#D-97-25 QY

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 1997
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
QUINTILE (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
-$12 -0.2% -$7 1.2% $7 1.2% -5.1% 5.1%
+180 718.9% 1 0.1% 1 0.1% 0.2% 0.2%
1,419 -3.5% 40 6.3% 39 6.1% 5.0% 48%
2,908 -2.9% 101 15.8% 98 15.3% 7.8% 7.5%
5,501 1.1% 503 78.9% 508 79.6% 16.2% 15.9%
Total, All Taxpayers $982 0.2% $637 100.0% $638 100.0% 11.0% 10.8%
Highest 10%... $6,948 1.7% $403 63.3% $410 64.3% 18.9% 18.4%
Highest 5%.. 7,172 2.2% 321 50.3% 328 51.4% 21.5% 22.0%
Highest 1%.. 5,915 3.0% 195 30.6% 201 31.5% 26.8% 27.7%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
OC individual income tax incentives.
(2) The income concept used to place tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, {3] employer share of FICA tax, [4] worker's compensation,

{5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad.

(3) includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 1 of 6



#D-97-25 Q

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN’S MARK (1)
Calendar Year 1997
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
QUINTILE (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
LOWESt..oeccccscensene $4 6) $9 0.7% $9 0.7% 5.9% 5.9%
Second. -147 0.3% 48 4.0% 48 4.0% 10.5% 10.4%
-1,367 1.1% 129 10.7% 127 10.6% 16.0% 15.8%
-2,823 1.2% 242 20.1% 239 19.9% 18.7% 18.4%
5,777 0.7% 775 64.4% 780 64.8% 25.0% 24.4%
$1,445 0.1% $1,202 100.0% $1,204 100.0% 20.7% 20.4%
$7,147 1.3% $564 46.9% $571 47.5% 26.4% 25.7%
7,311 1.8% 414 34.2% 418 34.7% 27.5% 28.0%
Highest 1%... 5,957 2.7% 219 18.2% 224 18.6% 30.1% 30.9%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

{8] excluded income of U.S. citizens living abroad.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

(5) Less than 0.05%.

Page 1 of 6


#D-97-25 QY
a . .

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 2001
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
QUINTILE (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Lowest. -$234 -2.6% -$9 1.2% -$9 1.2% 4.9% 5.1%
-1,958 -52.7% 4 0.5% 2 0.2% 0.7% 0.3%
-5,849 14.4%. 51 6.6% 45 6.1% 5.2% 46%
-9,381 “7.7% 122 15.8% 113 15.2% 7.9% 7.2%
-13,390 2.2% 605 78.3% 591 79.7% 16.4% 15.8%
$30,812 4.0% $772 100.0% $742 100.0% 11.1% 10.6%
-$7,526 1.6% $484 62.6% $476 64.2% 19.1% 18.5%
Highest 5%.. -4,584 1.2% 384 49.7% 379 51.2% 21.7% 21.5% e
Highest 1%. -2,957 1.3% 232 30.0% 229 30.8% 27.1% 26.8%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(t) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
OC individual income tax incentives.

(2) The income concept used to place tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 5 of 6


#D-97-25

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 2000
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,001 $17 0.3% $5 0.4% $5 0.4% 5.8% 5.8%
10,000 to 20,001 -1,186 -3.7% 32 2.3% 31 2.3% 8.3% 8.0%
20,000 to 30,000.. 2,240 3.0% 75 5.4% 72 5.4% 13.6% 13.1%
30,000 to 40,000. ~4,024 3.8% 105 7.7% 101 7.5% 16.4% 15.8%
40,000 to 50,000.. 3,745 3.4% 110 8.1% 107 7.9% 17.5% 16.9%
50,000 to 75,000.. 7,411 -2.8% 267 19.4% 259 19.3% 19.7% “19.1%
75,000 to 100,000. -3,817 1.8% 218 15.9% 214 15.9% 22.8% 22.4%
100,000 to 200,000. 1,305 -0.5% 280 20.4% 278 20.7% 25.0% 24.7%
200,000 and over. 2,142 -0.8% 279 20.4% 277 20.6% 30.2% 28.7%
Total, All Taxpayer: $25,852 1.9% $1,371 100.0% $1,345 100.0% 20.6% 20.1%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Federal taxes are equal to individual income tax {including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 4 of 6


#D-97-25 QY

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 1998
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
QUINTILE (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent
Lowest... -$193 -2.6% -$8 1.1% -$8 1.2% 4.9% 51%
Second. -1,609 115.6% 1 0.2% (6) 0.9% 0.3% 1.2%
Third. -5,017 -11.9% 42 6.3% 37 5.8% 5.0% 44%
Fourt -9,149 8.7% 106 15.8% 96 15.0% 7.8% 7.1%
Highest... -8,828 -1,7% 525 78.7% 516 80.4% 16.3% 15.6%
Total, All Taxpayers. $24,796 3.7% $667 100.0% $642 99.1% 11.0% 10.5%
Highest 10% -$3,035 0.7% $421 63.1% $418 65.1% 18.9% 18.3%
Highest 5%.. -345 0.1% 334 50.2% 334 52.0% 21.5% 21.5%
Highest 1%.. 523 0.3% 203 30.5% 204 31.8% 26.9% 27.0%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit,

OC individual income tax incentives.
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: {1] tax-exempt

interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

[8] excluded income of U.S. citizens living abroad.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

(6) Less than $500 million.

Page 2 of 6

DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and



#D-97-25 QY

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 2000
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
QUINTILE (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
-$217 -2.6% -$8 “1.2% -$9 1.2% 4.9% 5.1%
1,828 -63.5% 3 0.4% 1 0.1% 0.5% 0.2%
-5,509 11.5% 48 6.5% 42 6.0% 5.1% 4.5%
-9,290 -8.0% 116 15.8% 107 15.2% 7.8% 7.2%
12,928 2.2% 576 78.4% 563 79.9% 16.3% 15.7%
-$29,772 41% $734 100.0% $704 100.0% 11.0% 10.5%
-$7,098 1.5% $461 62.8% $454 64.5% 19.0% 18.4%
-4,196 “1.1% 366 49.9% 362 51.5% 21.7% 21.4%
Highest 1%........... __-2,688 1.2% 222 30.2% 219 31.1% 27.0% 26.7%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.
(2) The income concept used to place tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, {3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, (6] insurance value of Medicare benefits, {7] alternative minimum tax preference items, and

[8] excluded income of U.S. citizens living abroad.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote

income attributable to the proposal.

Page 4 of 6

(2) plus additional


#D-97-25 Q

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 2001
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
QUINTILE (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
-$107 1.0% $14 0.8% $1 0.8% 6.0% 6.0%
1,699 -2.7% 62 4.3% 60 4.3% 10.9% 10.6%
-5,429 3.5% 157 10.9% 151 10.7% 16.0% 15.4%
-8,686 -3.0% 286 19.9% 277 19.6% 18.4% 17.8%
-10,522 1.1% 922 64.2% 911 64.6% 25.0% 24.4%
Total, All Taxpayers... _-$26,443 “1.8% $1,437 100.0% $1,411 100.0% 20.6% 20.1% ” 2
Highest 10%. -$5,304 -0.8% $672 46.7% $666 47.2% 26.6% 25.9% 8
-2,903 -0.6% 490 34.1% 487 34.5% 27.7% 27.6% :
2,238 0.9% 260 18.1% 257 18.3% 30.4% 30.1% 5

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.
(2) The income concept used to piace tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, (6) insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad.
(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

(5) Less than 0.05%.

Page 5 of 6


#D-97-25 Y

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 1999
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
CATEGORY (2) INCOME TAX (3) PRESENT LAW. PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000.. -$65 “1.2% -$5 -0.8% -$5 0.8% -5.9% 6.0%
10,000 to 20,000.. 1,314 -27.6% 5 0.7% 6 0.9% 1.3% -1.6%
20,000 to 30,000. -2,423 “14.1% 17 2.5% 15 2.2% 3.2% 2.8%
30,000 to 40,000. 4,231 -11.8% 36 5.1% 32 4.7% 5.8% 5.1%
40,000 to 50,000.. -4,008 9.1% 44 6.3% 40 6.0% 7.2% 6.5%
50,000 to 75,000.. -8,158 -7.0% 116 16.6% 108 16.1% 9.0% 8.3%
75,000 to 100,000. 4,352 4.2% 103 14.8% 99 14.8% 11.6% 11.1%
-2,252 -1.4% 162 23.3% 160 23.9% 15.4% 15.1%
200,000 and over. -2,535 71.1% 230 32.9% 227 33.9% 26.3% 24.9%
Total, All Taxpayers. -$29,337 ~4.2% $699 100.0% $669 100.0% 11.0% 10.5%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Includes the outlay portion of the EIC.
(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 3 of 6

oe



#D-97-25

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 2002
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL : UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

Less than $10,000. $17 0.3% $5 0.4% $5 0.4% 5.9% 5.9%

10,000 to 20,000.. 1,372 4.2% 33 2.2% 3t 2.1% 8.3% 7.9%
20,000 to 30,000. 2,421 -3.0% 80 5.3% 77 5.2% 13.5% 13.1%
30,000 to 40,000. -4,117 3.6% 114 7.5% 109 7.4% 16.4% 15.8%
40,000 to 50,000. -3,939 -3.3% 120 7.9% 116 7.8% 17.3% 16.7%
50,000 to 75,000. -7,431 -2.6% 284 18.9% 276 18.7% 19.3% 18.8%
75,000 to 100,000.. 4,151 1.7% 248 16.5% 244 16.5% 22.7% 22.2%
100,000 to 200,000. -1,403 0.4% 312 20.8% 314 21.1% 25.0% 24.7%
200,000 and over... -2,499 0.8% 310 20.6% 307 20.8% 30.3% 28.8%
Total, All Taxpayers. ~$27,315 21.8% $1,505 100.0% $1,477 100.0% 20.6% 20.1%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 6 of 6



#D-97-25

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 2001
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000... $17 0.3% $5 0.4% $5 0.4% 5.8% 5.8%
10,000 to 1,265 -3.9% 32 2.2% 31 2.2% 8.3% 7.9%
20,000 to -2,332 3.0% 77 5.4% 75 5.3% 13.5% 13.1%
30,000 to -4,072 3.7% 109 7.6% 105 7.5% 16.4% 15.8%
40,000 to -3,842 3.4% 114 8.0% WW 7.8% 17.4% 16.8% es
50,000 to -7,355 -2.7% 274 19.1% 267 18.9% 19.6% 19.0% i
75,000 to 100,000... -4,007 1.7% 235 16.4% 231 16.4% 22.8% 22.3%
100,000 to 200,000. -1,294 0.4% 295 20.5% 294 20.8% 25.0% 24.7%
200,000 and over. -2,293 -0.8% 294 20.5% 292 20.7% 30.3% 28.8%
Total, All Taxpayers....| -$26,443 1.8% $1,437 100.0% $1,411 100.0% 20.6% 20.1%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.

{2) The income concept used to place tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2} employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, (6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal. :

Page 5 of 6


#D-97-25 Q

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 2002
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL . UNDER UNDER Present
QUINTILE (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
-$125 1.1% $11 0.8% $11 0.8% 6.0% 6.0%
-1,840 2.8% 67 44% 65 4.4% 11.1% 10.8%
-5,768 -3.5% 165 11.0% 159 10.8% 16.0% 15.5%
8,735 2.9% 298 19.8% 289 19.5% 18.3% 17.7%
10,846 “1.1% 964 64.1% 953 64.5% 25.1% 24.4%
Total, All Taxpayers. -$27,315 71.8% $1,505 100.0% $1,477 100.0% 20.6% 20.1%
Highest 10% -$5,611 -0.8% $702 46.7% $697 47.2% 26.6% 25.9%
Highest 5%. -3,184 -0.6% 512 34.0% 509 34.4% 27.8% 27.6%
Highest 1%. +2,400 -0.9% 271 18.0% 269 18.2% 30.5% 30.2%

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
{5} nontaxable social security benefits, (6) insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad,

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal. .

(5) Less than 0.05%.

Page 6 of 6


#D-97-25 Y

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Caiendar Year 1998
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL ” ‘TAX (3) UNDER TAX (3) UNDER Present
CATEGORY (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000.. -$62 “1.2% -$5 -0.8% -$5 -0.9% 5.9% 5.9%
10,000 to 20,000. -1,250 -29.9% 4 0.6% 5 0.8% 1.1% 1.5%
20,000 to 30,000. -2,346 13.9% 17 2.5% 15 2.3% 3.3% 2.8%
30,000 to 40,000. ~4,157 -12.0% 35 5.2% 31 4.8% 5.9% 5.2%
40,000 to 50,000. 3,931 9.3% 42 6.3% 38 6.0% 7.3% 6.6%
50,000 to 75,000. -7,983 -7.1% 113 16.9% 105 16.3% 9.0% 8.4%
75,000 to 100,000.. -4,048 -4.2% 98 14.6% 93 14.6% 11.7% 11.1%
100,000 to 200,000. 1,557 1.0% 154 23.1% 153 23.8% 15.5% 15.1%
200,000 and over. 539 0.2% 218 32.7% 219 34.1% 26.3% 24.8%
Total, All Taxpayers.. -$24,796 3.7% $667 100.0% $642 100.0% 11.0% 10.5%

Source: Joint Committee on Taxation -
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benetits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Includes the outlay portion of the EIC,
(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional

income attributable to the proposal.

Page 2 of 6


#D-97-25 QY

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 2002
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL, TAX (3) UNDER TAX (3) UNDER Present
QUINTILE (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Lowest. -$258 -2.7% -$9 1.2% -$10 1.2% “4.9% 5.1%
-2,115 -45.9% 5 0.6% 2 0.3% 0.8% 0.4%
-6,217 -11.4% 54 6.7% 48 6.2% 5.3% 4.7%
-9,478 74% 128 16.8% 118 15.2% 7.9% 7.3%
-13,810 2.2% 634 78.1% 620 79.6% 16.5% 15.9%
Total, All Taxpayers....|_-$31,878 3.9% $811 100.0% $779 100.0% 11.1% 10.6%
Highest 10% -$7,877 “1.6% $507 62.5% $499 64.0% 19.2% 18.5%
Highest 5%. -4,871 1.2% 402 49.6% 397 51.0% 21.8% 21.6%
Highest 1%.. -3,061 1.3% 242 29.9% 239 30.7% 27.2% 26.8%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
OC individual income tax incentives.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 6 of 6


DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS
CONTAINED IN THE SENATE FINANCE COMMITTEE t
CHAIRMAN’S MARK

Scheduled for Markup
Before the
SENATE FINANCE COMMITTEE

on June 19, 1997 | .

Prepared by the Staff |
of the

JOINT COMMITTEE ON TAXATION |

June 17, 1997

JCX-34-97



#D-97-25 Y

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 2001
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
CATEGORY (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

Less than $10,000........ -$69 1.3% -$5 -0.7% -$6 -0.7% 6.0% 6.1%

10,000 to 1,454 -25.9% 6 -0.7% 7 -1.0% 1.4% 1.8%

20,000 to -2,576 -14.4% 18 2.3% 15 2.1% 3.1% 2.7%

30,000 to -4,363 11.3% 39 5.0% 34 4.6% 5.8% 5.2%

40,000 to 4,128 8.8% 47 6.1% 43 5.8% 7.2% 6.5%

50,000 to -8,042 6.5% 124 16.0% 116 15.6% 8.8% 8.2%
75,000 to 100,000... -4,638 -3.9% 119 15.5% 115 15.5% 11.6% 11.1%
100,000 to 200,000. -2,356 1.3% 182 23.5% 179 24.2% 15.4% 15.1%
200,000 and over. -3,187 1.2% 255 33.0% 252 34.0% 26.3% 24.8%
Total, All Taxpayers....| -$30,812 4.0% $772 100.0% $742 100.0% 11.1% 10.6%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

{1) Includes family credit

DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
{5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
{8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Includes the outlay portion of the EIC.
(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 5 of 6



#D-97-25 Y

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 2000
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
CATEGORY (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000.. -$67 1.2% -$5 0.7% $5 -0.8% 6.0% 6.1%
10,000 to 20,000.. -1,372 -26.4% 5 -0.7% 7 -0.9% -1,.3% 1.7%
20,000 to 30,000. +2,472 -14.2% 17 2.4% 15 2.1% 3.2% 2.7%
30,000 to 40,000.. +4,299 “11.6% 37 5.1% 33 47% 5.8% 5.1%
40,000 to 50,000. 4,011 -B.8% 46 6.2% 41 5.9% 7.2% 6.6%
50,000 to 75,00 8,055 6.7% 120 16.3% 112 15.9% 8.9% - 8.3%
75,000 to 100,000.. -4,382 -4.0% 110 15.1% 106 15.1% 11.6% 11.4%
100,000 to 200,000. 2,252 1.3% 172 23.4% 170 24.1% 15.4% 15.1%
200,000 and over. -2,861 71.2% 242 33.0% 239 34.0% 26.3% 24.9%
Total, All Taxpayers....| -$29,771 4.1% $734 100.0% $704 100.0% 11.0% 10.5%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, (6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote

income attributable to the proposal.

Page 4 of 6

(2) plus additional


#D-97-25 Y

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 1997
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
CATEGORY (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000........ -$4 -0.1% -$5 -0.8% $5 -0.8% 5.9% -5.9%
10,000 to 20,000. -120 73.0% 4 -0.6% -4 0.7% -1.1% -1.1%
-479 -2.9% 16 2.6% 16 2.5% 3.3% 3.2%
-1,322 -3.9% 34 5.3% 33 5.1% 5.9% 5.7%
1,234 -3.0% 41 6.4% 40 6.2% 7.3% 7A%
-2,362 -2.2% 109 17.0% 106 16.6% 9.1% 8.8% #
75,000 to 100,000. -700 0.8% 93 14.6% 92 14.4% 11.7% 11.5% i
100,000 to 200,000. 1,028 0.7% 146 22.9% 147 23.0% 15.5% 15.3% :
200,000 and over. 6,174 3.0% 208 32.7% 215 33.6% 26.2% 24.7%
Total, All Taxpayers....| $982 0.2% $637 100.0% $638 100.0% 11.0% 10.8%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, {RA expansion, and
DC individual income tax incentives.

(2) The income concept used to place tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, {3} employer share of FICA tax, [4] worker's compensation,
{5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 1 of 6


#D-97-25 QY

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 1999
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
QUINTILE (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

-$206 -2.6% -$8 1.1% -$8 1.2% 4.9% -5.0%

-1,728 -B6.1% 2 0.3% 0 0.0% 0.4% 0.1%

8,291 -11.8% 45 6.4% 40 5.9% 5.1% 45%

-9,270 8.4% 110 15.8% 101 15.1% 7.8% 7.1%

712,843 -2.3% 549 78.6% 536 80.1% 16.3% 15.7%

$29,337 4.2% $699 100.0% $669 100.0% 11.0% 10.5%

-$6,876 -1.6% $440 63.0% $433 64.7% 19.0% 18.3%

-3,921 1.1% 350 50.0% 346 51.6% 21.6% 21.3%

Highest 1%... -2,399 1.1% 212 30.4% 210 31.3% 27.0% 26.7%

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.

(1) includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
{5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 3 of 6



#D-97-25

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 1999
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

Less than $10,000........ $19 0.4% $5 0.4% $5 0.4% 5.7% 5.7%

10,000 to -1,135 -3.6% 32 2.4% 30 24% 8.3% 8.0%
20,000 to -2,200 -3.0% 72 5.5% 70 5.5% 13.6% 13.2%
30,000 to -3,973 -3.9% 101 7.7% 97 76% 16.5% 15.8%
40,000 to 50,000. 3,755 -3.5% 107 8.1% 103 8.0% 17.5% 16.8%
50,000 to 75,000. -7,559 -2.9% 259 19.8% 251 19.6% 20.0% 19.3%
75,000 to 100,001 -3,845 -1.9% 204 15.6% 200 15.6% 23.0% 22.4%
100,000 to 200,000.. 1,417 -0.5% 264 20.2% 263 20.5% 25.1% 24.7%
200,000 and over. -2,004 -0.8% 264 20.2% 262 20.4% 30.2% 28.7%
Total, All Taxpayers....| -$25,869 -2.0% $1,309 100.0% $1,283 100.0% 20.6% 20.1%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.
(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for heaith plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, (6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
{8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.
(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional

income attributable to the proposal.

Page 3 of 6



#D-97-25 Q

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 1998
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
QUINTILE (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions “Percent Billions Percent Billions Percent Percent Percent
-$85 0.9% $9 0.7% $9 0.7% 6.0% 5.9%
1,394 -2.8% 51 4.0% 49 4.0% 10.5% 10.2%
-4,672 -3.5% 134 10.7% 130 10.5% 15.9% 15.4%
-8,602 -3.4% 252 20.1% 243 19.8% 18.6% 18.0%
-7,049 -0.9% 807 64.4% 800 65.0% 25.0% 24.3%
-$21,801 1.7% $1,253 100.0% $1,231 100.0% 20.7% 20.1%
$1,755 0.3% $588 47.0% $586 47.6% 26.5% 25.7%
534 0.1% 428 34.2% 429 34.8% 27.6% 27.6%
779 0.3% 228 18.2% 229 18.6% 30.2% 30.3%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.
(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.
(2) The income concept used to place tax retums into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad.
(3) Federal taxes are equal to individual income tax {including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.
(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.
(5) Less than 0.05%.

Page 2 of 6


#D-97-25 Q

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 2000
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
QUINTILE (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
-$96 0.9% $10 0.7% $10 0.8% 6.0% 5.9%
-1,583 -2.7% 58 4.2% 56 4.2% 10.8% 10.5%
5,114 -3.4% 148 10.8% 143 10.7% 15.9% 15.4%
-8,647 3.2% 274 20.0% 265 19.7% 18.5% 17.9%
Highest......... -10,412 -1,.2% 880 64.2% 870 64.7% 25.0% 24.3%
Total, All Taxpayers... ~$25,852 1.9% $1,371 100.0% $1,345 100.0% 20.6% 20.1%
Highest 10%... -$5,175 -0.8% $642 46.8% $637 474% 26.5% 25.8%
Highest 5%. -2,766 -0.6% 468 34.1% 465 34.6% 27.7% 27.5%
Highest 1%. 2,105 0.8% 249 18.1% 246 18.3% 30.3% 30.1%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
{8] excluded income of U.S. citizens living abroad.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal,

(5) Less than 0.05%.

Page 4 of 6


#D-97-25

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 1998
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent

Less than $10,000.. $20 0.4% $5 0.4% $5 0.4% 5.4% 5.5%

10,000 to 20,000. -1,076 3.4% 31 2.5% 30 2.5% 8.5% 8.2%
20,000 to 30,000. 2,137 -3.0% 70 5.6% 68 5.5% 13.7% 13.3%
30,000 to 40,00 -3,914 -4.0% 98 7.8% 94 7.6% 16.5% 15.8%
40,000 to 50,000. -3,698 -3.6% 103 8.2% 99 8.0% 17.7% 17.0%
50,000 to 75,000.. -7,434 3.0% 251 20.0% 244 19.8% 20.2% 19.5%
75,000 to 100,001 -3,595 “1.9% 193 15.4% 189 15.4% 23.1% 22.5%
100,000 to 200,000. -828 -0.3% 251 20.0% 250 20.3% 25.1% 24.8%
200,000 and over.......... 862 0.3% 251 20.0% 252 20.5% 30.2% 28.6%
Total, All Taxpayers....|_ -$21,801 1.7% $1,253 100.0% $1,231 100.0% 20.7% 20.1%
Source: Joint Committee on Taxation

Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.
(3) Federal taxes are equal to individual income tax {including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 2 of 6



#D-97-25

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 1997
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000........ $9 0.2% $5 0.4% $5 0.4% 5.4% 5.4%
10,000 to 20,000.. -92 0.3% 3 2.6% 31 2.6% 8.5% 8.5%
20,000 to -446 "0.7% 68 5.7% 68 5.6% 13.8% 13.7%
30,000 to 1,285 1.3% 95 7.9% 94 7.8% 16.6% 16.4%
40,000 to 1,197 1.2% 100 8.3% 98 8.2% 17.9% 17.6%
50,000 to -2,277 -0.9% 243 20.2% 241 20.0% 20.3% 20.0%
75,000 to 100,000. -630 0.3% 183 15.2% 183 15.2% 23.1% 22.9%
100,000 to 200,000.. 1,139 0.5% 237 19.7% 238 19.8% 25.2% 24.8%
200,000 and over. 6,226 2.6% 240 20.0% 246 20.4% 30.2% 28.3%
Total, All Taxpayers...) $1,445 0.1% $1,202 100.0% $1,204 100.0% 20.7% 20.4%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AG!) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
{8} excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 1 of 6


#D-97-25 Y

17-Jun-97
. DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
INDIVIDUAL INCOME TAX RECONCILIATION PROVISIONS (1)
Calendar Year 2002
CHANGE IN INDIVIDUAL INCOME INDIVIDUAL INCOME Effective Tax Rate (4)
INCOME INDIVIDUAL TAX (3) UNDER TAX (3) UNDER Present
CATEGORY (2) INCOME TAX (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000......... -$70 1.3% -$6 -0.7% -$6 -0.7% 61% 6.2%
10,000 to 20,000.. +1,564 +25.4% 6 -0.8% 8 -1,0% “1.6% +2.0%
20,000 to 30,000. -2,675 14.7% 18 2.2% 16 2.0% 3.1% 2.6%
30,000 to 40,000. -4,426 -11.0% 40 4.9% 36 4.6% 5.8% 5.1%
40,000 to 50,000. ~4,245 -B.6% 49 6.1% 45 5.8% 7A% 6.5%
50,000 to 75,000. -8,159 6.4% 128 15.8% 120 15.4% 8.7% 8.2%
75,000 to 100,000. -4,834 -3.8% 126 15.5% 121 15.5% 11.5% 11.0%
100,000 to 200,000. -2,545 -1.3% 192 23.7% 190 24.4% 15.4% 15.1%
200,000 and over... -3,360 1.3% 269 33.1% 265 34.1% 26.3% 24.8%
Total, All Taxpayers....| -$31,879 3.9% $811 100.0% $779 100.0% 11.1% 10.6%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes family credit, DCTC provisions, individual AMT provisions, capital gains reform, education incentives, IRA expansion, and
DC individual income tax incentives.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, (3] employer share of FICA tax, [4] worker's compensation,
{5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Includes the outlay portion of the EIC.

(4) The effective tax rate is equal to individual income tax divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 6 of 6


#D-97-25 Q

17-Jun-97
DISTRIBUTIONAL EFFECTS OF THE
REVENUE RECONCILIATION PROVISIONS CONTAINED
IN THE SENATE FINANCE COMMITTEE CHAIRMAN'S MARK (1)
Calendar Year 1999
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL , UNDER UNDER Present
QUINTILE (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
-$92 -0.9% $10 0.7% $10 0.7% 6.0% 5.9%
-1,498 -2.8% 54 4.1% §3 4.1% 10.6% 10.3%
-4,920 -3.5% 141 10.8% 136 10.6% 15.9% 15.4%
-8,673 3.3% 262 20.0% 253 19.7% 18.5% 17.9%
710,686 -1.3% 842 64.3% 831 64.8% 25.0% 24.3% . %
$25,869 +2.0% $1,309 100.0% $1,283 100.0% 20.6% 20.1% &
-$5,264 -0.9% $614 46.9% $609 47.4% 26.5% 25.7%
2,757 -0.6% 447 34.1% 444 34.6% 27.6% 27.4%
-1,969 -0.8% 209 16.0% 207 16.1% 26.6% 26.3% 8

Source: Joint Committee on Taxation
Detail may not add to total due to rounding. os

(1) Includes family credit, individual AMT provisions, capital gains reform, education incentives, IRA expansion,
and air travel taxes attributable to personal travel,
(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, {3] employer share of FICA tax, [4] workers compensation,
[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, (7] alternative minimum tax Preference items, and
[8} excluded income of U.S. citizens living abroad.
(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the Proposal.

(5) Less than 0.05%.

Page 3 of 6