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CRS-13
Table 1. Distributional Effects of H.R. 2, as Passed by the House, Calendar Year 2003
- b ~Effective Tax Ratec hne
Income Categorya Changes in Federal Taxesb AfTChang
Present Law Proposal After-Tax]
Millions Percent Percent Percent Percei
Less than $10,000 -$16 -0.3% 7.2% 7.2% 0.0%
10,000 to 20,000 -$334 -1.4% 6.0% 5.9% 0.1%
20,000 to 30,000 -$1,611 -3.1% 10.2% 9.9% 0.3%
30,000 to 40,000 -$2,906 -3.5% 13.8% 13.3% 0.6%
40,000 to 50,000 -$3,856 -4.3% 15.8% 15.1% 0.8%
50,000 to 75,000 -$11,088 -4.4% 17.5% 16.7% 0.9%
75,000to 100,000 -$13,023 -5.5% 19.9% 18.8% 1.4%
100,000 to 200,000 -$28,292 -7.0% 23.5% 21.8% 2.1%
200,000 and over -$41,254 -8.4% 28.3% 25.6% 3.3%
Total, All Taxpayers -$102,430 -6.3% 19.9% 18.5% 1.6%
Source: Joint Committee on Taxation in addition to CRS calculations.
Notes: Includes acceleration of the EGTRRA provisions concerning the child credit, the marriage penalty in the 15% tax bracket and standard deduction, marginal rates, and the 10% t
increase in the AMT exemption and a 15%15% rate on dividends and capital gains.
a. 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
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
excluded income of U.S. citizens living abroad. Categories are measured at 2003 levels.
b. 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). Corporal
is not included due to uncertainty concerning the incidence of the tax. Individuals who are dependents of the other taxpayers and taxpayers with negative income are excluded fro
Does not include indirect effects.
c. The effective tax rate is equal to federal taxes described in note 3, divided by: income described in note 2 plus additional income attributable to the proposal.in
[ncome
nt
ax bracket, an
insurance, (3)
items, and (8)
ate income tax
m the analysis.
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Brumbaugh, David L. & Richards, Don C. The 2003 Tax Cut: Proposals and Issues, report, July 16, 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc855800/m1/16/: accessed July 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.