Tax Provisions in Title VII of H.R.1
Baseline: Law Prior to the 2025 Budget Reconciliation Act
Percent Change in After-Tax Income1 by Expanded Cash Income Percentile and Racial or Ethnic Group, 20262
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0325-4).
Notes: Income percentile classes in this figure are calculated based on all taxpayers, not those of a particular race or ethnicity. TPC's imputations of race or ethnicity may not fully reflect the differential effects by race and ethnicity of Social Security Number requirements for certain tax benefits. For more information on TPC's method to impute race and ethnicity in its tax data, see
https://taxpolicycenter.org/publications/new-approach-estimating-impact-tax-policies-race-and-ethnicity
(1) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate taxes; customs duties; and excise taxes.
(2) Calendar year. Baseline is the law currently in place as of January 1, 2025. Includes all tax provisions in Title VII of H.R.1, as passed by the House and Senate, that exceed $100 million of revenue in the year of analysis but excludes provisions related to the premium tax credit (PTC). Also excludes certain provisions related to Social Security Number (SSN) requirements for taxpayers with no dependents. For more information on TPC's baseline definitions, see https://taxpolicycenter.org/projects/resources/tax-model-resources/tpc-baseline-definitions
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see https://taxpolicycenter.org/projects/resources/tax-model-resources/income-measure-used-distributional-analyses-tax-policy-center
(4) 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 2025 dollars): 20% $34,600; 40% $66,800; 60% $119,200; 80% $217,100; 90% $317,700; 95% $460,800; 99% $1,141,900; 99.9% $5,184,900.
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(1) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate taxes; customs duties; and excise taxes.
(2) Calendar year. Baseline is the law currently in place as of January 1, 2025. Includes all tax provisions in Title VII of H.R.1, as passed by the House and Senate, that exceed $100 million of revenue in the year of analysis but excludes provisions related to the premium tax credit (PTC). Also excludes certain provisions related to Social Security Number (SSN) requirements for taxpayers with no dependents. For more information on TPC's baseline definitions, see https://taxpolicycenter.org/projects/resources/tax-model-resources/tpc-baseline-definitions
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see https://taxpolicycenter.org/projects/resources/tax-model-resources/income-measure-used-distributional-analyses-tax-policy-center
(4) 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 2025 dollars): 20% $34,600; 40% $66,800; 60% $119,200; 80% $217,100; 90% $317,700; 95% $460,800; 99% $1,141,900; 99.9% $5,184,900.
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