Bush Tax Cuts: It's Your Money

Part 2: Examples of the Bush tax cuts at work

More of this Feature • Part 1: How it Works    Join the Discussion "I'm in a high tax bracket and I'll be the first one to admit Republicans are NOT for 'We The People' ... The Republican party has millions brainwashed with this fundamental difference between Democrats." JOEYBALBOA     Related Resources • Clinton Vetoes Death Tax Repeal Bill • Fuzzy Math? • Bush - Gore on Money • Congress Today    From Other Guides • Marriage Penalty Tax • Canadian Tax Info • Taxes & Your Job • Taxes & the Military • Taxes & Veterans • Income Tax Glossary    Elsewhere on the Web • IRS Forms Download • Bush Tax Calculator • Bush Tax Calculator II • Bush's Texas Tax Cuts

The following examples of how the Bush income tax cut plan could impact families and individuals of various incomes and filing status. All examples are based on the following assumptions:

• All dependents are 17 years of age or under (qualifies for Child Tax Credit)
• All use the standard deduction, rather than itemized deductions
• All incomes shown are gross incomes, excluding long-term capital gains

Remember, the Bush tax cut plan must be approved by Congress and, even if approved, probably won't affect your taxes until at least 2002. 

Single - 0 Children
Income
$ 26,000 Current tax: $ 2843 New tax: $ 2542 Savings: $ 301
$ 36,000 Current tax: $ 4758 New tax: $ 4362 Savings: $ 396
$ 50,000 Current tax: $ 8678 New tax: $ 7862 Savings: $ 816
$ 76,000 Current tax: $16153 New tax: $ 14363 Savings: $ 1791
$ 100,000 Current Tax: $ 23593 New tax: $ 20362 Savings: $ 3231

Single - 1 Child
Income
$ 26,000 Current tax: $ 1623 New tax: $ 622 Savings: $ 1001 
$ 36,000 Current tax: $ 3123 New tax: $ 2122 Savings: $ 1001
$ 50,000 Current tax: $ 5690 New tax: $ 4582 Savings: $ 1108
$ 76,000 Current tax: $ 13020 New tax: $ 11082 Savings: $ 1938
$ 100,000 Current Tax: $ 20190 New tax: $ 17082 Savings: $ 3108

Single - 2 children 
Income
$ 26,000 Current tax: $ 710 New tax: $ 0 Savings: $ 710 
$ 36,000 Current tax: $ 2210 New tax: $ 710 Savings: $ 1500
$ 50,000 Current tax: $ 4420 New tax: $ 2895 Savings: $ 1525
$ 76,000 Current tax: $ 11750 New tax: $ 9395 Savings: $ 2355
$ 100,000 Current Tax: $ 19420 New tax: $ 15395 Savings: $ 4025

Married Filers - 0 Children - 2nd Earner Income = 0%
Income
$ 26,000 Current tax: $ 1995 New tax: $ 1395 Savings: $ 600 
$ 36,000 Current tax: $ 3495 New tax: $ 2895 Savings: $ 600
$ 50,000 Current tax: $ 5595 New tax: $ 4995 Savings: $ 600
$ 76,000 Current tax: $ 12127 New tax: $ 10920 Savings: $ 1207
$ 100,000 Current Tax: $ 18847 New tax: $ 16920 Savings: $ 1927

Married - 2 Children - 2nd Earner Income = 0%
Income
$ 26,000 Current tax: $ 170 New tax: $ 0 Savings: $ 170  
$ 36,000 Current tax: $ 1670 New tax: $ 70 Savings: $ 1600
$ 50,000 Current tax: $ 3770 New tax: $ 2170 Savings: $ 1600
$ 76,000 Current tax: $ 9587 New tax: $ 7545 Savings: $ 2042
$ 100,000 Current Tax: $ 16307 New tax: $ 13545 Savings: $ 2762

Married - 2 Children - 2nd Earner Income = 50%
Income
$ 26,000 Current tax: $ 170 New tax: $ 0 Savings: $ 170 
$ 36,000 Current tax: $ 1670 New tax: $ 0  Savings: $ 1670
$ 50,000 Current tax: $ 3770 New tax: $ 1795 Savings: $ 1975
$ 76,000 Current tax: $ 9587 New tax: $ 6795 Savings: $ 2792
$ 100,000 Current Tax: $ 16307 New tax: $ 12795 Savings: $ 3512

The examples above were generated by the George Bush Tax Calculator, which limits incomes to $100,000 and does not allow for itemized deductions. For a more detailed analysis of how the Bush tax plan might affect your tax situation, try the Tax Clarity.com Bush Tax Calculator. 

 

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