30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2023 ¹
Summary Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Tax Units
Number
(thousands)
Percent of Total
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
Average Federal Tax Rate 5
Change (%
Points)
Under the
Proposal
44,500
37,598
35,272
28,346
25,147
172,542
25.8
21.8
20.4
16.4
14.6
100.0
1.8
0.3
-0.1
-0.3
-1.5
-0.7
-12.4
-3.9
1.1
8.7
106.4
100.0
-333
-124
39
368
5,052
692
-1.7
-0.3
0.0
0.2
1.1
0.5
2.8
8.3
14.8
17.4
26.8
20.8
12,783
6,110
4,968
1,286
130
7.4
3.5
2.9
0.8
0.1
-0.1
-0.5
-1.5
-3.1
-3.5
2.2
6.0
25.5
72.8
35.3
206
1,165
6,116
67,564
323,609
0.1
0.4
1.2
2.1
2.3
19.5
21.7
25.5
35.4
37.6
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax
units. The breaks are (in 2013 dollars): 20% $26,827; 40% $54,460; 60% $95,241; 80% $156,821; 90% $230,152; 95% $304,802; 99% $779,814; 99.9% $4,723,866.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2023 ¹
Detail Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change
(% Points)
Under the
Proposal
Average Federal Tax Rate 5
Change
(% Points)
Under the
Proposal
1.8
0.3
-0.1
-0.3
-1.5
-0.7
-12.4
-3.9
1.1
8.7
106.4
100.0
-333
-124
39
368
5,052
692
-37.6
-3.0
0.3
1.4
4.2
2.7
-0.4
-0.2
-0.3
-0.2
1.0
0.0
0.5
3.4
10.3
16.5
69.1
100.0
-1.7
-0.3
0.0
0.2
1.1
0.5
2.8
8.3
14.8
17.4
26.8
20.8
-0.1
-0.5
-1.5
-3.1
-3.5
2.2
6.0
25.5
72.8
35.3
206
1,165
6,116
67,564
323,609
0.5
1.7
4.8
6.3
6.4
-0.3
-0.1
0.3
1.1
0.5
12.8
9.5
14.7
32.2
15.3
0.1
0.4
1.2
2.1
2.3
19.5
21.7
25.5
35.4
37.6
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
44,500
37,598
35,272
28,346
25,147
172,542
25.8
21.8
20.4
16.4
14.6
100.0
19,943
48,962
90,176
152,357
466,904
127,159
4.0
8.4
14.5
19.7
53.5
100.0
886
4,182
13,318
26,158
120,213
25,734
0.9
3.5
10.6
16.7
68.1
100.0
19,057
44,780
76,857
126,199
346,691
101,425
4.9
9.6
15.5
20.4
49.8
100.0
4.4
8.5
14.8
17.2
25.8
20.2
12,783
6,110
4,968
1,286
130
7.4
3.5
2.9
0.8
0.1
232,985
326,077
528,443
3,222,719
14,263,796
13.6
9.1
12.0
18.9
8.5
45,260
69,597
128,370
1,073,976
5,032,507
13.0
9.6
14.4
31.1
14.7
187,725
256,479
400,073
2,148,743
9,231,289
13.7
9.0
11.4
15.8
6.9
19.4
21.3
24.3
33.3
35.3
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2013 dollars): 20% $26,827; 40%
$54,460; 60% $95,241; 80% $156,821; 90% $230,152; 95% $304,802; 99% $779,814; 99.9% $4,723,866.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Detail Table
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change
(% Points)
Average Federal Tax Rate
Under the
Proposal
Change
(% Points)
5
Under the
Proposal
2.4
0.4
0.0
-0.1
-1.5
-0.7
-13.7
-4.2
0.4
1.7
115.8
100.0
-452
-138
13
63
4,361
692
-164.2
-4.1
0.1
0.3
4.3
2.7
-0.4
-0.2
-0.2
-0.4
1.1
0.0
-0.1
2.6
7.9
16.1
73.3
100.0
-2.4
-0.3
0.0
0.1
1.1
0.5
-0.9
7.5
13.0
16.9
26.5
20.8
-0.3
-0.6
-1.3
-3.2
-3.6
7.1
8.2
25.2
75.4
38.3
524
1,271
4,639
60,738
301,529
1.4
2.1
4.3
6.4
6.7
-0.2
-0.1
0.2
1.1
0.6
13.9
10.3
16.1
33.1
16.0
0.3
0.5
1.0
2.1
2.4
19.7
21.4
25.0
35.3
37.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
36,160
36,291
33,999
32,725
31,689
172,542
21.0
21.0
19.7
19.0
18.4
100.0
18,975
43,302
81,191
132,960
397,610
127,159
3.1
7.2
12.6
19.8
57.4
100.0
275
3,399
10,550
22,430
101,137
25,734
0.2
2.8
8.1
16.5
72.2
100.0
18,700
39,903
70,641
110,531
296,473
101,425
3.9
8.3
13.7
20.7
53.7
100.0
1.5
7.9
13.0
16.9
25.4
20.2
16,056
7,679
6,472
1,482
152
9.3
4.5
3.8
0.9
0.1
199,688
283,721
454,467
2,883,799
12,799,934
14.6
9.9
13.4
19.5
8.9
38,903
59,560
108,880
957,024
4,514,145
14.1
10.3
15.9
31.9
15.4
160,785
224,161
345,587
1,926,774
8,285,789
14.8
9.8
12.8
16.3
7.2
19.5
21.0
24.0
33.2
35.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2013 dollars): 20% $18,678; 40% $35,821; 60% $60,717; 80% $95,966; 90% $135,210; 95% $184,371; 99%
$473,923; 99.9% $2,793,265.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Detail Table - Single Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Average Federal Tax Rate 5
Share of Federal Taxes
Change
(% Points)
Under the
Proposal
Change
(% Points)
Under the
Proposal
2.6
0.2
-0.1
-0.3
-2.4
-0.8
-21.0
-3.5
2.2
7.1
115.0
100.0
-350
-63
52
209
4,552
456
-34.8
-2.2
0.7
1.2
7.1
3.6
-0.8
-0.3
-0.3
-0.5
2.0
0.0
1.4
5.5
11.6
20.6
60.6
100.0
-2.4
-0.2
0.1
0.2
1.8
0.7
4.5
8.7
13.2
18.5
27.3
19.4
-1.3
-1.3
-2.3
-5.0
-5.6
20.6
9.9
26.6
57.8
29.7
1,439
1,915
5,484
65,729
331,782
5.0
4.7
7.1
9.4
9.4
0.2
0.1
0.5
1.2
0.6
15.1
7.8
14.1
23.6
12.1
1.0
1.0
1.7
3.3
3.5
21.5
22.2
25.8
38.1
40.9
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
20,234
18,704
14,241
11,410
8,509
73,898
27.4
25.3
19.3
15.4
11.5
100.0
14,557
32,828
59,609
94,226
251,068
67,132
5.9
12.4
17.1
21.7
43.1
100.0
1,004
2,903
7,790
17,177
64,020
12,566
2.2
5.9
12.0
21.1
58.7
100.0
13,553
29,926
51,819
77,049
187,048
54,566
6.8
13.9
18.3
21.8
39.5
100.0
6.9
8.8
13.1
18.2
25.5
18.7
4,827
1,749
1,636
296
30
6.5
2.4
2.2
0.4
0.0
140,001
193,289
321,231
2,015,244
9,446,746
13.6
6.8
10.6
12.0
5.7
28,681
41,009
77,337
702,424
3,532,616
14.9
7.7
13.6
22.4
11.5
111,320
152,280
243,894
1,312,820
5,914,130
13.3
6.6
9.9
9.6
4.4
20.5
21.2
24.1
34.9
37.4
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2013 dollars): 20% $18,678; 40% $35,821; 60% $60,717; 80% $95,966; 90% $135,210; 95% $184,371; 99%
$473,923; 99.9% $2,793,265.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Detail Table - Married Tax Units Filing Jointly
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Average Federal Tax Rate 5
Share of Federal Taxes
Change
(% Points)
Under the
Proposal
Change
(% Points)
Under the
Proposal
2.1
0.5
0.0
0.0
-1.3
-0.8
-3.4
-2.6
0.0
-0.5
106.5
100.0
-541
-249
1
-27
4,294
1,281
-393.7
-5.3
0.0
-0.1
3.7
2.7
-0.1
-0.1
-0.2
-0.4
0.7
0.0
-0.1
1.3
5.4
13.9
79.4
100.0
-2.0
-0.4
0.0
0.0
0.9
0.6
-1.5
7.6
12.6
16.1
26.3
22.2
-0.1
-0.4
-1.1
-2.8
-3.3
1.5
6.8
23.1
75.1
37.3
127
1,061
4,383
58,705
293,142
0.3
1.6
3.6
5.8
6.1
-0.3
-0.1
0.2
1.1
0.6
13.8
11.4
17.5
36.7
17.3
0.1
0.3
0.9
1.9
2.1
19.1
21.2
24.7
34.8
37.1
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
5,436
9,236
13,569
17,691
21,701
68,289
8.0
13.5
19.9
25.9
31.8
100.0
26,576
58,765
103,303
160,423
458,255
217,501
1.0
3.7
9.4
19.1
67.0
100.0
137
4,707
13,028
25,910
116,082
46,927
0.0
1.4
5.5
14.3
78.6
100.0
26,439
54,058
90,275
134,513
342,173
170,574
1.2
4.3
10.5
20.4
63.8
100.0
0.5
8.0
12.6
16.2
25.3
21.6
10,343
5,634
4,605
1,119
111
15.2
8.3
6.7
1.6
0.2
230,259
314,419
505,519
3,094,372
13,726,125
16.0
11.9
15.7
23.3
10.3
43,864
65,471
120,623
1,019,414
4,804,760
14.2
11.5
17.3
35.6
16.7
186,395
248,948
384,896
2,074,958
8,921,365
16.6
12.0
15.2
19.9
8.5
19.1
20.8
23.9
32.9
35.0
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2013 dollars): 20% $18,678; 40% $35,821; 60% $60,717; 80% $95,966; 90% $135,210; 95% $184,371; 99%
$473,923; 99.9% $2,793,265.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Detail Table - Head of Household Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Average Federal Tax Rate 5
Share of Federal Taxes
Dollars
Percent
Change
(% Points)
Under the
Proposal
Change
(% Points)
Under the
Proposal
2.5
0.4
0.1
0.0
-1.0
0.4
103.0
26.3
6.7
-0.9
-36.2
100.0
-628
-213
-78
21
2,411
-230
53.7
-7.5
-0.7
0.1
3.1
-3.0
-3.3
-0.5
0.7
1.0
2.2
0.0
-9.0
10.0
30.2
31.3
37.4
100.0
-2.6
-0.4
-0.1
0.0
0.8
-0.4
-7.5
5.2
13.6
17.9
26.1
11.7
-0.1
-0.4
-1.1
-2.8
-3.1
-1.1
-2.2
-8.1
-24.8
-11.6
113
855
3,271
47,743
265,862
0.3
1.4
3.4
5.7
5.7
0.4
0.2
0.5
1.2
0.5
10.9
4.9
7.5
14.2
6.6
0.1
0.3
0.8
1.9
2.0
20.9
23.3
25.1
34.7
37.0
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
10,087
7,600
5,258
2,767
923
26,775
37.7
28.4
19.6
10.3
3.5
100.0
23,866
50,782
85,209
127,009
312,466
64,080
14.0
22.5
26.1
20.5
16.8
100.0
-1,170
2,862
11,645
22,741
78,974
7,743
-5.7
10.5
29.5
30.4
35.2
100.0
25,036
47,920
73,564
104,268
233,492
56,337
16.7
24.1
25.6
19.1
14.3
100.0
-4.9
5.6
13.7
17.9
25.3
12.1
577
161
153
32
3
2.2
0.6
0.6
0.1
0.0
180,975
261,097
391,241
2,574,380
13,287,094
6.1
2.5
3.5
4.8
2.1
37,707
60,083
95,030
844,264
4,647,713
10.5
4.7
7.0
13.0
6.0
143,268
201,014
296,211
1,730,116
8,639,381
5.5
2.2
3.0
3.7
1.5
20.8
23.0
24.3
32.8
35.0
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2013 dollars): 20% $18,678; 40% $35,821; 60% $60,717; 80% $95,966; 90% $135,210; 95% $184,371; 99%
$473,923; 99.9% $2,793,265.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Detail Table - Tax Units with Children
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Share of Federal Taxes
Dollars
Percent
Change
(% Points)
Average Federal Tax Rate
Under the
Proposal
Change
(% Points)
5
Under the
Proposal
2.5
0.6
0.1
0.1
-1.3
-0.4
-29.7
-13.4
-2.8
-4.1
150.5
100.0
-682
-340
-72
-111
4,860
525
44.5
-9.1
-0.5
-0.4
3.6
1.7
-0.5
-0.3
-0.2
-0.4
1.3
0.0
-1.6
2.2
9.3
18.0
71.9
100.0
-2.7
-0.6
-0.1
-0.1
0.9
0.3
-8.7
5.8
13.4
16.8
26.9
20.0
-0.1
-0.8
-1.6
-2.5
-2.8
2.5
17.8
39.9
90.2
41.3
163
2,182
7,128
58,714
281,709
0.3
2.8
4.7
4.9
5.0
-0.2
0.1
0.4
1.0
0.5
13.9
10.9
14.9
32.3
14.4
0.1
0.6
1.2
1.7
1.8
19.9
22.0
26.0
35.4
37.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
12,783
11,562
11,260
10,716
9,078
55,806
22.9
20.7
20.2
19.2
16.3
100.0
25,475
58,693
108,192
175,109
518,134
157,555
3.7
7.7
13.9
21.3
53.5
100.0
-1,535
3,742
14,573
29,599
134,237
30,938
-1.1
2.5
9.5
18.4
70.6
100.0
27,010
54,951
93,619
145,510
383,897
126,617
4.9
9.0
14.9
22.1
49.3
100.0
-6.0
6.4
13.5
16.9
25.9
19.6
4,587
2,398
1,642
450
43
8.2
4.3
2.9
0.8
0.1
267,619
364,164
611,192
3,551,563
15,743,917
14.0
9.9
11.4
18.2
7.7
52,955
77,821
151,741
1,199,171
5,599,871
14.1
10.8
14.4
31.3
13.9
214,664
286,343
459,451
2,352,392
10,144,047
13.9
9.7
10.7
15.0
6.2
19.8
21.4
24.8
33.8
35.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2013 dollars): 20% $18,678; 40% $35,821; 60% $60,717; 80% $95,966; 90% $135,210; 95% $184,371; 99%
$473,923; 99.9% $2,793,265.
(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.
30-Jun-14
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T14-0054
Administration's FY 2015 Budget Proposal
All Major Tax Provisions
Distribution of Federal Tax Change by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Detail Table - Elderly Tax Units
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Percent
Change in
After-Tax
Income 4
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
Percent
Share of Federal Taxes
Change
(% Points)
Average Federal Tax Rate
Under the
Proposal
Change
(% Points)
5
Under the
Proposal
0.1
0.1
-0.1
-0.3
-2.5
-1.4
-0.2
-0.4
1.0
4.0
95.4
100.0
-20
-24
51
279
6,700
1,320
-12.9
-2.4
0.9
1.8
7.8
6.4
0.0
-0.1
-0.3
-0.6
1.0
0.0
0.1
1.1
6.1
13.5
79.2
100.0
-0.1
-0.1
0.1
0.2
1.9
1.1
0.8
2.7
8.1
13.6
26.0
18.9
-1.2
-0.9
-1.9
-4.9
-5.8
11.8
6.0
17.4
60.2
30.9
1,661
1,731
5,911
85,166
429,476
5.8
3.7
6.5
10.1
10.9
-0.1
-0.3
0.0
1.3
0.8
12.9
10.0
17.0
39.3
18.8
1.0
0.7
1.5
3.3
3.8
17.6
19.7
24.0
35.9
38.5
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Expanded Cash Income Percentile Adjusted for Family Size, 2023 ¹
Expanded Cash Income
Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Tax Units
Number
(thousands)
Pre-Tax Income
Percent of Total
Average (dollars)
Federal Tax Burden
Percent of Total
Average (dollars)
Percent of
Total
After-Tax Income 4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 5
5,833
10,414
10,781
8,405
8,262
43,929
13.3
23.7
24.5
19.1
18.8
100.0
17,250
36,841
67,748
114,203
357,289
116,731
2.0
7.5
14.2
18.7
57.6
100.0
153
1,034
5,409
15,266
86,257
20,763
0.1
1.2
6.4
14.1
78.1
100.0
17,097
35,807
62,339
98,937
271,032
95,968
2.4
8.9
15.9
19.7
53.1
100.0
0.9
2.8
8.0
13.4
24.1
17.8
4,122
2,025
1,704
410
42
9.4
4.6
3.9
0.9
0.1
171,828
243,653
403,624
2,590,079
11,326,380
13.8
9.6
13.4
20.7
9.2
28,611
46,264
90,963
843,650
3,934,661
12.9
10.3
17.0
37.9
18.0
143,218
197,388
312,661
1,746,429
7,391,719
14.0
9.5
12.6
17.0
7.3
16.7
19.0
22.5
32.6
34.7
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
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) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The incomes used are adjusted for family size by
dividing by the square root of the number of people in the tax unit. The resulting percentile breaks are (in 2013 dollars): 20% $18,678; 40% $35,821; 60% $60,717; 80% $95,966; 90% $135,210; 95% $184,371; 99%
$473,923; 99.9% $2,793,265.
(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.