19-Mar-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 T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
1
Distribution of Federal Tax Change by Cash Income Percentile, 2013
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 ($)
Average Federal Tax Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.2
2.7
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,517
225
0.0
0.0
0.0
0.0
0.5
0.3
5.2
12.2
18.2
21.7
28.8
23.8
0.0
0.0
0.0
0.0
0.0
0.3
2.9
64.2
89.3
98.1
0.0
0.0
-0.4
-1.9
-2.7
0.0
0.2
14.6
85.2
51.8
1
9
1,110
25,474
153,204
0.0
0.0
0.3
1.3
1.7
24.7
25.9
28.1
33.6
36.9
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: 21.0
Proposal: 21.0
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married
couples filing a joint return) as defined for purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment
income would include taxable interest, dividends, net positive capital gains, net positive income from rents, net positive income from royalties, and net positive
passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's adjusted gross income in excess of
$200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $19,599, 40% $37,843, 60% $66,647, 80% $113,886, 90% $164,974, 95% $231,179, 99% $624,396, 99.9% $2,875,812.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile, 2013 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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.2
2.7
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,517
225
0.0
0.0
0.0
0.0
1.8
1.2
0.0
-0.1
-0.1
-0.2
0.4
0.0
0.8
4.3
10.5
18.0
66.3
100.0
0.0
0.0
0.0
0.0
0.5
0.3
5.2
12.2
18.2
21.7
28.8
23.8
0.0
0.0
0.0
0.0
0.0
0.3
2.9
64.2
89.3
98.1
0.0
0.0
-0.4
-1.9
-2.7
0.0
0.2
14.6
85.2
51.8
1
9
1,110
25,474
153,204
0.0
0.0
1.1
4.1
4.9
-0.2
-0.1
0.0
0.7
0.5
14.1
10.2
15.9
26.1
13.2
0.0
0.0
0.3
1.3
1.7
24.7
25.9
28.1
33.6
36.9
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, 2013 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
38,935
35,530
32,336
27,082
23,647
159,683
24.4
22.3
20.3
17.0
14.8
100.0
11,951
29,492
53,428
91,635
291,777
78,831
620
3,596
9,740
19,872
82,368
18,515
11,330
25,896
43,688
71,764
209,409
60,316
5.2
12.2
18.2
21.7
28.2
23.5
3.7
8.3
13.7
19.7
54.8
100.0
4.6
9.6
14.7
20.2
51.4
100.0
0.8
4.3
10.7
18.2
65.9
100.0
11,930
5,814
4,704
1,200
121
7.5
3.6
3.0
0.8
0.1
142,602
202,693
359,698
1,939,600
8,825,114
35,258
52,547
99,923
626,199
3,099,584
107,344
150,147
259,775
1,313,400
5,725,530
24.7
25.9
27.8
32.3
35.1
13.5
9.4
13.4
18.5
8.5
13.3
9.1
12.7
16.4
7.2
14.2
10.3
15.9
25.4
12.7
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: 21.0
Proposal: 21.0
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $19,599, 40%
$37,843, 60% $66,647, 80% $113,886, 90% $164,974, 95% $231,179, 99% $624,396, 99.9% $2,875,812.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table
Percent of Tax Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
14.2
2.7
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,182
225
0.0
0.0
0.0
0.0
1.7
1.2
0.0
0.0
-0.1
-0.2
0.4
0.0
0.3
3.2
8.6
17.1
70.8
100.0
0.0
0.0
0.0
0.0
0.5
0.3
2.3
10.8
17.0
21.0
28.5
23.8
0.0
0.0
0.0
0.0
0.0
0.1
3.3
46.4
86.7
96.3
0.0
0.0
-0.3
-1.9
-2.6
0.0
0.2
12.4
87.4
53.5
0
10
739
21,719
133,298
0.0
0.0
0.9
4.0
4.9
-0.2
-0.1
-0.1
0.7
0.5
15.2
11.4
17.0
27.2
13.7
0.0
0.0
0.2
1.3
1.7
24.5
25.9
27.8
33.4
36.5
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, 2013 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
32,029
32,970
31,818
30,385
30,329
159,683
20.1
20.7
19.9
19.0
19.0
100.0
11,281
26,786
47,337
79,916
245,421
78,831
262
2,891
8,047
16,813
68,653
18,515
11,019
23,895
39,289
63,103
176,768
60,316
2.3
10.8
17.0
21.0
28.0
23.5
2.9
7.0
12.0
19.3
59.1
100.0
3.7
8.2
13.0
19.9
55.7
100.0
0.3
3.2
8.7
17.3
70.4
100.0
15,226
7,667
5,993
1,444
144
9.5
4.8
3.8
0.9
0.1
121,507
172,468
306,082
1,687,975
7,770,939
29,768
44,614
84,296
541,506
2,701,780
91,739
127,854
221,786
1,146,469
5,069,158
24.5
25.9
27.5
32.1
34.8
14.7
10.5
14.6
19.4
8.9
14.5
10.2
13.8
17.2
7.6
15.3
11.6
17.1
26.4
13.2
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: 21.0
Proposal: 21.0
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $13,465, 40% $25,159, 60% $42,626, 80% $69,583, 90% $100,255, 95% $141,875, 99% $375,887,
99.9% $1,773,679.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.5
1.0
0.0
0.0
0.0
0.0
-0.5
-0.2
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
576
80
0.0
0.0
0.0
0.0
1.3
0.8
0.0
0.0
-0.1
-0.2
0.3
0.0
1.5
5.2
12.4
20.4
60.5
100.0
0.0
0.0
0.0
0.0
0.4
0.2
7.4
11.5
17.9
22.1
29.0
23.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
23.3
83.8
96.6
0.0
0.0
-0.2
-1.9
-2.8
0.0
0.0
8.0
91.9
55.1
0
0
248
14,375
97,468
0.0
0.0
0.4
3.7
4.7
-0.1
-0.1
-0.1
0.6
0.4
15.4
11.0
14.6
19.5
9.5
0.0
0.0
0.1
1.3
1.8
25.6
26.8
27.9
35.4
39.5
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, 2013
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)
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
Number
(thousands)
Percent of
Total
17,074
16,108
14,458
11,774
9,729
70,516
24.2
22.8
20.5
16.7
13.8
100.0
8,651
20,480
35,181
57,507
157,782
45,222
638
2,354
6,293
12,723
45,178
10,352
8,013
18,125
28,888
44,784
112,605
34,870
7.4
11.5
17.9
22.1
28.6
22.9
4.6
10.3
16.0
21.2
48.1
100.0
5.6
11.9
17.0
21.4
44.6
100.0
1.5
5.2
12.5
20.5
60.2
100.0
5,106
2,451
1,813
359
32
7.2
3.5
2.6
0.5
0.0
86,768
123,206
212,186
1,129,741
5,553,373
22,210
33,040
58,843
385,917
2,095,512
64,558
90,166
153,343
743,823
3,457,861
25.6
26.8
27.7
34.2
37.7
13.9
9.5
12.1
12.7
5.5
13.4
9.0
11.3
10.9
4.5
15.5
11.1
14.6
19.0
9.1
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).
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $13,465, 40% $25,159, 60% $42,626, 80% $69,583, 90% $100,255, 95% $141,875, 99% $375,887,
99.9% $1,773,679.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
17.5
5.4
0.0
0.0
0.0
0.0
-0.7
-0.5
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,491
456
0.0
0.0
0.0
0.0
1.8
1.4
0.0
0.0
-0.1
-0.2
0.3
0.0
0.2
1.6
5.5
15.0
77.6
100.0
0.0
0.0
0.0
0.0
0.5
0.4
3.2
10.8
15.9
20.3
28.3
24.9
0.0
0.0
0.0
0.0
0.0
0.1
4.4
55.5
87.3
96.0
0.0
0.0
-0.4
-1.9
-2.6
0.0
0.2
13.3
86.4
52.3
0
13
955
23,698
141,174
0.0
0.0
1.0
4.0
5.0
-0.2
-0.2
-0.1
0.8
0.5
15.3
12.3
19.0
31.0
15.4
0.0
0.0
0.3
1.3
1.7
24.1
25.6
27.8
32.9
35.9
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, 2013
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)
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
Number
(thousands)
Percent of
Total
6,646
8,846
11,466
15,133
18,824
61,567
10.8
14.4
18.6
24.6
30.6
100.0
14,997
34,316
61,056
98,062
294,107
131,596
483
3,703
9,682
19,924
81,715
32,310
14,514
30,613
51,375
78,138
212,391
99,285
3.2
10.8
15.9
20.3
27.8
24.6
1.2
3.8
8.6
18.3
68.3
100.0
1.6
4.4
9.6
19.3
65.4
100.0
0.2
1.7
5.6
15.2
77.3
100.0
8,992
4,893
3,916
1,023
104
14.6
8.0
6.4
1.7
0.2
142,741
198,470
351,916
1,860,212
8,301,978
34,347
50,736
96,974
587,667
2,837,441
108,393
147,734
254,942
1,272,545
5,464,537
24.1
25.6
27.6
31.6
34.2
15.8
12.0
17.0
23.5
10.7
15.9
11.8
16.3
21.3
9.3
15.5
12.5
19.1
30.2
14.8
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. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $13,465, 40% $25,159, 60% $42,626, 80% $69,583, 90% $100,255, 95% $141,875, 99% $375,887,
99.9% $1,773,679.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
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
Share of Federal Taxes
Change (%
Points)
Percent
Under the
Proposal
Average Federal Tax Rate 6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
12.6
0.6
0.0
0.0
0.0
0.0
-0.5
-0.1
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
611
31
0.0
0.0
0.0
0.0
1.2
0.4
0.0
-0.1
-0.1
-0.1
0.3
0.0
-3.4
12.8
27.0
27.9
35.7
100.0
0.0
0.0
0.0
0.0
0.3
0.1
-5.4
9.5
17.8
22.0
26.9
16.5
0.0
0.0
0.0
0.0
0.0
0.1
5.9
63.0
92.5
98.9
0.0
0.0
-0.4
-1.8
-2.4
0.1
0.5
18.3
81.1
43.1
1
17
781
18,562
119,281
0.0
0.0
1.1
3.9
4.6
-0.1
0.0
0.1
0.3
0.2
13.4
5.3
7.5
9.5
4.3
0.0
0.0
0.3
1.3
1.6
24.8
25.7
25.6
33.3
36.4
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 Adjusted for Family Size, 2013
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)
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
Number
(thousands)
Percent of
Total
8,048
7,608
5,217
2,852
1,277
25,098
32.1
30.3
20.8
11.4
5.1
100.0
13,855
31,521
51,706
79,541
185,233
43,145
-749
2,995
9,221
17,458
49,293
7,081
14,603
28,526
42,486
62,083
135,939
36,064
-5.4
9.5
17.8
22.0
26.6
16.4
10.3
22.2
24.9
21.0
21.9
100.0
13.0
24.0
24.5
19.6
19.2
100.0
-3.4
12.8
27.1
28.0
35.4
100.0
829
231
183
34
3
3.3
0.9
0.7
0.1
0.0
116,286
160,414
286,559
1,486,374
7,504,908
28,884
41,125
72,485
476,410
2,610,763
87,402
119,288
214,074
1,009,965
4,894,145
24.8
25.6
25.3
32.1
34.8
8.9
3.4
4.8
4.7
2.0
8.0
3.0
4.3
3.8
1.5
13.5
5.4
7.5
9.2
4.1
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).
(1) Calendar year. Baseline is current law. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $13,465, 40% $25,159, 60% $42,626, 80% $69,583, 90% $100,255, 95% $141,875, 99% $375,887,
99.9% $1,773,679.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Tax Units with Children
Percent of Tax Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
23.6
4.0
0.0
0.0
0.0
0.0
-0.7
-0.4
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,582
268
0.0
0.0
0.0
0.0
1.7
1.1
0.0
0.0
-0.1
-0.2
0.4
0.0
-0.8
3.2
10.3
20.1
67.1
100.0
0.0
0.0
0.0
0.0
0.5
0.3
-6.2
10.3
18.4
22.6
29.6
24.1
0.0
0.0
0.0
0.0
0.0
0.3
12.1
84.7
95.9
99.3
0.0
0.0
-0.5
-1.9
-2.6
0.0
0.6
18.8
80.6
47.9
1
37
1,555
27,838
176,127
0.0
0.1
1.3
3.8
4.8
-0.2
-0.1
0.0
0.6
0.4
15.4
10.4
16.5
24.8
11.8
0.0
0.0
0.4
1.3
1.7
25.5
26.8
29.2
34.8
37.0
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, 2013 1
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
10,210
10,390
10,271
9,840
8,341
49,348
20.7
21.1
20.8
19.9
16.9
100.0
15,173
35,594
63,886
106,312
320,674
99,072
-932
3,660
11,783
24,013
93,183
23,595
16,106
31,934
52,104
82,299
227,492
75,477
4,394
1,968
1,596
382
36
8.9
4.0
3.2
0.8
0.1
162,434
232,110
417,786
2,190,996
10,411,968
41,378
62,186
120,265
735,470
3,673,877
121,055
169,924
297,521
1,455,526
6,738,090
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-6.2
10.3
18.4
22.6
29.1
23.8
3.2
7.6
13.4
21.4
54.7
100.0
4.4
8.9
14.4
21.7
50.9
100.0
-0.8
3.3
10.4
20.3
66.8
100.0
25.5
26.8
28.8
33.6
35.3
14.6
9.3
13.6
17.1
7.7
14.3
9.0
12.8
14.9
6.5
15.6
10.5
16.5
24.1
11.3
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. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $13,465, 40% $25,159, 60% $42,626, 80% $69,583, 90% $100,255, 95% $141,875, 99% $375,887,
99.9% $1,773,679.
(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.
19-Mar-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0103
Medicare Tax as Proposed in H.R. 3590 (Senate Health Bill) and H.R. 4872 (Reconciliation Act of 2010)
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Elderly Tax Units
Percent of Tax Units4
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 Rate6
Change (%
Points)
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
13.2
2.4
0.0
0.0
0.0
0.0
-0.9
-0.5
0.0
0.0
0.0
0.0
100.0
100.0
0
0
0
0
1,848
328
0.0
0.0
0.0
0.0
2.6
2.2
0.0
0.0
-0.1
-0.2
0.4
0.0
0.3
1.8
3.7
10.5
83.7
100.0
0.0
0.0
0.0
0.0
0.7
0.4
2.6
4.3
6.9
12.6
27.4
20.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3
29.1
82.6
97.1
0.0
0.0
-0.3
-2.2
-3.0
0.0
0.0
7.3
92.6
56.1
0
1
560
23,234
132,530
0.0
0.0
0.8
4.6
5.4
-0.2
-0.2
-0.3
1.0
0.7
10.2
9.5
19.8
44.2
22.9
0.0
0.0
0.2
1.5
1.9
18.7
21.3
25.9
34.0
37.2
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, 2013 1
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
5,122
8,579
6,256
5,579
5,563
31,333
16.4
27.4
20.0
17.8
17.8
100.0
11,258
22,972
41,671
73,112
268,318
77,032
289
994
2,865
9,205
71,605
15,256
10,969
21,978
38,805
63,907
196,713
61,775
2,423
1,382
1,348
410
44
7.7
4.4
4.3
1.3
0.1
109,937
158,053
276,519
1,548,895
6,915,532
20,581
33,658
71,138
502,549
2,439,382
89,356
124,395
205,381
1,046,345
4,476,149
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.6
4.3
6.9
12.6
26.7
19.8
2.4
8.2
10.8
16.9
61.8
100.0
2.9
9.7
12.5
18.4
56.5
100.0
0.3
1.8
3.8
10.7
83.3
100.0
18.7
21.3
25.7
32.5
35.3
11.0
9.1
15.5
26.3
12.5
11.2
8.9
14.3
22.2
10.1
10.4
9.7
20.1
43.1
22.2
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. Proposal would impose an additional 0.9% tax on earnings for single filers in excess of $200,000 ($250,000 for married couples filing a joint return) as defined for
purposes of the Hospital Insurance Tax. An additional tax of 3.8% would be imposed on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net
positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. The unearned income surtax would not exceed 3.8% of a single filer's
adjusted gross income in excess of $200,000 ($250,000 for married couples filing a joint return). The thresholds would not be indexed for inflation.
(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% $13,465, 40% $25,159, 60% $42,626, 80% $69,583, 90% $100,255, 95% $141,875, 99% $375,887,
99.9% $1,773,679.
(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.