28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
http://www.taxpolicycenter.org
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Summary Table
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units with Tax Increase or Cut 3
With Tax Cut
Pct of Tax Units Avg Tax Cut
With Tax Increase
Pct of Tax Units
Avg Tax
Increase
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate
Change (%
Points)
5
Under the
Proposal
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
2.1
4.3
12.2
20.3
31.2
56.9
92.0
98.7
99.7
99.5
99.9
49.2
257
207
170
214
235
209
267
220
849
4,433
47,011
770
-0.1
-0.1
-0.1
-0.1
-0.2
-0.2
-0.3
-0.2
-0.4
-0.9
-2.2
-0.5
1.6
4.8
6.4
10.1
0.1
0.4
0.7
1.2
13.3
8.3
50.8
100.0
77
122
246
217
6
11
24
47
846
4,409
46,981
380
0.2
0.2
0.3
0.2
0.1
0.1
0.1
0.1
0.3
0.6
1.4
0.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
Number of AMT Taxpayers (millions). Baseline: 4.8 Proposal: 4.8
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the Tax
Decrease Provision Tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.
10.3
13.8
16.3
18.6
4.7
2.4
5.0
8.0
22.9
29.0
36.7
20.4

28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Detail Table
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.1
4.3
12.2
20.3
31.2
56.9
92.0
98.7
99.7
99.5
99.9
49.2
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
-0.1
-0.1
-0.1
-0.1
-0.2
-0.2
-0.3
-0.2
-0.4
-0.9
-2.2
-0.5
1.6
4.8
6.4
10.1
0.1
0.4
0.7
1.2
13.3
8.3
50.8
100.0
Average Federal Tax Change
Dollars Percent
77
122
246
217
6
11
24
47
846
4,409
46,981
380
1.6
1.4
1.7
0.8
2.2
2.8
1.8
1.6
1.3
2.2
4.0
2.0
Share of Federal Taxes
Change (% Points)
Under the
Proposal
0.0
0.0
0.0
-0.3
0.0
0.0
0.0
0.0
-0.2
0.0
0.5
0.0
2.0
7.0
7.7
25.0
0.1
0.3
0.8
1.5
21.4
7.7
26.2
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
0.2
0.2
0.3
0.2
0.1
0.1
0.1
0.1
0.3
0.6
1.4
0.4
10.3
13.8
16.3
18.6
4.7
2.4
5.0
8.0
22.9
29.0
36.7
20.4
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2016 ¹
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
10,764
21,954
19,661
16,011
12,822
24,605
16,308
29,194
9,885
1,183
678
164,808
6.5
13.3
11.9
9.7
7.8
14.9
9.9
17.7
6.0
0.7
0.4
100.0
6,190
16,095
26,361
37,032
47,606
65,365
91,774
146,327
299,793
713,230
3,336,255
94,528
3.9
10.3
9.6
27.4
0.4
2.3
3.3
3.8
19.0
5.4
14.5
100.0
284
379
1,298
2,931
4,821
8,881
14,716
26,977
67,818
202,519
1,176,375
18,855
2.0
7.0
7.7
25.3
0.1
0.3
0.8
1.5
21.6
7.7
25.7
100.0
5,906
15,715
25,062
34,101
42,785
56,485
77,058
119,350
231,975
510,711
2,159,880
75,672
4.4
11.1
10.1
27.9
0.5
2.8
4.0
4.4
18.4
4.8
11.7
100.0
10.1
13.6
16.0
18.4
4.6
2.4
4.9
7.9
22.6
28.4
35.3
20.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
Number of AMT Taxpayers (millions). Baseline: 4.8 Proposal: 4.8
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the
Tax Decrease Provisions tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.

28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
3.8
13.2
23.0
33.5
62.3
94.0
97.9
99.4
97.0
99.5
32.3
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
-0.1
-0.1
-0.1
-0.2
-0.3
-0.4
-0.8
-0.5
-0.8
-1.4
-2.9
-0.6
4.2
12.4
17.4
13.3
0.3
1.1
2.2
3.2
9.7
4.9
27.6
100.0
Average Federal Tax Change
Dollars Percent
119
213
582
489
6
12
32
66
1,747
6,712
61,997
239
1.8
1.8
3.1
1.6
1.4
1.4
1.4
1.5
2.3
3.1
4.8
2.5
Share of Federal Taxes
Change (% Points)
Under the
Proposal
0.0
0.0
0.0
-0.1
0.0
-0.1
0.1
-0.2
0.0
0.0
0.3
0.0
5.9
17.0
14.1
21.4
0.5
2.0
3.9
5.3
10.8
4.0
14.8
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
0.3
0.3
0.6
0.4
0.1
0.1
0.1
0.2
0.6
1.0
1.8
0.5
6.8
5.5
8.9
11.9
14.3
18.1
21.0
23.0
26.3
31.4
39.4
19.3
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2016 ¹
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
8,866
16,020
12,106
8,702
6,249
10,357
5,309
4,814
985
130
79
74,432
11.9
21.5
16.3
11.7
8.4
13.9
7.1
6.5
1.3
0.2
0.1
100.0
6,177
16,023
26,183
36,976
47,482
65,401
90,951
138,693
299,252
708,853
3,405,735
50,088
8.0
18.2
13.0
17.9
1.5
6.9
8.5
8.6
7.9
2.5
7.2
100.0
417
876
2,300
4,329
6,649
11,632
18,525
31,465
76,909
215,847
1,280,491
9,438
5.9
17.2
14.0
21.6
0.5
2.0
4.0
5.4
10.8
4.0
14.4
100.0
5,761
15,147
23,883
32,648
40,833
53,769
72,426
107,228
222,343
493,005
2,125,243
40,650
8.4
18.4
12.7
17.1
1.7
8.0
9.6
9.4
7.2
2.1
5.6
100.0
6.7
5.5
8.8
11.7
14.0
17.8
20.4
22.7
25.7
30.5
37.6
18.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the
Tax Decrease Provisions tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.

28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Detail Table - Married Tax Units Filing Jointly
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.6
15.0
21.9
29.4
39.3
59.5
90.9
98.9
99.7
99.9
100.0
77.8
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
-0.3
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.3
-0.8
-2.1
-0.5
15.2
10.0
60.1
100.0
0.4
1.5
1.9
9.0
0.0
0.1
0.1
0.3
Average Federal Tax Change
Dollars Percent
45
71
97
168
18
12
15
32
737
4,111
44,010
665
19.7
52.3
2.8
2.3
1.7
1.1
0.8
0.7
1.1
2.1
3.9
1.9
Share of Federal Taxes
Change (% Points)
Under the
Proposal
0.0
0.0
-0.1
-0.3
0.0
0.0
0.0
0.0
-0.2
0.0
0.6
0.0
0.4
2.5
4.6
26.1
0.0
0.0
0.1
0.2
26.0
9.3
30.4
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
0.1
0.1
0.1
0.1
0.3
0.1
0.1
0.1
0.3
0.6
1.4
0.4
5.8
9.6
13.3
17.5
2.0
0.2
2.1
3.8
22.4
28.7
36.3
21.7
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2016 ¹
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
793
1,809
3,022
3,252
3,501
9,022
8,297
22,351
8,625
1,018
571
62,924
5.6
14.3
13.2
35.5
1.3
2.9
4.8
5.2
13.7
1.6
0.9
100.0
5,399
16,592
26,749
37,230
47,869
65,781
92,667
148,912
299,844
713,846
3,269,774
163,166
1.6
5.8
7.5
32.4
0.0
0.3
0.8
1.2
25.2
7.1
18.2
100.0
89
23
557
1,393
2,715
6,222
12,248
25,920
66,481
200,599
1,143,209
34,788
0.4
2.6
4.6
26.5
0.0
0.0
0.1
0.2
26.2
9.3
29.8
100.0
5,310
16,569
26,192
35,837
45,154
59,560
80,419
122,992
233,362
513,247
2,126,565
128,378
2.0
6.7
8.3
34.0
0.1
0.4
1.0
1.4
24.9
6.5
15.0
100.0
5.7
9.5
13.2
17.4
1.7
0.1
2.1
3.7
22.2
28.1
35.0
21.3
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the
Tax Decrease Provisions tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.

28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Detail Table - Head of Household Tax Units
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
14.8
39.6
90.5
97.9
0.3
0.8
2.1
4.9
98.3
94.4
99.9
26.4
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
-0.2
-0.5
-1.6
-0.1
4.4
10.0
7.5
11.2
0.1
1.0
1.9
3.6
7.5
5.3
46.2
100.0
Average Federal Tax Change
Dollars Percent
371
2,418
34,251
41
16
22
34
67
5
10
1
2
-0.1
-0.2
-0.4
1.4
0.5
0.3
0.2
0.3
0.5
1.2
3.1
0.7
Share of Federal Taxes
Change (% Points)
Under the
Proposal
0.0
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
-0.5
-4.3
-3.6
1.9
5.7
24.2
21.8
30.8
10.1
3.2
10.7
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.1
0.4
1.1
0.1
-11.3
-9.7
-4.7
2.0
6.3
11.8
15.6
19.5
24.2
29.3
35.5
11.1
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2016 ¹
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
991
3,911
4,185
3,664
2,738
4,543
2,217
1,672
203
22
14
24,338
4.1
16.1
17.2
15.1
11.3
18.7
9.1
6.9
0.8
0.1
0.1
100.0
6,932
16,165
26,542
36,939
47,547
64,562
90,547
135,775
295,754
699,809
3,214,257
52,994
0.5
4.9
8.6
10.5
10.1
22.7
15.6
17.6
4.7
1.2
3.4
100.0
-785
-1,567
-1,243
731
2,981
7,621
14,072
26,369
71,059
202,428
1,107,169
5,864
-0.5
-4.3
-3.6
1.9
5.7
24.3
21.9
30.9
10.1
3.1
10.5
100.0
7,716
17,732
27,784
36,208
44,566
56,940
76,476
109,406
224,695
497,381
2,107,088
47,130
0.7
6.1
10.1
11.6
10.6
22.6
14.8
16.0
4.0
1.0
2.5
100.0
-11.3
-9.7
-4.7
2.0
6.3
11.8
15.5
19.4
24.0
28.9
34.5
11.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
* Less than 0.05
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the
Tax Decrease Provisions tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.

28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Detail Table - Tax Units with Children
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.6
47.7
94.7
99.6
0.2
1.5
3.9
8.4
99.9
100.0
100.0
56.7
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
-0.1
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.3
-1.4
-0.2
8.7
7.1
69.8
100.0
0.5
1.8
1.7
8.3
0.1
0.1
0.3
0.4
Average Federal Tax Change
Dollars Percent
213
1,524
28,121
229
16
28
36
75
7
11
4
4
-0.4
-0.2
-0.4
-21.8
0.8
0.4
0.3
0.3
0.3
0.8
2.5
1.0
Share of Federal Taxes
Change (% Points)
Under the
Proposal
0.0
0.0
0.0
-0.2
0.0
0.0
0.0
0.0
-0.2
0.0
0.4
0.0
-0.1
-0.8
-0.8
0.0
0.7
4.1
5.9
27.6
26.3
9.2
27.8
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.1
0.2
0.9
0.2
-15.7
-13.2
-6.9
-0.1
4.5
10.1
13.6
17.0
21.9
28.0
35.9
19.1
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2016 ¹
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
1,314
4,482
5,071
4,588
3,767
7,470
5,676
13,148
4,834
554
294
51,650
7.3
14.5
11.0
25.5
2.5
8.7
9.8
8.9
9.4
1.1
0.6
100.0
6,606
16,300
26,480
36,926
47,623
65,340
92,064
148,626
299,909
711,773
3,175,190
122,065
2.9
7.7
8.3
31.0
0.1
1.2
2.1
2.7
23.0
6.3
14.8
100.0
-1,043
-2,157
-1,829
-52
2,130
6,550
12,489
25,232
65,360
197,781
1,111,551
23,105
-0.1
-0.8
-0.8
0.0
0.7
4.1
5.9
27.8
26.5
9.2
27.3
100.0
7,649
18,457
28,309
36,978
45,494
58,790
79,574
123,393
234,549
513,992
2,063,639
98,959
3.4
8.6
8.8
31.7
0.2
1.6
2.8
3.3
22.2
5.6
11.9
100.0
-15.8
-13.2
-6.9
-0.1
4.5
10.0
13.6
17.0
21.8
27.8
35.0
18.9
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
* Less than 0.05
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the
Tax Decrease Provisions tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.

28-Jan-15 VERY PRELIMINARY: SUBJECT TO REVISION
Table T15-0007
President Obama's State of the Union Proposal: Major Tax Increase Provisions
Baseline: Current Law
Distribution of Federal Tax Change by Expanded Cash Income Level, 2016 ¹
Detail Table - Elderly Tax Units
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.3
3.4
21.0
33.9
43.8
59.9
78.5
95.1
98.5
98.2
99.9
46.9
Percent Change in After-Tax
Income 4
Share of Total
Federal Tax
Change
-0.3
-0.1
-0.2
-0.4
-0.5
-0.6
-1.1
-0.7
-1.6
-2.9
-4.3
-1.4
2.3
6.4
9.8
11.9
0.1
0.3
0.8
1.5
16.6
9.1
38.9
100.0
Average Federal Tax Change
Dollars Percent
19
16
56
136
235
378
914
833
3,708
14,618
93,323
945
29.5
15.7
9.6
8.6
8.3
6.4
7.9
3.6
5.4
7.0
7.9
6.5
Share of Federal Taxes
Change (% Points)
Under the
Proposal
0.0
0.0
0.1
-0.6
0.0
0.0
0.0
0.0
-0.2
0.0
0.4
0.0
1.8
6.5
8.1
20.8
0.0
0.1
0.6
1.2
19.7
8.5
32.4
100.0
http://www.taxpolicycenter.org
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
0.5
0.6
1.0
0.6
0.3
0.1
0.2
0.4
1.2
2.0
2.8
1.1
6.4
9.8
13.7
16.9
1.3
0.7
2.5
4.6
24.0
31.3
38.3
18.5
Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2016 ¹
Expanded Cash Income
Level (thousands of 2013 dollars) 2
Tax Units
Number
(thousands)
Percent of
Total
Pre-Tax Income
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
1,457
6,526
5,200
4,042
3,424
6,060
3,810
5,100
1,597
222
149
37,787
3.9
17.3
13.8
10.7
9.1
16.0
10.1
13.5
4.2
0.6
0.4
100.0
6,339
16,345
26,113
37,177
47,594
64,902
91,972
141,706
302,486
716,118
3,337,465
83,961
5.1
12.4
11.1
22.8
0.3
3.4
4.3
4.7
15.2
5.0
15.7
100.0
65
104
590
1,581
2,826
5,953
11,639
23,129
68,857
209,788
1,185,167
14,622
1.8
6.5
8.0
21.4
0.0
0.1
0.6
1.2
19.9
8.4
31.9
100.0
6,274
16,242
25,523
35,596
44,767
58,949
80,334
118,577
233,628
506,330
2,152,298
69,339
5.9
13.6
11.7
23.1
0.4
4.1
5.1
5.5
14.2
4.3
12.2
100.0
5.9
9.2
12.7
16.3
1.0
0.6
2.3
4.3
22.8
29.3
35.5
17.4
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-5).
* Less than 0.05
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law. Proposal would: (a) raise the top tax rate on long-term capital gains and qualified dividends from 20 percent to 24.2 percent; (b) tax unrealized capital gains at death (table shows the fully-phased in impact of this provision); (c) impose a tax on financial institutions; (d) limit the size of accumulated balances in IRA and 401(k)-type retirement accounts; and (e) repeal the deduction for student loan interest for new borrowers (table shows the fully phased in effect).
Although the education credit provisions provide a net tax increase for some tax units because of the repeal of the Lifetime Learning Credit, they are included in the
Tax Decrease Provisions tables, T15-0009 and T15-0010. Estimates in this table are based on descriptions of these proposals provided by the Administration in its fact sheet: http://www.whitehouse.gov/the-press-office/2015/01/17/fact-sheet-simpler-fairer-tax-code-responsibly-invests-middle-class-fami
For a description of TPC's current law baseline, see http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(4) After-tax income is expanded 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 expanded cash income.