.2 0.0 0.0 0.4 0.9 0.7 22.6 23.9 26.7 32.3 33.9 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 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 10,133 10,359 10,251 9,800 8,315 49,155 20.6 21.1 20.9 19.9 16.9 100.0 14,723 34,672 62,298 103,142 306,063 95,419 -1,303 2,103 9,603 19,996 80,975 19,886 16,026 32,569 52,695 83,146 225,087 75,533 4,398 1,976 1,567 374 36 9.0 4.0 3.2 0.8 0.1 157,496 224,546 400,356 2,088,455 9,839,694 35,649 53,580 105,202 657,137 3,266,702 121,846 170,966 295,153 1,431,317 6,572,992 1 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total -8.9 6.1 15.4 19.4 26.5 20.8 3.2 7.7 13.6 21.6 54.3 100.0 4.4 9.1 14.6 22.0 50.4 100.0 -1.4 2.2 10.1 20.1 68.9 100.0 22.6 23.9 26.3 31.5 33.2 14.8 9.5 13.4 16.7 7.6 14.4 9.1 12.5 14.4 6.4 16.0 10.8 16.9 25.1 12.0 Average Federal Tax Rate6 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Note: Tax units with children are those claiming an exemption for children at home or away from home. (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9% $1,670,467. (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. 21-Jul-10 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T10-0161 Incremental Effects of Allowing the 2001 and 2003 Tax Cuts to Sunset Restore Personal Exemption Phaseout and Limitation on Itemized Deductions Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2012 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 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13.7 2.5 0.0 0.0 0.0 0.0 -0.3 -0.2 0.0 0.0 0.0 0.0 100.0 100.0 0 0 0 0 494 91 0.0 0.0 0.0 0.0 0.8 0.7 0.0 0.0 0.0 -0.1 0.1 0.0 0.3 1.7 3.6 10.4 84.0 100.0 0.0 0.0 0.0 0.0 0.2 0.1 2.5 3.8 6.1 11.3 24.5 18.2 0.0 0.0 0.0 0.0 0.0 0.4 5.1 35.0 46.8 67.3 0.0 0.0 -0.1 -0.6 -0.7 0.0 0.3 13.6 86.1 46.8 0 6 272 5,511 30,624 0.0 0.0 0.4 1.3 1.4 -0.1 -0.1 -0.1 0.3 0.2 10.0 9.5 20.8 43.7 21.8 0.0 0.0 0.1 0.4 0.5 16.4 19.2 23.4 30.3 33.2 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, 2012 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 5,016 8,213 5,981 5,495 5,617 30,543 16.4 26.9 19.6 18.0 18.4 100.0 10,899 22,528 41,094 70,238 257,048 75,737 271 860 2,493 7,965 62,349 13,674 10,628 21,668 38,601 62,273 194,699 62,063 2,427 1,362 1,394 434 42 8.0 4.5 4.6 1.4 0.1 105,444 153,103 267,882 1,396,961 6,520,091 17,322 29,419 62,292 417,897 2,135,106 88,122 123,684 205,590 979,064 4,384,985 1 Share of PreTax Income Percent of Total Share of PostTax Income Percent of Total Share of Federal Taxes Percent of Total 2.5 3.8 6.1 11.3 24.3 18.1 2.4 8.0 10.6 16.7 62.4 100.0 2.8 9.4 12.2 18.1 57.7 100.0 0.3 1.7 3.6 10.5 83.9 100.0 16.4 19.2 23.3 29.9 32.8 11.1 9.0 16.1 26.2 12.0 11.3 8.9 15.1 22.4 9.8 10.1 9.6 20.8 43.4 21.7 Average Federal Tax Rate6 Addendum 80-90 90-95 95-99 Top 1 Percent Top 0.1 Percent Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5). Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older. (1) Calendar year. Baseline is current policy (extension of the 2001-2003 tax cuts and patching AMT using 2009 parameters indexed for inflation) plus estate tax at current law level— a 55 percent top tax rate and a $1 million exemption, not indexed); top two tax brackets raised to 36 and 39.6 percent. Policy is restoration of the personal exemption phaseout (PEP) and the limitation on itemized deductions (Pease). (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% $13,219, 40% $24,782, 60% $41,864, 80% $68,188, 90% $97,830, 95% $138,709, 99% $361,983, 99.9% $1,670,467. (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.