22-Jun-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0193
Repeal State and Local Tax Deduction and Repeal AMT
1
Distribution of Federal Tax Change by Cash Income Percentile for Joint Tax Units, 2011
Cash Income
Percentile2,3
Percent of Tax Units4
With Tax Cut
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
Rate6
Change (% Under the
Points)
Proposal
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
0.0
0.0
0.4
16.2
13.4
9.3
0.0
1.9
10.9
38.6
73.2
40.2
0.0
0.0
-0.1
-0.2
-1.3
-1.0
0.0
0.1
0.7
2.6
96.6
100.0
0
8
43
98
2,304
932
-0.1
0.6
0.9
0.7
3.5
3.0
0.0
0.0
-0.1
-0.3
0.4
0.0
0.1
0.5
2.4
11.7
85.2
100.0
0.0
0.0
0.1
0.1
1.0
0.8
3.2
4.9
11.1
19.0
28.7
25.6
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
9.1
11.2
9.5
8.7
7.8
82.5
83.1
83.2
83.2
86.1
-1.5
-1.6
-1.9
-1.9
-1.8
83.9
65.8
40.9
31.7
17.0
3,799
5,875
18,387
28,565
76,731
3.7
3.7
4.0
3.8
3.3
0.5
0.4
0.3
0.2
0.1
68.4
53.7
31.7
25.6
15.5
1.1
1.1
1.3
1.3
1.2
30.3
31.5
34.0
34.9
36.8
Baseline Distribution of Income and Federal Taxes
1
by Cash Income Percentile, 2011
Cash Income
Percentile2,3
Tax Units4
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
Number
(thousands)
Percent of
Total
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4,673
7,901
9,885
15,661
24,623
62,978
7.4
12.6
15.7
24.9
39.1
100.0
8,859
25,042
43,520
78,056
240,439
123,574
287
1,217
4,794
14,754
66,778
30,756
8,573
23,826
38,726
63,303
173,661
92,818
3.2
4.9
11.0
18.9
27.8
24.9
0.5
2.5
5.5
15.7
76.1
100.0
0.7
3.2
6.6
17.0
73.2
100.0
0.1
0.5
2.5
11.9
84.9
100.0
Addendum
Top 10 Percent
Top 5 Percent
Top 1 Percent
Top 0.5 Percent
Top 0.1 Percent
12,965
6,578
1,307
652
130
20.6
10.4
2.1
1.0
0.2
347,711
517,283
1,425,392
2,244,771
6,464,618
101,447
156,937
465,629
755,153
2,300,414
246,264
360,345
959,762
1,489,618
4,164,204
29.2
30.3
32.7
33.6
35.6
57.9
43.7
23.9
18.8
10.8
54.6
40.6
21.5
16.6
9.3
67.9
53.3
31.4
25.4
15.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-1).
Number of married AMT Taxpayers (millions). Baseline:
13.1
Proposal:
0.0
(1) Calendar year. Baseline is current law. Proposal repeals the individual AMT and the state and local tax deduction. Taxation of state tax refunds is unaffected. Joint tax units include all tax units filing
a joint return and non-filing units who would file a joint return if they filed.
(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 breaks used in this table are (in 2006 dollars): 20% $15,384, 40% $29,083, 60% $50,348, 80% $89,737, 90% $132,504, 95% $186,771, 99% $447,567, 99.5%
$697,094, 99.9% $1,996,728.
(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.