tax policy center

Tax Topics

2009 Tax Stimulus
2012 Election Tax Plans
2015 Budget
Alternative Minimum Tax (AMT)
American Jobs Act of 2011
Brief Description of the Model 2015
Camp Tax Reform Plan
Current-Law Distribution of Taxes
Deficit Reduction Proposals
Distribution of the 2001 - 2008 Tax Cuts
Dynamic Scoring
Earned Income Tax Credit
Economic Stimulus
Education Tax Incentives
Estate and Gift Taxes
Expiration of the Bush Tax Cuts
Explanation of Income Measures 2013
Federal Budget
Fiscal Cliff
Fiscal Crisis
Guide to TPC Tables
Health Insurance Tax Incentives
How to Interpret Distribution Tables 2013
Marriage Penalties
Model FAQ 2013
Model Related Resources and FAQs
Payroll Taxes
Presidential Transition - 2009
Recent Tax Stimulus Legislation
Retirement Saving
Tax Encyclopedia Index
Tax Expenditures
Tax Reform Proposals
TPC’s Methodology for “Off-Model” Revenue Estimates
Value-Added Tax (VAT)
Who Doesn't Pay Federal Taxes?
Working Families

E-mail Newsletter

Enter your e-mail address to receive periodic updates on TPC publications and events.

> newsletter archive

tax topics


Tax Provisions Affecting Only High-Income Taxpayers

During the 2008 campaign, President Obama promised that he would raise taxes only on households with the highest income—over $250,000 for married couples and over $200,000 for single people. In keeping with that promise, he proposes to increase taxes for those taxpayers by allowing the 2001-03 tax cuts to expire as scheduled in 2013 and limiting the value of itemized deductions to 28 percent.

Compared against current law, these provisions would affect less than 5 percent of households, increasing taxes for about five-sixths of them and cutting taxes for the rest. Taxpayers at the very top of the income distribution would be much more likely to face tax increases: among those in the top 1 percent, more than 85 percent would see their tax bills rise by an average of about $22,000 while 2 percent would pay an average of about $400 less tax.

The net two sections discuss in greater detail the president’s tax proposals affecting only high-income taxpayers.

Distribution Tables

Tax Provisions Affecting Primarily High-Income Taxpayers

2013 versus current law by cash income
2013 versus current law by cash income percentile
2013 versus current policy by cash income

2013 versus current policy by cash income percentile