30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 ¹
Summary Table
Expanded Cash Income
Level
(thousands of 2013
dollars) 2
Number
(thousands)
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
9,044
20,696
20,460
14,733
12,185
25,943
17,145
34,474
13,748
1,461
974
172,542
Tax Units
Percent of Total
5.2
12.0
11.9
8.5
7.1
15.0
9.9
20.0
8.0
0.9
0.6
100.0
Percent Change
in After-Tax
Income 3
4.8
2.3
0.7
0.4
0.2
0.1
-0.2
-0.2
-0.8
-1.8
-3.3
-0.7
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
-2.5
-7.1
-3.6
-1.8
-1.0
-0.8
2.0
9.1
23.4
13.3
69.0
100.0
-325
-411
-210
-149
-100
-36
140
314
2,034
10,862
84,604
692
Average Federal Tax Rate 4
Change (%
Points)
-4.5
-2.2
-0.7
-0.3
-0.2
-0.1
0.1
0.2
0.6
1.3
2.2
0.5
Under the
Proposal
1.0
1.8
4.5
6.5
9.2
13.6
15.9
18.0
22.4
28.4
36.0
20.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
Number of AMT Taxpayers (millions). Baseline: 6.1
Proposal: 5.9
(1) Calendar year. Baseline is current law. Proposal would (a) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 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
Change in
After-Tax
Income 3
Share of Total
Federal Tax
Change
4.8
2.3
0.7
0.4
0.2
0.1
-0.2
-0.2
-0.8
-1.8
-3.3
-0.7
-2.5
-7.1
-3.6
-1.8
-1.0
-0.8
2.0
9.1
23.4
13.3
69.0
100.0
Average Federal Tax Change
Dollars
-325
-411
-210
-149
-100
-36
140
314
2,034
10,862
84,604
692
Share of Federal Taxes
Percent
Change
(% Points)
-82.6
-55.0
-13.2
-5.1
-1.9
-0.3
0.8
1.0
2.7
4.8
6.4
2.7
-0.1
-0.2
-0.1
-0.1
-0.1
-0.2
-0.1
-0.4
0.0
0.2
1.1
0.0
Under the
Proposal
0.0
0.2
0.6
0.9
1.4
6.0
6.5
23.4
23.4
7.6
30.0
100.0
Average Federal Tax Rate 4
Change
(% Points)
-4.5
-2.2
-0.7
-0.3
-0.2
-0.1
0.1
0.2
0.6
1.3
2.2
0.5
Under the
Proposal
1.0
1.8
4.5
6.5
9.2
13.6
15.9
18.0
22.4
28.4
36.0
20.8
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2023 ¹
Expanded Cash Income
Level
(thousands of 2013
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
Number
(thousands)
9,044
20,696
20,460
14,733
12,185
25,943
17,145
34,474
13,748
1,461
974
172,542
Pre-Tax Income
Percent of Total
5.2
12.0
11.9
8.5
7.1
15.0
9.9
20.0
8.0
0.9
0.6
100.0
Average (dollars)
7,220
19,022
30,788
43,226
55,778
77,007
107,923
172,153
346,709
829,446
3,904,574
127,159
Percent of Total
0.3
1.8
2.9
2.9
3.1
9.1
8.4
27.1
21.7
5.5
17.3
100.0
Federal Tax Burden
Average (dollars)
394
747
1,595
2,950
5,224
10,499
17,004
30,644
75,529
224,798
1,319,571
25,734
Percent of
Total
0.1
0.4
0.7
1.0
1.4
6.1
6.6
23.8
23.4
7.4
28.9
100.0
After-Tax Income 3
Average (dollars)
6,826
18,274
29,192
40,276
50,554
66,508
90,920
141,508
271,180
604,648
2,585,002
101,425
Percent of
Total
0.4
2.2
3.4
3.4
3.5
9.9
8.9
27.9
21.3
5.1
14.4
100.0
Average
Federal Tax
Rate 4
5.5
3.9
5.2
6.8
9.4
13.6
15.8
17.8
21.8
27.1
33.8
20.2
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
Number of AMT Taxpayers (millions). Baseline: 6.1
Proposal: 5.9
(1) Calendar year. Baseline is current law. Proposal would (a) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Level
(thousands of 2013
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
Percent
Change in
After-Tax
3
Income
Share of Total
Federal Tax
Change
5.2
1.8
0.3
0.0
-0.1
-0.1
-0.5
-1.3
-2.4
-3.8
-5.5
-0.8
-7.3
-13.6
-3.2
-0.2
0.7
2.0
7.4
31.3
25.5
10.3
46.8
100.0
Average Federal Tax Change
Dollars
-341
-316
-89
-7
42
58
407
1,707
6,185
21,934
136,497
456
Share of Federal Taxes
Percent
Change
(% Points)
-59.0
-23.2
-3.5
-0.2
0.7
0.5
2.0
5.1
7.4
8.8
9.6
3.6
-0.3
-0.6
-0.2
-0.1
-0.1
-0.5
-0.2
0.3
0.5
0.2
1.0
0.0
Under the
Proposal
0.2
1.6
3.2
3.1
4.0
15.5
13.1
22.8
13.0
4.5
18.8
100.0
Average Federal Tax Rate 4
Change
(% Points)
-4.8
-1.7
-0.3
0.0
0.1
0.1
0.4
1.1
1.8
2.7
3.5
0.7
Under the
Proposal
3.3
5.5
8.1
9.3
11.6
16.6
19.2
22.0
26.4
32.8
39.9
19.4
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2023 ¹
Expanded Cash Income
Level
(thousands of 2013
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
Number
(thousands)
7,214
14,528
12,246
7,451
5,955
11,726
6,143
6,173
1,388
158
115
73,898
Pre-Tax Income
Percent of Total
9.8
19.7
16.6
10.1
8.1
15.9
8.3
8.4
1.9
0.2
0.2
100.0
Average (dollars)
7,176
18,982
30,614
43,174
55,643
76,647
107,057
161,668
342,510
826,054
3,920,613
67,132
Percent of Total
1.0
5.6
7.6
6.5
6.7
18.1
13.3
20.1
9.6
2.6
9.1
100.0
Federal Tax Burden
Average (dollars)
578
1,364
2,572
4,017
6,410
12,692
20,166
33,821
84,093
249,229
1,428,847
12,566
Percent of
Total
0.5
2.1
3.4
3.2
4.1
16.0
13.3
22.5
12.6
4.3
17.8
100.0
After-Tax Income 3
Average (dollars)
6,598
17,618
28,041
39,157
49,234
63,956
86,890
127,848
258,417
576,825
2,491,766
54,566
Percent of
Total
1.2
6.4
8.5
7.2
7.3
18.6
13.2
19.6
8.9
2.3
7.1
100.0
Average
Federal Tax
4
Rate
8.1
7.2
8.4
9.3
11.5
16.6
18.8
20.9
24.6
30.2
36.4
18.7
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
(1) Calendar year. Baseline is current law. Proposal would (a) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 ¹
Detail Table - Married Tax Units Filing Jointly
Expanded Cash Income
Level
(thousands of 2013
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
Percent
Change in
After-Tax
3
Income
Share of Total
Federal Tax
Change
2.2
2.5
1.2
0.8
0.6
0.2
0.0
0.0
-0.6
-1.6
-3.0
-0.8
-0.1
-0.8
-1.2
-1.2
-1.1
-1.2
0.1
-0.3
21.1
13.6
71.0
100.0
Average Federal Tax Change
Dollars
Percent
-139
-477
-357
-326
-301
-123
13
-10
1,532
9,441
75,761
1,281
-167.7
-245.8
-38.8
-15.2
-7.5
-1.6
0.1
0.0
2.1
4.3
5.9
2.7
Share of Federal Taxes
Change
(% Points)
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.6
-0.2
0.1
1.0
0.0
Under the
Proposal
0.0
0.0
0.1
0.2
0.4
2.0
3.5
23.2
27.7
8.9
34.0
100.0
Average Federal Tax Rate 4
Change
(% Points)
-2.1
-2.5
-1.1
-0.8
-0.5
-0.2
0.0
0.0
0.4
1.1
2.0
0.6
Under the
Proposal
-0.9
-1.5
1.8
4.2
6.6
10.0
13.2
16.9
21.8
27.8
35.4
22.2
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2023 ¹
Expanded Cash Income
Level
(thousands of 2013
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
Number
(thousands)
659
1,536
2,940
3,133
3,151
8,429
7,971
25,696
12,035
1,263
820
68,289
Pre-Tax Income
Percent of Total
1.0
2.3
4.3
4.6
4.6
12.3
11.7
37.6
17.6
1.9
1.2
100.0
Average (dollars)
6,514
19,449
31,311
43,465
56,220
77,724
108,770
175,982
347,229
829,860
3,852,355
217,501
Percent of Total
0.0
0.2
0.6
0.9
1.2
4.4
5.8
30.4
28.1
7.1
21.3
100.0
Federal Tax Burden
Average (dollars)
83
194
920
2,148
4,006
7,916
14,322
29,750
74,205
221,620
1,289,185
46,927
Percent of
Total
0.0
0.0
0.1
0.2
0.4
2.1
3.6
23.9
27.9
8.7
33.0
100.0
After-Tax Income 3
Average (dollars)
6,431
19,255
30,390
41,316
52,213
69,807
94,448
146,232
273,024
608,241
2,563,170
170,574
Percent of
Total
0.0
0.3
0.8
1.1
1.4
5.1
6.5
32.3
28.2
6.6
18.1
100.0
Average
Federal Tax
4
Rate
1.3
1.0
2.9
4.9
7.1
10.2
13.2
16.9
21.4
26.7
33.5
21.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
(1) Calendar year. Baseline is current law. Proposal would (a) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 ¹
Detail Table - Head of Household Tax Units
Expanded Cash Income
Level
(thousands of 2013
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
Percent
Change in
After-Tax
3
Income
Share of Total
Federal Tax
Change
4.3
3.6
1.4
0.7
0.4
0.2
0.1
-0.1
-0.9
-1.5
-3.0
0.4
6.4
52.0
35.5
18.9
9.0
10.7
4.3
-2.7
-8.9
-3.8
-22.6
100.0
Average Federal Tax Change
Dollars
-377
-734
-448
-308
-206
-132
-105
78
2,270
8,807
77,308
-230
Share of Federal Taxes
Percent
Change
(% Points)
52.3
61.1
67.1
-24.4
-5.9
-1.4
-0.6
0.3
2.8
4.0
5.9
-3.0
-0.2
-1.7
-1.1
-0.5
-0.1
0.4
0.5
1.0
0.6
0.2
1.0
0.0
Under the
Proposal
-0.6
-4.2
-2.7
1.8
4.4
22.7
20.9
32.2
10.0
3.0
12.4
100.0
Average Federal Tax Rate 4
Change
(% Points)
-4.7
-3.9
-1.5
-0.7
-0.4
-0.2
-0.1
0.1
0.7
1.1
2.0
-0.4
Under the
Proposal
-13.7
-10.2
-3.6
2.2
6.0
12.0
15.6
19.1
24.7
28.4
35.6
11.7
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2023 ¹
Expanded Cash Income
Level
(thousands of 2013
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
Number
(thousands)
1,049
4,354
4,876
3,775
2,687
4,966
2,515
2,130
240
26
18
26,775
Pre-Tax Income
Percent of Total
3.9
16.3
18.2
14.1
10.0
18.6
9.4
8.0
0.9
0.1
0.1
100.0
Average (dollars)
8,025
19,028
30,882
43,104
55,525
76,568
107,149
158,986
338,374
817,032
3,890,723
64,080
Percent of Total
0.5
4.8
8.8
9.5
8.7
22.2
15.7
19.7
4.7
1.3
4.1
100.0
Federal Tax Burden
Average (dollars)
-721
-1,200
-668
1,260
3,518
9,341
16,814
30,295
81,319
222,821
1,307,239
7,743
Percent of
Total
-0.4
-2.5
-1.6
2.3
4.6
22.4
20.4
31.1
9.4
2.8
11.3
100.0
After-Tax Income 3
Average (dollars)
8,747
20,229
31,550
41,844
52,007
67,227
90,335
128,691
257,055
594,211
2,583,484
56,337
Percent of
Total
0.6
5.8
10.2
10.5
9.3
22.1
15.1
18.2
4.1
1.0
3.1
100.0
Average
Federal Tax
4
Rate
-9.0
-6.3
-2.2
2.9
6.3
12.2
15.7
19.1
24.0
27.3
33.6
12.1
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
(1) Calendar year. Baseline is current law. Proposal would (a) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 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
Change in
After-Tax
Income 3
Share of Total
Federal Tax
Change
3.8
3.5
1.7
1.1
0.8
0.4
0.1
0.1
-0.7
-1.6
-2.5
-0.4
-1.5
-11.7
-10.8
-7.6
-5.4
-6.6
-1.9
-4.6
40.4
21.9
88.2
100.0
Average Federal Tax Change
Dollars
-337
-731
-547
-482
-429
-254
-100
-92
1,777
9,724
63,424
525
Share of Federal Taxes
Percent
Change
(% Points)
33.0
39.5
43.4
-97.9
-14.2
-3.1
-0.7
-0.3
2.4
4.4
4.9
1.7
0.0
-0.2
-0.2
-0.1
-0.1
-0.2
-0.1
-0.5
0.2
0.2
1.0
0.0
Under the
Proposal
-0.1
-0.7
-0.6
0.0
0.5
3.4
4.6
23.8
28.7
8.6
31.5
100.0
Average Federal Tax Rate 4
Change
(% Points)
-4.3
-3.8
-1.8
-1.1
-0.8
-0.3
-0.1
-0.1
0.5
1.2
1.7
0.3
Under the
Proposal
-17.4
-13.5
-5.9
0.0
4.6
10.3
13.6
16.6
21.7
27.8
35.6
20.0
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2023 ¹
Expanded Cash Income
Level
(thousands of 2013
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
Number
(thousands)
1,301
4,676
5,797
4,606
3,694
7,624
5,504
14,466
6,664
660
408
55,806
Pre-Tax Income
Percent of Total
2.3
8.4
10.4
8.3
6.6
13.7
9.9
25.9
11.9
1.2
0.7
100.0
Average (dollars)
7,817
19,091
30,843
43,192
55,792
76,774
108,192
174,353
347,908
826,071
3,808,048
157,555
Percent of Total
0.1
1.0
2.0
2.3
2.3
6.7
6.8
28.7
26.4
6.2
17.7
100.0
Federal Tax Burden
Average (dollars)
-1,021
-1,851
-1,262
492
3,012
8,183
14,779
29,022
73,807
219,804
1,292,366
30,938
Percent of
Total
-0.1
-0.5
-0.4
0.1
0.6
3.6
4.7
24.3
28.5
8.4
30.5
100.0
After-Tax Income 3
Average (dollars)
8,837
20,942
32,105
42,700
52,780
68,591
93,413
145,330
274,102
606,267
2,515,681
126,617
Percent of
Total
0.2
1.4
2.6
2.8
2.8
7.4
7.3
29.8
25.9
5.7
14.5
100.0
Average
Federal Tax
Rate 4
-13.1
-9.7
-4.1
1.1
5.4
10.7
13.7
16.7
21.2
26.6
33.9
19.6
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
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) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0052
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 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
Change in
After-Tax
Income 3
Share of Total
Federal Tax
Change
0.4
0.1
0.1
0.0
-0.1
-0.1
-0.5
-1.0
-1.3
-2.5
-5.2
-1.4
-0.1
-0.2
-0.2
0.0
0.2
0.8
4.2
17.9
15.2
8.1
53.8
100.0
Average Federal Tax Change
Dollars
-25
-19
-21
-4
30
65
502
1,349
3,593
15,287
129,282
1,320
Share of Federal Taxes
Percent
Change
(% Points)
-28.6
-12.9
-4.1
-0.2
0.8
0.9
3.6
5.0
4.9
6.8
10.3
6.4
0.0
0.0
0.0
-0.1
-0.1
-0.3
-0.2
-0.3
-0.3
0.0
1.2
0.0
Under the
Proposal
0.0
0.1
0.3
0.8
1.6
5.9
7.2
22.6
19.5
7.6
34.3
100.0
Average Federal Tax Rate 4
Change
(% Points)
-0.4
-0.1
-0.1
0.0
0.1
0.1
0.5
0.8
1.0
1.8
3.4
1.1
Under the
Proposal
0.9
0.6
1.6
3.9
6.5
10.0
13.5
16.8
22.2
29.1
36.7
18.9
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Level, 2023 ¹
Expanded Cash Income
Level
(thousands of 2013
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
Number
(thousands)
1,122
5,192
5,584
4,618
4,278
7,413
4,799
7,684
2,456
307
242
43,929
Pre-Tax Income
Percent of Total
2.6
11.8
12.7
10.5
9.7
16.9
10.9
17.5
5.6
0.7
0.6
100.0
Average (dollars)
7,259
19,552
30,742
43,562
55,638
76,784
108,189
169,762
346,496
830,051
3,756,495
116,731
Percent of Total
0.2
2.0
3.4
3.9
4.6
11.1
10.1
25.4
16.6
5.0
17.7
100.0
Federal Tax Burden
Average (dollars)
89
144
507
1,716
3,583
7,612
14,101
27,123
73,322
226,575
1,249,888
20,763
Percent of
Total
0.0
0.1
0.3
0.9
1.7
6.2
7.4
22.9
19.7
7.6
33.1
100.0
After-Tax Income 3
Average (dollars)
7,171
19,408
30,236
41,846
52,054
69,172
94,088
142,639
273,174
603,477
2,506,608
95,968
Percent of
Total
0.2
2.4
4.0
4.6
5.3
12.2
10.7
26.0
15.9
4.4
14.4
100.0
Average
Federal Tax
Rate 4
1.2
0.7
1.7
3.9
6.4
9.9
13.0
16.0
21.2
27.3
33.3
17.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3).
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) extend ARRA enhancements to the refundable child tax credit and earned income tax
credit; (b) replace Hope credit with the American Opportunity Tax Credit; (c) provide incentives for job creation, clean energy, and manufacturing;
(d) provide incentives for investment in infrastructure; (e) increase earned income tax credit for taxpayers without qualifying children by doubling
maximum credit and expanding age eligibility; (f) implement auto-IRA provision with small employer credit ; (g) expand child and dependent care
credit for qualifying children under 5; (h) exclude Pell Grants from income and tax credit calculations; (i) limit the value of itemized deductions and
certain other deductions and exclusions to 28 percent; (j) enact the Fair Share Tax (“Buffett rule”); (k) restore 2009 estate tax law (45 percent
rate and $3.5 million unindexed exemption); (l) impose a financial crisis responsibility fee; (m) tax carried interests (profits) as ordinary income;
(n) limit accrual in tax favored retirement accounts; (o) conform SECA taxes for professional service businesses; (p) reinstate Superfund income
and excise taxes; (q) increase tobacco excise taxes and index for inflation; (r) make unemployment insurance surtax permanent and expand FUTA
base; (s) eliminate deduction for dividends from employee stock ownership plans; and (t) simplify rules for claiming the childless EITC. 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) 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.
(4) 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.