Bushs Tax Reform

President George W. Bush’s Tax Relief Plan, how much of a gamble is it? Some of the dynamics of Pres. Bush’s tax relief are as follows: Replacing the current tax rates with a simplified rate structure; Doubling the child tax credit to one thousand dollars per child and applying the credit to the Alternative Minimum Tax (AMT); Reducing the marriage penalty by reinstating the ten percent deduction for two-earner couples; Eliminating the death …

…Tax Rates by 2001 Taxable Income* Current Code Bush Plan** Single Single $0 $27,050 15% $0 $6,000 10% $27,050 $65,550 28% $6,000 $27,050 15% $65,550 $136,750 31% $27,050 $136,750 25% $136,750 $297,350 36% $136,750 -- 33% $297,350 -- 39.6% Head of Household Head of Household $0 $36,250 15% $0 $10,000 10% $36,250 $93,650 28% $10,000 $36,250 15% $93,650 $151,650 31% $36,250 $151,650 25% $151,650 $297,350 36% $151,650 -- 33% $297,350 -- 39.6% Married- Joint Filing Married- Joint Filing $0 $45,200 15% $0 $12,000 10% $45,200 $109,250 28% $12,000 $45,200 15% $109,250 $166,500 31% $45,200 $166,500 25% $166,500 $297,350 36% $166,500 -- 33% $297,350 -- 39.6% * Taxable income is income less deductions and personal exemptions.**Rate schedule assumes tax plan is fully phased in. Graph: 1b (source: Executive Summary from the Presidents Tax Relief Plan www.bushtaxreliefplan.com ) *......GO TO WEBSITE TO GET THE RED AND BLUE BAR CHART...... www.bushtaxreliefplan.com )