25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Click on PDF or Excel link above for additional tables containing more detail and breakdowns by filing status and demographic groups.
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile, 2011 1
Summary Table
Percent of Tax Units4
2,3
Cash Income Percentile
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent
Change in
After-Tax
5
Income
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
6
Average Federal Tax Rate
Change (%
Points)
Under the
Proposal
3.0
4.4
5.2
6.7
1.8
4.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.1
0.0
0.0
0.0
0.0
33.8
24.0
16.2
22.5
3.3
100.0
-28
-21
-16
-26
-4
-20
-0.3
-0.1
0.0
0.0
0.0
0.0
4.4
11.1
17.2
21.1
27.7
22.9
3.4
0.1
0.1
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.2
0.1
0.1
0.0
0.0
-8
0
0
0
0
0.0
0.0
0.0
0.0
0.0
23.9
25.8
27.3
32.2
35.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 16.6
Proposal: 16.8
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to
$3,000 for one child and $6,000 for two or more children; increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the
credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down from $15,000 to $85,000. Proposal would also
make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $17,709, 40% $34,668, 60% $63,846, 80% $104,388, 90% $167,146, 95% $210,251, 99% $555,037, 99.9% $2,351,648.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile, 2011 1
Detail Table
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
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 6
Change (%
Points)
Under the
Proposal
3.0
4.4
5.2
6.7
1.8
4.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.1
0.0
0.0
0.0
0.0
33.8
24.0
16.2
22.5
3.3
100.0
-28
-21
-16
-26
-4
-20
-5.7
-0.7
-0.2
-0.2
0.0
-0.1
0.0
0.0
0.0
0.0
0.1
0.0
0.7
4.0
10.2
18.3
66.6
100.0
-0.3
-0.1
0.0
0.0
0.0
0.0
4.4
11.1
17.2
21.1
27.7
22.9
3.4
0.1
0.1
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.2
0.1
0.1
0.0
0.0
-8
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
14.9
10.7
16.5
24.6
12.6
0.0
0.0
0.0
0.0
0.0
23.9
25.8
27.3
32.2
35.4
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile, 2011 1
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
37,292
34,806
31,498
26,231
22,974
155,368
24.0
22.4
20.3
16.9
14.8
100.0
10,481
26,186
48,373
84,329
267,017
71,667
487
2,939
8,316
17,837
74,046
16,448
9,993
23,247
40,057
66,492
192,971
55,219
4.7
11.2
17.2
21.2
27.7
23.0
3.5
8.2
13.7
19.9
55.1
100.0
4.3
9.4
14.7
20.3
51.7
100.0
0.7
4.0
10.3
18.3
66.6
100.0
11,625
5,563
4,611
1,175
119
7.5
3.6
3.0
0.8
0.1
136,507
191,223
333,276
1,657,137
7,672,765
32,666
49,251
91,067
534,066
2,714,591
103,841
141,971
242,209
1,123,071
4,958,174
23.9
25.8
27.3
32.2
35.4
14.3
9.6
13.8
17.5
8.2
14.1
9.2
13.0
15.4
6.9
14.9
10.7
16.4
24.6
12.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 16.6
Proposal: 16.8
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $17,709, 40%
$34,668, 60% $63,846, 80% $104,388, 90% $167,146, 95% $210,251, 99% $555,037, 99.9% $2,351,648.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
4.4
5.2
5.5
5.6
0.4
4.2
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.1
0.1
0.0
0.0
0.0
40.1
21.4
19.1
18.2
1.1
100.0
-40
-20
-19
-19
-1
-20
-32.6
-0.9
-0.3
-0.1
0.0
-0.1
-0.1
0.0
0.0
0.0
0.1
0.0
0.1
2.9
8.5
17.2
71.2
100.0
-0.4
-0.1
0.0
0.0
0.0
0.0
0.8
9.7
16.3
20.1
27.6
22.9
0.7
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
-2
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.8
11.9
17.7
25.7
13.1
0.0
0.0
0.0
0.0
0.0
24.1
25.3
27.1
32.1
35.3
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2011
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Percent of
Total
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Average
Federal Tax
Rate6
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
30,760
32,347
31,060
29,561
29,073
155,368
19.8
20.8
20.0
19.0
18.7
100.0
9,877
23,756
42,993
73,609
226,631
71,667
122
2,334
7,009
14,830
62,467
16,448
9,755
21,422
35,984
58,778
164,164
55,219
1.2
9.8
16.3
20.2
27.6
23.0
2.7
6.9
12.0
19.5
59.2
100.0
3.5
8.1
13.0
20.3
55.6
100.0
0.2
3.0
8.5
17.2
71.1
100.0
14,540
7,282
5,823
1,428
142
9.4
4.7
3.8
0.9
0.1
115,046
165,470
286,103
1,431,804
6,683,662
27,707
41,820
77,646
459,674
2,357,235
87,340
123,651
208,457
972,130
4,326,427
24.1
25.3
27.1
32.1
35.3
15.0
10.8
15.0
18.4
8.5
14.8
10.5
14.2
16.2
7.2
15.8
11.9
17.7
25.7
13.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
Number of AMT Taxpayers (millions). Baseline: 16.6
Proposal: 16.8
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747, 99.9%
$1,413,195.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Single Tax Units
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
1.8
0.8
0.3
0.1
0.1
0.7
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.0
0.0
0.0
84.9
9.0
4.2
0.9
1.0
100.0
-17
-2
-1
0
0
-5
-3.1
-0.1
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
1.4
5.2
12.7
19.6
60.9
100.0
-0.2
0.0
0.0
0.0
0.0
0.0
6.9
11.2
17.6
21.2
28.3
22.5
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
-1
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
17.4
8.6
15.1
19.9
9.4
0.0
0.0
0.0
0.0
0.0
25.1
25.8
27.2
34.8
38.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2011
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
16,453
15,785
14,027
10,881
9,172
67,885
24.2
23.3
20.7
16.0
13.5
100.0
7,653
18,188
31,881
52,390
144,769
40,448
548
2,040
5,597
11,110
41,017
9,101
7,105
16,148
26,284
41,280
103,752
31,347
5,247
1,793
1,749
383
34
7.7
2.6
2.6
0.6
0.1
81,466
114,230
195,211
924,978
4,473,332
20,462
29,432
53,124
321,685
1,728,410
61,004
84,797
142,087
603,294
2,744,922
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
7.2
11.2
17.6
21.2
28.3
22.5
4.6
10.5
16.3
20.8
48.4
100.0
5.5
12.0
17.3
21.1
44.7
100.0
1.5
5.2
12.7
19.6
60.9
100.0
25.1
25.8
27.2
34.8
38.6
15.6
7.5
12.4
12.9
5.5
15.0
7.2
11.7
10.9
4.3
17.4
8.5
15.0
19.9
9.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747, 99.9%
$1,413,195.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Married Tax Units Filing Jointly
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
1.7
3.6
6.5
8.0
0.4
4.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
7.7
11.2
32.4
46.9
1.5
100.0
-10
-10
-23
-25
-1
-13
-3.9
-0.3
-0.3
-0.1
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
1.5
5.5
15.2
77.6
100.0
-0.1
0.0
0.0
0.0
0.0
0.0
1.9
9.8
15.1
19.4
27.4
24.0
0.7
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.3
0.1
0.1
0.0
0.0
-1
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
15.6
13.8
19.7
28.5
14.4
0.0
0.0
0.0
0.0
0.0
23.7
25.2
27.2
31.5
34.6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2011
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
6,220
8,746
11,392
15,301
18,311
60,792
10.2
14.4
18.7
25.2
30.1
100.0
12,978
30,404
55,534
89,245
270,238
119,608
254
3,003
8,399
17,370
73,941
28,721
12,724
27,401
47,135
71,875
196,298
90,887
8,308
5,185
3,832
986
100
13.7
8.5
6.3
1.6
0.2
138,140
184,120
329,973
1,603,838
7,292,608
32,723
46,350
89,819
504,561
2,524,969
105,418
137,770
240,153
1,099,278
4,767,639
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.0
9.9
15.1
19.5
27.4
24.0
1.1
3.7
8.7
18.8
68.1
100.0
1.4
4.3
9.7
19.9
65.1
100.0
0.1
1.5
5.5
15.2
77.5
100.0
23.7
25.2
27.2
31.5
34.6
15.8
13.1
17.4
21.8
10.0
15.9
12.9
16.7
19.6
8.6
15.6
13.8
19.7
28.5
14.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747, 99.9%
$1,413,195.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Head of Household Tax Units
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
12.0
16.5
18.4
15.6
3.8
14.7
0.0
0.0
0.0
0.0
0.0
0.0
0.9
0.3
0.2
0.1
0.0
0.2
46.2
27.9
16.0
8.9
1.0
100.0
-113
-72
-61
-62
-16
-79
12.4
-3.5
-0.8
-0.4
0.0
-1.4
-0.7
-0.2
0.2
0.3
0.5
0.0
-5.8
10.7
27.5
31.0
36.5
100.0
-0.9
-0.3
-0.1
-0.1
0.0
-0.2
-8.4
7.2
16.5
21.2
26.0
14.9
6.0
0.5
0.0
0.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.9
0.0
0.0
0.0
0.0
-26
-2
0
-5
0
-0.1
0.0
0.0
0.0
0.0
0.2
0.1
0.1
0.1
0.1
12.5
6.8
7.3
9.9
4.9
0.0
0.0
0.0
0.0
0.0
23.8
25.2
24.3
32.0
34.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2011
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
7,828
7,381
4,991
2,741
1,111
24,178
32.4
30.5
20.6
11.3
4.6
100.0
12,145
27,927
46,364
74,093
175,378
38,406
-907
2,077
7,713
15,733
45,585
5,816
13,052
25,850
38,651
58,360
129,793
32,590
682
241
155
32
3
2.8
1.0
0.6
0.1
0.0
106,498
155,730
269,959
1,323,451
6,199,747
25,417
39,258
65,464
423,592
2,164,681
81,080
116,472
204,495
899,859
4,035,067
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-7.5
7.4
16.6
21.2
26.0
15.1
10.2
22.2
24.9
21.9
21.0
100.0
13.0
24.2
24.5
20.3
18.3
100.0
-5.1
10.9
27.4
30.7
36.0
100.0
23.9
25.2
24.3
32.0
34.9
7.8
4.1
4.5
4.6
2.1
7.0
3.6
4.0
3.7
1.6
12.3
6.7
7.2
9.7
4.9
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
(1) Calendar year. Baseline is current law plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747, 99.9%
$1,413,195.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Tax Units with Children
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
11.6
15.1
16.3
16.5
1.3
12.4
0.0
0.0
0.0
0.0
0.0
0.0
0.7
0.2
0.1
0.1
0.0
0.1
38.0
21.2
20.2
19.3
1.2
100.0
-104
-58
-56
-55
-4
-57
9.4
-2.2
-0.6
-0.3
0.0
-0.3
-0.1
-0.1
0.0
0.0
0.2
0.0
-1.2
2.6
10.0
19.7
68.8
100.0
-0.8
-0.2
-0.1
-0.1
0.0
-0.1
-9.3
8.1
17.4
21.4
28.5
23.0
2.3
0.3
0.2
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.1
0.1
0.0
0.0
0.0
-7
-1
-1
0
0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.1
0.1
0.0
17.7
10.8
17.0
23.3
11.5
0.0
0.0
0.0
0.0
0.0
25.2
25.9
28.4
33.4
35.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2011
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
10,146
10,182
10,047
9,721
8,416
48,902
20.8
20.8
20.5
19.9
17.2
100.0
13,131
31,660
58,167
96,287
292,032
90,398
-1,114
2,616
10,184
20,643
83,212
20,860
14,245
29,044
47,983
75,644
208,819
69,538
4,474
2,031
1,536
376
36
9.2
4.2
3.1
0.8
0.1
160,074
208,849
396,436
1,884,947
9,014,245
40,308
54,074
112,757
630,411
3,224,083
119,766
154,775
283,678
1,254,536
5,790,162
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-8.5
8.3
17.5
21.4
28.5
23.1
3.0
7.3
13.2
21.2
55.6
100.0
4.3
8.7
14.2
21.6
51.7
100.0
-1.1
2.6
10.0
19.7
68.7
100.0
25.2
25.9
28.4
33.4
35.8
16.2
9.6
13.8
16.0
7.4
15.8
9.2
12.8
13.9
6.2
17.7
10.8
17.0
23.2
11.4
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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 plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747, 99.9%
$1,413,195.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
25-Jan-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0020
Child and Dependent Care Tax Credit: Increase Phaseout Threshold to $85,000 and
Make Credit Fully Refundable: 90-Percent Participation Assumption
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2011
Detail Table - Elderly Tax Units
Percent of Tax Units 4
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax
Increase
Percent Change
in After-Tax
Income5
Share of Total
Federal Tax
Change
Average Federal Tax Change
Dollars
1
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.1
0.0
0.2
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
33.2
2.3
37.7
20.7
6.2
100.0
0
0
0
0
0
0
-0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
1.5
3.5
10.6
84.1
100.0
0.0
0.0
0.0
0.0
0.0
0.0
2.3
3.8
6.3
12.0
26.2
19.5
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
6.2
0.0
0.0
0.0
0.0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
10.1
11.4
21.9
40.7
20.6
0.0
0.0
0.0
0.0
0.0
18.2
21.3
25.2
32.5
36.1
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Baseline Distribution of Income and Federal Taxes
by Cash Income Percentile Adjusted for Family Size, 2011
Tax Units4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
Average AfterTax Income5
(Dollars)
Number
(thousands)
Percent of
Total
4,348
7,946
6,155
5,447
5,552
29,671
14.7
26.8
20.7
18.4
18.7
100.0
9,801
20,388
38,029
67,549
241,246
72,264
227
781
2,380
8,130
63,219
14,068
9,574
19,607
35,649
59,419
178,028
58,196
2,283
1,440
1,410
418
41
7.7
4.9
4.8
1.4
0.1
101,663
154,504
256,863
1,249,575
5,802,387
18,500
32,891
64,775
406,621
2,092,684
83,163
121,613
192,087
842,955
3,709,704
1
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
3.8
6.3
12.0
26.2
19.5
2.0
7.6
10.9
17.2
62.5
100.0
2.4
9.0
12.7
18.7
57.2
100.0
0.2
1.5
3.5
10.6
84.1
100.0
18.2
21.3
25.2
32.5
36.1
10.8
10.4
16.9
24.4
11.1
11.0
10.1
15.7
20.4
8.8
10.1
11.4
21.9
40.7
20.6
Average
Federal Tax
Rate6
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-4).
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 plus the following EGTRRA extensions: increase the maximum credit rate to 35 percent; increase the eligible expenses to $3,000 for one child and $6,000 for two or more children;
increase the start of the credit rate phasedown to $15,000 of AGI (not indexed for inflation); and allow the credit regardless of tentative AMT. Proposal would increase the threshold at which the credit rate begins to phase down
from $15,000 to $85,000. Proposal would also make the CDCTC fully refundable regardless of income tax liability. Estimates assume a 90-percent participation rate for newly-eligible tax units.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) The cash 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 2009 dollars): 20% $11,939, 40% $23,027, 60% $39,580, 80% $66,854, 90% $96,556, 95% $135,474, 99% $347,747, 99.9%
$1,413,195.
(4) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(5) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(6) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.