17-Dec-12
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 T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 2013 1
Summary Table
Tax Units with Tax Increase or Cut 4
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
With Tax Cut
Pct of Tax
Avg Tax Cut
Units
With Tax Increase
Pct of Tax
Avg Tax
Units
Increase
Percent
Change in
After-Tax
Income5
Share of
Total
Federal Tax
Change
Average
Federal Tax
Change ($)
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
0.2
1.1
2.9
11.0
2.3
0
254
871
1,873
19,534
13,937
0.0
0.0
0.0
-0.1
-1.2
-0.6
0.0
0.0
0.6
2.7
96.7
100.0
0
0
9
54
2,154
326
0.0
0.0
0.0
0.1
0.9
0.5
1.9
9.4
15.5
19.0
27.7
21.4
0.0
0.0
0.0
0.0
0.0
0
0
0
0
0
4.9
8.8
17.3
59.3
91.2
2,723
3,709
6,851
60,344
246,161
-0.1
-0.3
-0.6
-3.2
-4.3
3.0
3.6
10.6
79.4
50.6
133
327
1,187
35,783
224,394
0.1
0.2
0.4
2.1
2.8
21.5
23.4
26.5
35.5
37.8
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 3.3
* Less than 0.05
** Insufficient data
(1) Calendar year. Baseline is current policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household
tax units. The limit is effective 01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $20,113; 40% $39,790; 60% $64,484; 80% $108,266; 90% $143,373; 95% $204,296; 99% $506,210; 99.9% $2,655,675.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile, 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
0.2
1.1
2.9
11.0
2.3
0.0
0.0
0.0
-0.1
-1.2
-0.6
0.0
0.0
0.6
2.7
96.7
100.0
0
0
9
54
2,154
326
0.0
0.0
0.1
0.3
3.3
2.2
0.0
-0.1
-0.2
-0.3
0.7
0.0
0.4
4.3
10.8
17.7
66.7
100.0
0.0
0.0
0.0
0.1
0.9
0.5
1.9
9.4
15.5
19.0
27.7
21.4
0.0
0.0
0.0
0.0
0.0
4.9
8.8
17.3
59.3
91.2
-0.1
-0.3
-0.6
-3.2
-4.3
3.0
3.6
10.6
79.4
50.6
133
327
1,187
35,783
224,394
0.5
0.8
1.6
6.4
8.0
-0.2
-0.1
-0.1
1.1
0.8
13.4
9.5
14.9
28.8
14.9
0.1
0.2
0.4
2.1
2.8
21.5
23.4
26.5
35.5
37.8
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, 2013 1
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
25.6
22.9
19.8
16.5
14.7
100.0
11,290
30,031
52,294
84,355
244,576
69,527
4.2
9.9
14.9
20.0
51.5
100.0
209
2,826
8,097
15,963
65,639
14,576
0.4
4.4
11.0
18.0
66.0
100.0
11,080
27,205
44,197
68,392
178,937
54,950
5.2
11.3
15.9
20.5
47.7
100.0
1.9
9.4
15.5
18.9
26.8
21.0
7.4
3.6
2.9
0.7
0.1
125,820
166,808
287,453
1,671,536
7,985,826
13.4
8.7
12.1
17.4
8.5
26,955
38,769
74,896
557,097
2,790,215
13.7
9.6
15.0
27.7
14.1
98,865
128,039
212,557
1,114,439
5,195,610
13.3
8.5
11.3
14.7
7.0
21.4
23.2
26.1
33.3
34.9
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
40,520
36,208
31,370
26,062
23,189
###########
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
11,692
5,736
4,615
1,147
117
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 3.3
* Less than 0.05
(1) Calendar year. Baseline is current policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20%
$20,113; 40% $39,790; 60% $64,484; 80% $108,266; 90% $143,373; 95% $204,296; 99% $506,210; 99.9% $2,655,675.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table
Percent of Tax Units
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
1.6
10.3
2.3
0.0
0.0
0.0
0.0
-1.1
-0.6
0.0
0.0
0.2
0.9
99.0
100.0
0
0
3
15
1,691
326
0.0
0.0
0.0
0.1
3.1
2.2
0.0
-0.1
-0.2
-0.4
0.6
0.0
-0.4
2.7
8.6
17.2
71.8
100.0
0.0
0.0
0.0
0.0
0.8
0.5
-2.6
7.4
13.9
18.4
27.4
21.4
0.0
0.0
0.0
0.0
0.0
3.8
8.0
18.7
56.5
89.7
-0.1
-0.2
-0.6
-3.2
-4.3
1.9
3.8
11.5
81.8
52.7
65
247
993
30,758
195,468
0.3
0.7
1.6
6.4
8.0
-0.3
-0.2
-0.1
1.2
0.8
14.5
11.2
16.2
29.8
15.6
0.1
0.2
0.4
2.1
2.8
21.4
23.4
26.2
35.3
37.7
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 Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Number
(thousands)
Pre-Tax Income
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Average (dollars)
Percent of
Total
After-Tax Income 5
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
33,405
32,563
31,164
29,985
30,233
158,260
21.1
20.6
19.7
19.0
19.1
100.0
10,552
26,837
46,562
73,219
204,490
69,527
3.2
7.9
13.2
20.0
56.2
100.0
-273
1,988
6,476
13,483
54,286
14,576
-0.4
2.8
8.8
17.5
71.2
100.0
10,825
24,849
40,086
59,735
150,205
54,950
4.2
9.3
14.4
20.6
52.2
100.0
-2.6
7.4
13.9
18.4
26.6
21.0
14,991
7,896
5,972
1,374
139
9.5
5.0
3.8
0.9
0.1
106,847
142,978
244,529
1,448,832
6,989,966
14.6
10.3
13.3
18.1
8.9
22,806
33,216
62,970
480,919
2,442,038
14.8
11.4
16.3
28.7
14.7
84,041
109,763
181,559
967,913
4,547,928
14.5
10.0
12.5
15.3
7.3
21.3
23.2
25.8
33.2
34.9
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
Number of AMT Taxpayers (millions). Baseline: 4.0
Proposal: 3.3
* Less than 0.05
(1) Calendar year. Baseline is current policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $13,941; 40% $26,136; 60% $41,226; 80% $64,003; 90% $88,398; 95%
$122,605; 99% $295,996; 99.9% $1,565,087.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Single 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
Share of Federal Taxes
Change (%
Points)
Percent
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
0.7
2.2
15.4
2.5
0.0
0.0
0.0
-0.1
-1.3
-0.5
0.0
0.0
0.3
1.9
97.8
100.0
0
0
3
19
1,281
170
0.0
0.0
0.1
0.2
3.6
2.1
0.0
-0.1
-0.3
-0.4
0.8
0.0
1.5
5.7
12.0
21.3
59.4
100.0
0.0
0.0
0.0
0.0
1.0
0.4
5.3
9.5
15.0
20.1
28.0
20.7
0.0
0.0
0.0
0.0
0.0
6.4
14.7
31.4
60.2
89.1
-0.2
-0.6
-1.2
-3.7
-4.7
4.3
8.5
23.0
62.0
37.0
110
431
1,524
22,364
147,374
0.6
1.7
3.5
7.0
8.0
-0.2
-0.1
0.2
0.9
0.6
14.2
10.8
14.5
20.0
10.5
0.2
0.4
0.9
2.4
3.0
23.1
24.9
27.0
36.9
40.1
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, 2013 1
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
27.4
23.9
18.8
16.3
13.0
100.0
8,091
20,316
34,462
52,696
132,560
39,146
5.7
12.4
16.6
21.9
44.0
100.0
427
1,933
5,150
10,574
35,770
7,927
1.5
5.8
12.2
21.7
58.6
100.0
7,664
18,383
29,312
42,122
96,790
31,219
6.7
14.1
17.7
22.0
40.3
100.0
5.3
9.5
14.9
20.1
27.0
20.3
4,749
2,416
1,849
340
31
6.6
3.4
2.6
0.5
0.0
75,578
104,552
168,798
931,104
4,955,926
12.7
9.0
11.1
11.2
5.4
17,338
25,571
44,087
320,722
1,837,291
14.4
10.8
14.3
19.1
9.9
58,240
78,980
124,712
610,382
3,118,635
12.3
8.5
10.3
9.2
4.3
22.9
24.5
26.1
34.5
37.1
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
19,721
17,211
13,567
11,717
9,354
72,035
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
* Less than 0.05
(1) Calendar year. Baseline is current policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $13,941; 40% $26,136; 60% $41,226; 80% $64,003; 90% $88,398; 95%
$122,605; 99% $295,996; 99.9% $1,565,087.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
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 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
Share of Federal Taxes
Change (%
Points)
Percent
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
0.1
0.7
7.5
2.6
0.0
0.0
0.0
0.0
-1.1
-0.7
0.0
0.0
0.0
0.4
99.6
100.0
0
0
1
9
1,885
599
0.0
0.0
0.0
0.1
3.0
2.3
0.0
0.0
-0.1
-0.3
0.5
0.0
-0.2
1.2
5.8
14.8
78.2
100.0
0.0
0.0
0.0
0.0
0.8
0.5
-3.7
6.6
12.7
17.5
27.2
22.8
0.0
0.0
0.0
0.0
0.0
2.0
4.5
12.8
55.2
90.1
0.0
-0.1
-0.4
-3.1
-4.2
0.8
2.0
8.0
88.8
57.5
32
140
751
33,065
207,666
0.1
0.4
1.0
6.2
7.9
-0.3
-0.2
-0.2
1.3
0.9
14.8
11.7
17.5
34.3
17.6
0.0
0.1
0.3
2.1
2.8
20.7
22.8
25.8
35.0
37.4
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 1
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
8.9
13.3
20.5
25.1
31.6
100.0
14,486
36,595
58,915
89,679
241,961
116,746
1.1
4.2
10.4
19.3
65.5
100.0
-536
2,406
7,452
15,660
63,826
25,963
-0.2
1.2
5.9
15.2
77.7
100.0
15,022
34,190
51,463
74,019
178,135
90,783
1.5
5.0
11.6
20.5
62.1
100.0
-3.7
6.6
12.7
17.5
26.4
22.2
9,257
5,109
3,865
977
101
15.2
8.4
6.4
1.6
0.2
123,947
162,264
282,834
1,615,663
7,547,627
16.2
11.7
15.4
22.3
10.7
25,678
36,894
72,226
533,034
2,614,225
15.1
12.0
17.7
33.0
16.7
98,269
125,370
210,608
1,082,629
4,933,401
16.5
11.6
14.8
19.2
9.0
20.7
22.7
25.5
33.0
34.6
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
5,376
8,093
12,453
15,271
19,208
60,744
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
* Less than 0.05
(1) Calendar year. Baseline is current policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $13,941; 40% $26,136; 60% $41,226; 80% $64,003; 90% $88,398; 95%
$122,605; 99% $295,996; 99.9% $1,565,087.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
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 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
Share of Federal Taxes
Change (%
Points)
Percent
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
0.2
2.4
11.2
0.9
0.0
0.0
0.0
0.0
-0.8
-0.2
0.0
0.0
0.6
3.9
95.5
100.0
0
0
2
20
997
55
0.0
0.0
0.0
0.1
2.5
1.1
0.2
-0.1
-0.3
-0.3
0.6
0.0
-13.0
9.0
29.5
30.1
44.3
100.0
0.0
0.0
0.0
0.0
0.6
0.1
-13.3
4.8
15.3
19.4
26.1
12.5
0.0
0.0
0.0
0.0
0.0
7.5
11.1
19.2
52.2
84.1
-0.2
-0.5
-0.5
-2.8
-3.6
8.2
10.1
11.5
65.7
38.8
142
473
831
26,029
163,249
0.6
1.5
1.4
6.1
7.3
-0.1
0.0
0.0
0.6
0.4
14.9
7.7
9.1
12.6
6.3
0.1
0.4
0.4
1.9
2.4
22.5
24.4
26.4
33.6
35.5
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 Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
Federal Tax Burden
8,034
6,829
4,455
2,489
1,222
23,101
34.8
29.6
19.3
10.8
5.3
100.0
13,983
31,795
49,950
71,792
160,037
40,006
12.2
23.5
24.1
19.3
21.2
100.0
-1,863
1,515
7,629
13,908
40,784
4,932
-13.1
9.1
29.8
30.4
43.7
100.0
15,846
30,280
42,320
57,884
119,253
35,073
15.7
25.5
23.3
17.8
18.0
100.0
-13.3
4.8
15.3
19.4
25.5
12.3
740
273
176
32
3
3.2
1.2
0.8
0.1
0.0
102,711
133,416
226,780
1,339,304
6,750,433
8.2
4.0
4.3
4.7
2.2
22,995
32,126
58,985
423,805
2,232,754
14.9
7.7
9.1
12.0
6.0
79,715
101,290
167,794
915,499
4,517,679
7.3
3.4
3.6
3.6
1.7
22.4
24.1
26.0
31.6
33.1
Average (dollars)
Percent of
Total
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
Percent of
Total
Average (dollars)
Percent of
Total
After-Tax Income 5
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
* Less than 0.05
(1) Calendar year. Baseline is current policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $13,941; 40% $26,136; 60% $41,226; 80% $64,003; 90% $88,398; 95%
$122,605; 99% $295,996; 99.9% $1,565,087.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Tax Units with Children
Percent of Tax Units
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
1.7
10.9
2.2
0.0
0.0
0.0
0.0
-1.1
-0.5
0.0
0.0
0.3
1.0
98.8
100.0
0
0
5
20
2,246
380
0.0
0.0
0.1
0.1
3.0
2.1
0.1
0.0
-0.2
-0.4
0.6
0.0
-2.6
2.1
10.5
19.9
69.9
100.0
0.0
0.0
0.0
0.0
0.8
0.4
-14.9
5.0
15.3
19.2
28.1
20.9
0.0
0.0
0.0
0.0
0.0
4.2
11.5
14.6
63.9
91.8
-0.1
-0.3
-0.4
-3.1
-4.1
1.8
3.6
7.3
86.1
50.7
75
400
840
37,313
239,751
0.2
0.9
1.0
6.3
7.9
-0.3
-0.1
-0.2
1.2
0.8
15.4
8.8
15.8
29.9
14.3
0.1
0.2
0.3
2.1
2.7
22.3
24.3
27.1
35.0
37.1
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, 2013 1
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
21.8
21.4
20.3
19.4
16.7
100.0
14,497
36,326
62,074
97,977
273,829
87,888
3.6
8.8
14.3
21.6
52.1
100.0
-2,156
1,819
9,507
18,817
74,583
17,985
-2.6
2.2
10.7
20.3
69.3
100.0
16,653
34,507
52,567
79,160
199,246
69,903
5.2
10.6
15.2
22.0
47.6
100.0
-14.9
5.0
15.3
19.2
27.2
20.5
4,581
1,696
1,662
439
40
9.1
3.4
3.3
0.9
0.1
139,259
196,218
322,508
1,792,201
8,825,262
14.5
7.6
12.2
17.9
8.1
30,972
47,199
86,561
589,633
3,034,893
15.7
8.9
16.0
28.7
13.6
108,287
149,019
235,947
1,202,567
5,790,369
14.2
7.2
11.2
15.1
6.7
22.2
24.1
26.8
32.9
34.4
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
10,949
10,714
10,166
9,735
8,378
50,150
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
* 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 policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $13,941; 40% $26,136; 60% $41,226; 80% $64,003; 90% $88,398; 95%
$122,605; 99% $295,996; 99.9% $1,565,087.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.
17-Dec-12
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T12-0343
Limit Itemized Deductions to $50,000
Baseline: Current Policy
Distribution of Federal Tax Change by Cash Income Percentile Adjusted for Family Size, 2013 1
Detail Table - Elderly Tax Units
Percent of Tax Units
Cash Income Percentile2,3
With Tax Cut
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
4
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
Change (%
Points)
6
Under the
Proposal
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
*
1.6
9.3
2.1
0.0
0.0
0.0
0.0
-1.3
-0.7
0.0
0.0
0.0
0.9
99.1
100.0
0
0
0
17
1,912
365
0.0
0.0
0.0
0.3
4.0
3.4
0.0
0.0
-0.1
-0.3
0.5
0.0
0.1
0.8
4.0
10.8
84.3
100.0
0.0
0.0
0.0
0.0
1.0
0.6
0.8
1.6
4.6
10.0
25.0
16.8
0.0
0.0
0.0
0.0
0.0
2.9
6.4
16.4
49.6
89.5
-0.1
-0.2
-0.7
-3.5
-5.1
1.2
3.1
13.8
81.0
55.7
51
223
1,209
29,343
201,943
0.4
0.9
2.4
6.8
8.9
-0.4
-0.3
-0.2
1.3
1.1
11.5
11.2
19.6
42.1
22.5
0.1
0.2
0.5
2.3
3.2
14.9
18.4
23.2
36.4
39.6
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, 2013 1
Tax Units
Cash Income Percentile2,3
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Top Quintile
All
Pre-Tax Income
14.7
25.3
23.1
17.9
18.9
100.0
10,284
22,201
41,688
66,058
197,406
65,837
2.3
8.6
14.6
18.0
56.7
100.0
80
345
1,896
6,611
47,350
10,692
0.1
0.8
4.1
11.1
83.8
100.0
10,205
21,856
39,793
59,448
150,056
55,145
2.7
10.0
16.6
19.3
51.5
100.0
0.8
1.6
4.6
10.0
24.0
16.2
3,052
1,778
1,463
354
35
8.7
5.1
4.2
1.0
0.1
98,141
133,313
223,287
1,267,910
6,252,940
13.0
10.3
14.1
19.4
9.6
14,531
24,308
50,683
432,158
2,271,191
11.8
11.5
19.7
40.7
21.4
83,610
109,005
172,603
835,753
3,981,749
13.2
10.0
13.0
15.3
7.3
14.8
18.2
22.7
34.1
36.3
Average (dollars)
Percent of
Total
Average
Federal Tax
Rate 6
5,152
8,903
8,102
6,300
6,648
35,135
Average (dollars)
Percent of
Total
After-Tax Income 5
Percent of
Total
Average (dollars)
Percent of
Total
Federal Tax Burden
Number
(thousands)
Addendum
80-90
90-95
95-99
Top 1 Percent
Top 0.1 Percent
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0412-8).
* 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 policy. Proposal limits itemized deductions to $25,000 for single tax units, $50,000 for joint tax units, and $37,500 for head of household tax units. The limit is effective
01/01/13, and the dollar values are indexed for inflation after 2013. For a description of TPC's current law and current policy baselines, see
http://www.taxpolicycenter.org/T11-0270
(2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. 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 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 2012 dollars): 20% $13,941; 40% $26,136; 60% $41,226; 80% $64,003; 90% $88,398; 95%
$122,605; 99% $295,996; 99.9% $1,565,087.
(4) Includes tax units with a change in federal tax burden of $10 or more in absolute value.
(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.