The President's Tax Cut

A COMPARISON OF THE TAX BURDEN FOR EACH TAX RATE

1. Introduction of a 10% tax rate to the Basic 15% tax rate
In 1997 the base tax rate of 15% collected 520 billion dollars . The new 10% rate would reduce the revenue for the combined rates to 483 billion saving the taxpayers 37 billion dollars each year.

2. Eliminating the marriage penalty
The Presidents plan raises both the standard deduction and top of the 15% tax bracket for married tax filers to twice that for single filers. For the 1997 tax year these changes would save taxpayers 28 billion dollars.

3. Reducing the 28% tax bracket to 25%
The 28% tax bracket imposed 13% a surcharge on taxable income exceeding $24,650 for single filers or $41,200 for joint filers. In 1997 this tax bracket collected 203 billion dollars. The new 25% tax rate would save taxpayers 46 billion dollars

4. Reducing the 31% tax bracket to 28%

The 31% tax bracket imposes an additional surcharge of 3% on income exceeding $59,750 for single filers or $99,600 for married filers. In 1997 this tax bracket collected 27 billion dollars it remains unchanged in the presidents tax cut.

5. Reducing the 36% tax bracket to 33%
this tax bracket represents a surcharges of 5% and collected an additional 27 billion dollars. It remains unchanged in the presidents tax cut.

6. Reducing the 39.6% tax bracket to 35%
This tax bracket represents a surcharges of 3.6%. It Collected an additional 11 billion dollars in 1997. The presidents tax cut reduces this surcharge to 2% saving the taxpayers 4.7 Billion dollars.

Reference: INDIVIDUAL INCOME TAX RETURNS 1997 (IRS #1304 Rev. 4-2000)
Roland A. Boucher, Chairman www.taxreform2000.org