3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups. Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only Distribution of Federal Tax Change by Cash Income Level, 2015 1 Summary Table Cash Income Level (thousands of 2012 2 dollars) 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 Tax Units with Tax Increase or Cut 3 With Tax Cut Pct of Tax Avg Tax Cut Units 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.2 0.1 * 0 0 0 0 0 0 0 0 -22 -23 -23 ** With Tax Increase Pct of Tax Avg Tax Units Increase 0.2 13.2 24.1 25.7 18.3 32.0 30.2 73.9 98.3 98.3 99.4 32.1 17 12 19 23 23 14 14 22 57 96 130 25 Percent Change in After-Tax 4 Income 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 3.0 6.9 8.0 5.4 10.7 6.2 25.9 23.1 5.6 5.1 100.0 Average Federal Tax Change ($) 0 2 5 6 5 6 6 17 55 93 127 9 5 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 0.0 0.0 3.3 1.9 6.7 11.6 14.3 17.2 19.6 22.2 26.3 32.2 38.7 22.8 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). Number of AMT Taxpayers (millions). Baseline: 4.0 Proposal: 4.0 * Less than 0.05 ** Insufficient data (1) Calendar year. Baseline is current law. Proposal would index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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. 3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only 1 Distribution of Federal Tax Change by Cash Income Level, 2015 Detail Table Cash Income Level (thousands of 2012 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 0.4 0.2 0.1 * 0.2 13.2 24.1 25.7 18.3 32.0 30.2 73.9 98.3 98.3 99.4 32.1 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 3.0 6.9 8.0 5.4 10.7 6.2 25.9 23.1 5.6 5.1 100.0 Average Federal Tax Change Dollars 0 2 5 6 5 6 6 17 55 93 127 9 Percent 0.1 0.6 0.3 0.2 0.1 0.1 0.0 0.1 0.1 0.0 0.0 0.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.1 0.2 1.2 2.6 3.4 10.3 9.6 23.0 15.7 6.7 27.1 100.0 Average Federal Tax Rate5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 3.3 1.9 6.7 11.6 14.3 17.2 19.6 22.2 26.3 32.2 38.7 22.8 Baseline Distribution of Income and Federal Taxes 1 by Cash Income Level, 2015 Cash Income Level (thousands of 2012 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 Tax Units Number (thousands) 13,758 22,829 19,028 17,708 14,571 26,865 15,478 21,848 5,910 854 567 160,282 Percent of Total 8.6 14.2 11.9 11.1 9.1 16.8 9.7 13.6 3.7 0.5 0.4 100.0 Pre-Tax Income Average (dollars) 5,491 15,580 25,863 36,613 46,902 63,716 90,823 136,192 288,460 693,862 3,536,837 78,595 Percent of Total 0.6 2.8 3.9 5.2 5.4 13.6 11.2 23.6 13.5 4.7 15.9 100.0 Federal Tax Burden Average (dollars) 181 296 1,724 4,232 6,718 10,981 17,778 30,204 75,836 223,053 1,369,639 17,872 Percent of Total 0.1 0.2 1.2 2.6 3.4 10.3 9.6 23.0 15.7 6.7 27.1 100.0 After-Tax Income 4 Average (dollars) 5,310 15,283 24,139 32,381 40,184 52,735 73,045 105,988 212,624 470,809 2,167,199 60,723 Percent of Total 0.8 3.6 4.7 5.9 6.0 14.6 11.6 23.8 12.9 4.1 12.6 100.0 Average Federal Tax Rate 5 3.3 1.9 6.7 11.6 14.3 17.2 19.6 22.2 26.3 32.2 38.7 22.7 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). Number of AMT Taxpayers (millions). Baseline: 4.0 Proposal: 4.0 * Less than 0.05 (1) Calendar year. Baseline is current law. Proposal would index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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. 3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only Distribution of Federal Tax Change by Cash Income Level, 2015 1 Detail Table - Single Tax Units Cash Income Level (thousands of 2012 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 0.0 2.2 2.4 2.1 2.6 70.8 94.2 96.3 97.5 96.0 99.6 21.7 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.5 3.2 4.4 5.0 3.9 30.8 14.2 17.2 14.0 3.5 3.3 100.0 Average Federal Tax Change Dollars 0 1 1 1 2 9 11 15 58 96 128 4 Percent 0.0 0.1 0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.0 0.0 0.0 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.6 2.4 4.7 7.6 8.6 20.5 11.7 16.1 8.7 3.6 15.4 100.0 5 Average Federal Tax Rate Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 7.4 6.7 11.2 14.9 18.3 21.6 24.0 25.8 29.2 33.7 41.2 21.5 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2015 1 Cash Income Level (thousands of 2012 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 Tax Units Number (thousands) 10,507 15,568 11,176 9,526 6,840 10,274 3,678 3,188 690 103 72 72,071 Percent of Total 14.6 21.6 15.5 13.2 9.5 14.3 5.1 4.4 1.0 0.1 0.1 100.0 Pre-Tax Income Average (dollars) 5,427 15,496 25,685 36,575 46,685 63,117 90,100 133,751 292,471 699,403 3,544,924 44,035 Percent of Total 1.8 7.6 9.1 11.0 10.1 20.4 10.4 13.4 6.4 2.3 8.0 100.0 Federal Tax Burden Average (dollars) 401 1,032 2,874 5,451 8,552 13,627 21,629 34,495 85,401 235,844 1,460,930 9,459 Percent of Total 0.6 2.4 4.7 7.6 8.6 20.5 11.7 16.1 8.7 3.6 15.4 100.0 After-Tax Income Average (dollars) 5,026 14,464 22,811 31,124 38,133 49,491 68,471 99,256 207,070 463,559 2,083,994 34,577 4 Percent of Total 2.1 9.0 10.2 11.9 10.5 20.4 10.1 12.7 5.7 1.9 6.0 100.0 Average Federal Tax Rate 5 7.4 6.7 11.2 14.9 18.3 21.6 24.0 25.8 29.2 33.7 41.2 21.5 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). * Less than 0.05 (1) Calendar year. Baseline is current law. Proposal would index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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. 3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only Distribution of Federal Tax Change by Cash Income Level, 2015 1 Detail Table - Married Tax Units Filing Jointly Cash Income Level (thousands of 2012 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 1.5 21.4 34.7 36.7 32.5 5.3 0.9 68.7 99.1 99.1 99.7 38.3 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 0.8 2.3 3.9 4.3 4.7 3.0 34.0 32.0 7.8 7.0 100.0 Average Federal Tax Change Dollars 0 3 6 9 8 3 3 17 55 93 129 14 Percent 0.2 -1.0 1.5 0.4 0.2 0.0 0.0 0.1 0.1 0.0 0.0 0.0 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.0 0.0 0.1 0.4 0.9 5.2 8.3 26.1 18.9 8.1 31.9 100.0 5 Average Federal Tax Rate Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 3.2 -1.8 1.6 6.0 8.6 13.3 17.7 21.4 25.8 31.9 38.4 24.2 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2015 1 Cash Income Level (thousands of 2012 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 Tax Units Number (thousands) 1,225 2,482 3,253 3,949 4,568 12,103 10,130 17,635 5,043 725 473 61,905 Percent of Total 2.0 4.0 5.3 6.4 7.4 19.6 16.4 28.5 8.2 1.2 0.8 100.0 Pre-Tax Income Average (dollars) 4,634 16,145 26,193 36,813 47,297 64,376 91,232 136,887 287,748 692,769 3,483,115 132,067 Percent of Total 0.1 0.5 1.0 1.8 2.6 9.5 11.3 29.5 17.8 6.1 20.2 100.0 Federal Tax Burden Average (dollars) 147 -287 411 2,182 4,038 8,541 16,176 29,256 74,207 221,174 1,337,579 31,997 Percent of Total 0.0 0.0 0.1 0.4 0.9 5.2 8.3 26.1 18.9 8.1 31.9 100.0 After-Tax Income Average (dollars) 4,486 16,431 25,783 34,631 43,259 55,834 75,056 107,631 213,541 471,595 2,145,536 100,070 4 Percent of Total 0.1 0.7 1.4 2.2 3.2 10.9 12.3 30.6 17.4 5.5 16.4 100.0 Average Federal Tax Rate 5 3.2 -1.8 1.6 5.9 8.5 13.3 17.7 21.4 25.8 31.9 38.4 24.2 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). * Less than 0.05 (1) Calendar year. Baseline is current law. Proposal would index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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. 3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only Distribution of Federal Tax Change by Cash Income Level, 2015 1 Detail Table - Head of Household Tax Units Cash Income Level (thousands of 2012 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 0.6 47.1 74.4 75.9 35.1 6.8 62.7 93.9 98.9 95.0 99.2 47.7 Percent Change in After-Tax Income 4 0.0 0.0 -0.1 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 11.2 27.2 27.2 11.2 6.0 5.4 6.4 4.0 0.6 0.6 100.0 Average Federal Tax Change Dollars 0 6 15 17 9 4 9 17 70 77 114 10 Percent 0.0 -0.3 -3.3 0.6 0.2 0.0 0.1 0.1 0.1 0.0 0.0 0.2 Share of Federal Taxes Change (% Points) 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -1.4 -6.4 -1.3 8.1 12.4 30.8 17.9 19.2 7.4 2.7 10.6 100.0 5 Average Federal Tax Rate Change (% Points) 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -16.2 -12.9 -1.7 8.3 13.5 17.6 20.3 23.9 27.2 31.4 37.1 13.7 Baseline Distribution of Income and Federal Taxes by Cash Income Level, 2015 1 Cash Income Level (thousands of 2012 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 Tax Units Number (thousands) 1,905 4,539 4,290 3,808 2,797 3,923 1,387 866 134 17 12 23,746 Percent of Total 8.0 19.1 18.1 16.0 11.8 16.5 5.8 3.7 0.6 0.1 0.1 100.0 Pre-Tax Income Average (dollars) 6,415 15,554 26,064 36,456 46,855 63,261 90,105 131,590 290,035 697,882 3,314,596 43,843 Percent of Total 1.2 6.8 10.7 13.3 12.6 23.8 12.0 11.0 3.7 1.2 3.9 100.0 Federal Tax Burden Average (dollars) -1,042 -2,006 -445 2,998 6,292 11,140 18,288 31,430 78,826 218,881 1,227,823 5,976 Percent of Total -1.4 -6.4 -1.4 8.0 12.4 30.8 17.9 19.2 7.4 2.7 10.6 100.0 After-Tax Income Average (dollars) 7,457 17,560 26,509 33,458 40,562 52,120 71,817 100,159 211,209 479,001 2,086,774 37,867 4 Percent of Total 1.6 8.9 12.7 14.2 12.6 22.7 11.1 9.7 3.1 0.9 2.9 100.0 Average Federal Tax Rate 5 -16.2 -12.9 -1.7 8.2 13.4 17.6 20.3 23.9 27.2 31.4 37.0 13.6 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). * Less than 0.05 (1) Calendar year. Baseline is current law. Proposal would index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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. 3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only 1 Distribution of Federal Tax Change by Cash Income Level, 2015 Detail Table - Tax Units with Children Cash Income Level (thousands of 2012 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 0.2 0.1 0.1 * 1.2 55.3 87.7 90.5 59.4 12.1 12.3 62.3 98.9 98.8 99.6 51.2 Percent Change in After-Tax Income 4 0.0 0.0 -0.1 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.1 4.9 12.0 13.5 8.3 5.8 3.4 20.2 22.4 5.0 4.3 100.0 Average Federal Tax Change Dollars 0 7 17 20 15 5 4 15 60 93 130 15 Percent 0.0 -0.3 -1.4 0.9 0.3 0.1 0.0 0.1 0.1 0.0 0.0 0.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -0.3 -1.2 -0.6 1.0 2.0 7.8 9.7 26.5 18.7 7.9 28.5 100.0 Average Federal Tax Rate5 Change (% Points) 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal -19.0 -16.2 -4.7 5.9 11.2 15.9 18.6 21.8 26.3 32.1 38.2 22.4 Baseline Distribution of Income and Federal Taxes 1 by Cash Income Level, 2015 Cash Income Level (thousands of 2012 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 Tax Units Number (thousands) Percent of Total 2,529 5,460 5,227 5,001 4,223 8,572 6,412 9,954 2,772 401 249 50,995 5.0 10.7 10.3 9.8 8.3 16.8 12.6 19.5 5.4 0.8 0.5 100.0 Pre-Tax Income Average (dollars) 5,929 15,660 25,991 36,549 46,968 64,230 91,213 137,109 288,339 692,814 3,372,806 98,292 Percent of Total 0.3 1.7 2.7 3.7 4.0 11.0 11.7 27.2 15.9 5.5 16.7 100.0 Federal Tax Burden Average (dollars) -1,125 -2,539 -1,231 2,129 5,230 10,173 17,003 29,852 75,639 221,936 1,288,516 22,023 Percent of Total -0.3 -1.2 -0.6 1.0 2.0 7.8 9.7 26.5 18.7 7.9 28.5 100.0 After-Tax Income 4 Average (dollars) 7,053 18,198 27,222 34,421 41,737 54,057 74,211 107,257 212,701 470,878 2,084,290 76,268 Percent of Total 0.5 2.6 3.7 4.4 4.5 11.9 12.2 27.5 15.2 4.9 13.3 100.0 Average Federal Tax Rate 5 -19.0 -16.2 -4.7 5.8 11.1 15.8 18.6 21.8 26.2 32.0 38.2 22.4 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). * 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 index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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. 3-May-13 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T13-0140 Administration's FY2014 Budget Proposals Chained CPI Only 1 Distribution of Federal Tax Change by Cash Income Level, 2015 Detail Table - Elderly Tax Units Cash Income Level (thousands of 2012 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 0.3 0.3 0.3 * 0.0 * 0.2 1.0 3.1 19.2 27.1 79.7 97.9 97.9 99.1 18.9 Percent Change in After-Tax Income 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Share of Total Federal Tax Change 0.0 0.0 0.2 0.8 2.1 10.7 7.7 34.5 28.2 7.9 7.7 100.0 Average Federal Tax Change Dollars 0 0 0 0 1 4 5 19 50 95 130 6 Percent 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.0 0.0 0.0 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 0.0 0.2 0.6 1.4 2.0 7.6 7.6 19.2 17.2 8.0 36.1 100.0 Average Federal Tax Rate5 Change (% Points) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Under the Proposal 1.6 0.7 2.4 4.3 6.0 9.2 13.4 17.7 24.6 32.0 39.6 18.2 Baseline Distribution of Income and Federal Taxes 1 by Cash Income Level, 2015 Cash Income Level (thousands of 2012 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 Tax Units Number (thousands) Percent of Total 1,763 6,759 4,929 4,354 3,514 6,388 3,121 3,950 1,190 177 126 36,302 4.9 18.6 13.6 12.0 9.7 17.6 8.6 10.9 3.3 0.5 0.4 100.0 Pre-Tax Income Average (dollars) 5,956 15,952 25,739 36,653 46,902 63,256 89,803 134,735 289,039 692,539 3,539,630 74,274 Percent of Total 0.4 4.0 4.7 5.9 6.1 15.0 10.4 19.7 12.8 4.5 16.6 100.0 Federal Tax Burden Average (dollars) 95 115 618 1,572 2,822 5,799 12,016 23,858 71,101 221,741 1,400,243 13,520 Percent of Total 0.0 0.2 0.6 1.4 2.0 7.6 7.6 19.2 17.2 8.0 36.1 100.0 After-Tax Income 4 Average (dollars) 5,861 15,838 25,121 35,081 44,079 57,457 77,787 110,877 217,938 470,798 2,139,387 60,754 Percent of Total 0.5 4.9 5.6 6.9 7.0 16.6 11.0 19.9 11.8 3.8 12.3 100.0 Average Federal Tax Rate 5 1.6 0.7 2.4 4.3 6.0 9.2 13.4 17.7 24.6 32.0 39.6 18.2 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8). * 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 index the tax system using the chained CPI beginning after 2014. 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 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) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (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.