23-Jun-06 Preliminary Results Lowest Quintile Second Quintile

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23-Jun-06
Preliminary Results
http://www.taxpolicycenter.org
Table T06-0183
H.R. 5638 As Amended and Passed by The House, The Permanent Estate Tax Relief Act of 2006
Assuming 15 Percent Capital Gains Rate
Distribution of Federal Tax Change by Cash Income Percentile, 2011 1
3
Cash Income
2
Percentile
Percent of Tax Units
With Tax
Cut
With Tax
Increase
Percent
Change in
After-Tax
4
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 5
Change (%
Points)
Under the
Proposal
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.6
0.4
0.5
0.9
2.1
2.5
92.6
100.0
-5
-10
-23
-27
-1,003
-217
-1.2
-0.4
-0.3
-0.2
-1.6
-1.2
0.0
0.0
0.1
0.2
-0.3
0.0
0.5
3.0
8.4
18.0
70.1
100.0
-0.1
0.0
-0.1
0.0
-0.4
-0.3
4.3
10.5
17.1
21.3
27.1
23.3
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
0.2
0.2
0.4
0.6
0.7
0.0
0.0
0.0
0.0
0.0
0.7
0.8
0.8
0.8
0.6
81.6
62.3
34.4
26.7
11.8
-1,768
-2,698
-7,455
-11,570
-25,595
-1.8
-1.8
-1.7
-1.7
-1.2
-0.3
-0.3
-0.1
-0.1
0.0
54.0
41.7
24.1
19.4
11.5
-0.5
-0.5
-0.5
-0.5
-0.4
28.2
29.0
30.7
31.4
32.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2011 1
Cash Income
2
Percentile
Tax Units3
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average
After-Tax
4
Income
(Dollars)
Average
Federal Tax
5
Rate
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
30,620
31,187
31,196
31,195
31,197
155,984
19.6
20.0
20.0
20.0
20.0
100.0
9,918
24,924
43,588
75,268
230,709
76,577
430
2,636
7,462
16,064
63,413
18,028
9,489
22,287
36,126
59,203
167,296
58,549
4.3
10.6
17.1
21.3
27.5
23.5
2.5
6.5
11.4
19.7
60.3
100.0
3.2
7.6
12.3
20.2
57.2
100.0
0.5
2.9
8.3
17.8
70.4
100.0
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
15,599
7,799
1,560
780
156
10.0
5.0
1.0
0.5
0.1
341,597
511,855
1,399,560
2,196,271
6,282,927
97,934
151,263
436,540
700,793
2,075,072
243,664
360,593
963,020
1,495,478
4,207,855
28.7
29.6
31.2
31.9
33.0
44.6
33.4
18.3
14.3
8.2
41.6
30.8
16.5
12.8
7.2
54.3
42.0
24.2
19.4
11.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0305-3A).
(1) Calendar year. Baseline is current law plus the extension of the lower rates on capital gains and qualifying dividends enacted by JGTRRA. Provisions include: $5 million effective exemption
indexed for inflation after 2010; statutory rate of 15 percent on taxable estate between $5 million and $25 million and 30 percent on taxable estate greater than $25 million; repeal the state death tax
credit (and do not allow a deduction for state estate taxes paid); repeal the 5-percent surtax.
(2) Tax units with negative cash income are excluded from the lowest quintile but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units. Tax units that are dependents of other taxpayers are excluded from the analysis.
(4) 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.
(5) 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.
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