30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income Tax Provisions Distribution of Federal Tax Change by Expanded Cash Income Level, 2023 ¹ Summary Table 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 with Tax Increase or Cut 3 With Tax Cut Pct of Tax Units 52.5 51.9 31.2 25.1 22.2 16.7 10.6 11.7 0.9 * 0.0 22.6 With Tax Increase Avg Tax Cut -676 -905 -932 -962 -899 -869 -901 -1,010 -1,341 ** 0 -895 Pct of Tax Units 0.0 0.0 0.0 * * * * 0.3 34.6 96.8 98.8 4.2 Avg Tax Increase 0 0 0 ** ** ** ** 3,149 3,842 8,708 73,113 13,956 Percent Change in After-Tax 4 Income 5.2 2.6 1.0 0.6 0.4 0.2 0.1 0.1 -0.5 -1.4 -2.8 -0.4 Share of Total Federal Tax Change Average Federal Tax Change ($) -4.8 -14.6 -9.0 -5.4 -3.7 -5.7 -2.5 -5.6 27.2 18.5 105.9 100.0 -355 -469 -291 -242 -200 -145 -96 -107 1,315 8,427 72,258 385 Average Federal Tax Rate5 Change (% Points) -4.9 -2.5 -0.9 -0.6 -0.4 -0.2 -0.1 -0.1 0.4 1.0 1.9 0.3 Under the Proposal 0.5 1.5 4.2 6.3 9.0 13.5 15.7 17.7 22.2 28.1 35.7 20.5 Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0613-3). Number of AMT Taxpayers (millions). Baseline: 6.1 Proposal: 5.9 * Less than 0.05 ** Insufficient data (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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income. 30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income 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 of Tax Units 3 With Tax Cut With Tax Increase 52.5 51.9 31.2 25.1 22.2 16.7 10.6 11.7 0.9 * 0.0 22.6 0.0 0.0 0.0 * * * * 0.3 34.6 96.8 98.8 4.2 Percent Change in After-Tax Income 4 5.2 2.6 1.0 0.6 0.4 0.2 0.1 0.1 -0.5 -1.4 -2.8 -0.4 Share of Total Federal Tax Change -4.8 -14.6 -9.0 -5.4 -3.7 -5.7 -2.5 -5.6 27.2 18.5 105.9 100.0 Average Federal Tax Change Dollars Percent -355 -469 -291 -242 -200 -145 -96 -107 1,315 8,427 72,258 385 -90.0 -62.8 -18.2 -8.2 -3.8 -1.4 -0.6 -0.4 1.7 3.8 5.5 1.5 Share of Federal Taxes Change (% Points) -0.1 -0.2 -0.1 -0.1 -0.1 -0.2 -0.1 -0.4 0.1 0.2 1.1 0.0 Under the Proposal 0.0 0.1 0.6 0.9 1.4 6.0 6.4 23.4 23.4 7.6 30.1 100.0 Average Federal Tax Rate5 Change (% Points) -4.9 -2.5 -0.9 -0.6 -0.4 -0.2 -0.1 -0.1 0.4 1.0 1.9 0.3 Under the Proposal 0.5 1.5 4.2 6.3 9.0 13.5 15.7 17.7 22.2 28.1 35.7 20.5 Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2023 ¹ 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 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 4 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 5 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 * Less than 0.05 (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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income. 30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income 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 of Tax Units 3 With Tax Cut With Tax Increase 52.5 45.0 19.2 11.0 7.9 6.4 2.5 0.3 * 0.0 0.0 20.3 0.0 0.0 0.0 * * * 0.0 0.1 63.6 91.9 97.4 1.6 Percent Change in After-Tax 4 Income 5.4 2.1 0.5 0.2 0.1 0.1 0.0 0.0 -0.6 -1.4 -3.9 -0.1 Share of Total Federal Tax Change -74.0 -151.6 -51.1 -16.6 -8.0 -16.6 -5.1 0.6 64.0 37.1 323.8 100.0 Average Federal Tax Change Dollars Percent -356 -362 -145 -77 -47 -49 -29 3 1,600 8,137 97,315 47 -61.6 -26.5 -5.6 -1.9 -0.7 -0.4 -0.1 0.0 1.9 3.3 6.8 0.4 Share of Federal Taxes Change (% Points) -0.3 -0.6 -0.2 -0.1 -0.1 -0.1 -0.1 -0.1 0.2 0.1 1.1 0.0 Under the Proposal 0.2 1.6 3.2 3.2 4.1 15.9 13.3 22.4 12.8 4.4 18.9 100.0 Average Federal Tax Rate5 Change (% Points) -5.0 -1.9 -0.5 -0.2 -0.1 -0.1 0.0 0.0 0.5 1.0 2.5 0.1 Under the Proposal 3.1 5.3 7.9 9.1 11.4 16.5 18.8 20.9 25.0 31.2 38.9 18.8 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) 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 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 4 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 5 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). * Less than 0.05 (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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income. 30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income 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 of Tax Units 3 With Tax Cut With Tax Increase 33.2 50.0 46.2 44.9 44.0 27.7 15.3 15.1 1.0 * 0.0 18.8 0.0 0.0 0.0 0.0 * * 0.1 * 30.5 97.5 99.1 8.4 Percent Change in After-Tax 4 Income 2.9 2.8 1.6 1.1 0.8 0.3 0.1 0.1 -0.5 -1.4 -2.6 -0.6 Share of Total Federal Tax Change -0.2 -1.2 -2.0 -2.0 -1.9 -2.8 -1.3 -5.8 21.9 15.5 80.0 100.0 Average Federal Tax Change Dollars -187 -544 -476 -443 -405 -229 -109 -154 1,250 8,406 67,015 1,006 Percent -225.4 -280.5 -51.7 -20.6 -10.1 -2.9 -0.8 -0.5 1.7 3.8 5.2 2.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 -0.1 -0.1 -0.1 -0.1 -0.6 -0.1 0.1 1.0 0.0 Under the Proposal 0.0 0.0 0.0 0.2 0.4 2.0 3.5 23.2 27.7 8.9 34.0 100.0 Average Federal Tax Rate5 Change (% Points) -2.9 -2.8 -1.5 -1.0 -0.7 -0.3 -0.1 -0.1 0.4 1.0 1.7 0.5 Under the Proposal -1.6 -1.8 1.4 3.9 6.4 9.9 13.1 16.8 21.7 27.7 35.2 22.0 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) 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 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 4 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 5 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). * Less than 0.05 (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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income. 30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income 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 of Tax Units 3 With Tax Cut With Tax Increase 70.3 78.4 54.5 38.9 31.7 25.3 17.8 6.4 * * 0.0 41.2 0.0 0.0 0.0 * 0.0 * 0.0 0.0 48.5 92.3 97.0 0.6 Percent Change in After-Tax 4 Income 5.6 4.1 1.8 1.0 0.6 0.4 0.3 0.0 -0.8 -1.2 -2.7 0.6 Share of Total Federal Tax Change 5.4 38.0 29.1 16.8 9.2 13.2 6.3 1.0 -4.9 -1.9 -13.1 100.0 Average Federal Tax Change Dollars Percent -491 -828 -566 -422 -326 -253 -236 -43 1,931 6,934 69,363 -354 68.0 69.0 84.8 -33.5 -9.3 -2.7 -1.4 -0.1 2.4 3.1 5.3 -4.6 Share of Federal Taxes Change (% Points) -0.3 -1.9 -1.5 -0.7 -0.2 0.4 0.7 1.5 0.7 0.2 1.2 0.0 Under the Proposal -0.6 -4.5 -3.0 1.6 4.3 22.8 21.1 32.6 10.1 3.1 12.5 100.0 Average Federal Tax Rate5 Change (% Points) -6.1 -4.4 -1.8 -1.0 -0.6 -0.3 -0.2 0.0 0.6 0.9 1.8 -0.6 Under the Proposal -15.1 -10.7 -4.0 1.9 5.8 11.9 15.5 19.0 24.6 28.1 35.4 11.5 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 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 4 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 5 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). * Less than 0.05 (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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income. 30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income 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 of Tax Units 3 With Tax Cut With Tax Increase 66.8 78.6 62.0 54.9 53.2 40.4 25.0 21.6 1.6 * 0.0 36.7 0.0 0.0 0.0 * 0.0 0.1 0.1 0.2 32.5 98.1 99.4 5.8 Percent Change in After-Tax Income 4 5.0 4.0 2.1 1.4 1.0 0.5 0.2 0.2 -0.6 -1.5 -2.2 -0.3 Share of Total Federal Tax Change -3.0 -20.7 -20.7 -14.6 -10.7 -14.9 -6.7 -16.6 55.4 31.7 122.0 100.0 Average Federal Tax Change Dollars -439 -829 -671 -594 -546 -367 -228 -215 1,561 9,021 56,204 337 Percent 43.0 44.8 53.1 -120.8 -18.1 -4.5 -1.5 -0.7 2.1 4.1 4.4 1.1 Share of Federal Taxes Change (% Points) 0.0 -0.2 -0.2 -0.2 -0.1 -0.2 -0.1 -0.4 0.3 0.3 1.0 0.0 Under the Proposal -0.1 -0.7 -0.6 0.0 0.5 3.4 4.6 23.9 28.8 8.7 31.5 100.0 Average Federal Tax Rate5 Change (% Points) -5.6 -4.3 -2.2 -1.4 -1.0 -0.5 -0.2 -0.1 0.5 1.1 1.5 0.2 Under the Proposal -18.7 -14.0 -6.3 -0.2 4.4 10.2 13.5 16.5 21.7 27.7 35.4 19.9 Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2023 ¹ 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 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 4 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 5 -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). * Less than 0.05 Note: Tax units with children are those claiming an exemption for children at home or away from home. (1) Calendar year. Baseline is current law. Proposal would (a) 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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income. 30-Jun-14 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T14-0056 Administration's FY 2015 Budget Proposal Major Individual Income 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 of Tax Units 3 With Tax Cut With Tax Increase 4.4 3.8 6.3 6.4 6.0 5.8 4.6 3.7 0.2 0.0 0.0 4.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 32.8 93.2 98.1 3.1 Percent Change in After-Tax Income 4 0.6 0.2 0.2 0.1 0.1 0.1 0.0 0.0 -0.3 -1.3 -4.2 -0.7 Share of Total Federal Tax Change -0.2 -0.6 -1.1 -0.8 -0.6 -1.2 -0.6 -0.8 7.8 8.7 89.5 100.0 Average Federal Tax Change Dollars -40 -34 -55 -51 -41 -47 -34 -30 898 8,022 104,794 644 Percent -45.2 -23.4 -10.8 -3.0 -1.2 -0.6 -0.2 -0.1 1.2 3.5 8.4 3.1 Share of Federal Taxes Change (% Points) 0.0 0.0 0.0 -0.1 -0.1 -0.2 -0.2 -0.7 -0.4 0.0 1.7 0.0 Under the Proposal 0.0 0.1 0.3 0.8 1.6 6.0 7.2 22.1 19.4 7.7 34.8 100.0 Average Federal Tax Rate5 Change (% Points) -0.6 -0.2 -0.2 -0.1 -0.1 -0.1 0.0 0.0 0.3 1.0 2.8 0.6 Under the Proposal 0.7 0.6 1.5 3.8 6.4 9.9 13.0 16.0 21.4 28.3 36.1 18.3 Baseline Distribution of Income and Federal Taxes by Expanded Cash Income Level, 2023 ¹ 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 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 4 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 5 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). * Less than 0.05 Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older. (1) Calendar year. Baseline is current law. Proposal would (a) 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) increase earned income tax credit for taxpayers without qualifying children by doubling maximum credit and expanding age eligibility; (d) expand child and dependent care tax credit for qualifying children under 5; (e) limit the value of itemized deductions and certain other deductions and exclusions to 28 percent; and (f) enact the Fair Share Tax (“Buffett rule”). For a description of TPC's current law baseline, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see http://www.taxpolicycenter.org/TaxModel/income.cfm (3) Includes tax units with a change in federal tax burden of $10 or more in absolute value. (4) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax. (5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average expanded cash income.