23-Jun-06
Preliminary Results
http://www.taxpolicycenter.org
Table T06-0185
H.R. 5638 As Amended and Passed by The House, The Permanent Estate Tax Relief Act of 2006
Assuming 15 Percent Capital Gains Rate
1
Distribution of Federal Tax Change by Economic Income Percentile, 2011
Economic Income
Percentile2
Percent of Tax Units3
With Tax
Cut
With Tax
Increase
Percent
Change in
After-Tax
Income4
Share of
Total Federal
Tax Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change (%
Points)
Under the
Proposal
Average Federal Tax Rate5
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
0.0
0.0
0.0
0.0
0.5
0.3
0.0
0.0
0.0
0.2
99.6
100.0
0
0
0
-2
-1,079
-217
0.0
0.0
0.0
0.0
-1.7
-1.2
0.0
0.0
0.1
0.2
-0.4
0.0
0.7
3.7
8.9
18.3
68.2
100.0
0.0
0.0
0.0
0.0
-0.4
-0.3
5.3
11.5
16.6
20.9
23.3
20.9
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
0.2
0.3
0.7
0.8
1.1
0.0
0.0
0.0
0.0
0.0
0.7
0.9
0.9
0.9
0.6
97.3
89.8
55.1
41.5
16.4
-2,108
-3,893
-11,939
-17,976
-35,484
-2.2
-2.7
-2.8
-2.6
-1.8
-0.5
-0.6
-0.4
-0.3
-0.1
52.1
40.1
23.2
18.6
10.8
-0.5
-0.6
-0.7
-0.7
-0.5
23.5
23.6
24.4
24.6
24.2
Baseline Distribution of Income and Federal Taxes
1
by Economic Income Percentile, 2011
Economic Income
Percentile2
Tax Units3
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average
After-Tax
Income4
(Dollars)
Average
Federal Tax
Rate5
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
30,250
31,193
31,198
31,196
31,197
155,984
19.4
20.0
20.0
20.0
20.0
100.0
11,711
28,596
47,818
78,017
260,371
85,093
622
3,283
7,916
16,296
61,827
18,028
11,090
25,313
39,902
61,720
198,544
67,065
5.3
11.5
16.6
20.9
23.8
21.2
2.7
6.7
11.2
18.3
61.2
100.0
3.2
7.6
11.9
18.4
59.2
100.0
0.7
3.6
8.8
18.1
68.6
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
395,773
605,989
1,699,070
2,697,930
7,955,580
94,969
146,751
425,877
681,779
1,961,456
300,803
459,238
1,273,194
2,016,151
5,994,124
24.0
24.2
25.1
25.3
24.7
46.5
35.6
20.0
15.9
9.4
44.9
34.2
19.0
15.0
8.9
52.7
40.7
23.6
18.9
10.9
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 economic income are excluded from the lowest income class but are included in the totals. For classifier purposes, economic income has been adjusted for family
size by dividing by the square root of the number of members of the tax unit. For a further description of economic 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.