Citizens for Tax Justice
1311 L Street, NW
Washington, DC
 Friday, July 28, 2000
Contact: Bob McIntyre,
202/626-3780

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Effects of Congress’s Passed & Pending Tax Bills in 2000 So Far
(Annual effects at 1999 income levels, $-billions except averages)
Income Group Income Range Average Income Marriage Penalty Estate Tax Repeal Retirement Savings Tax Breaks Rest of Minimum Wage Bill 3% Telephone Tax Repeal Taxation of Social Security Health & Long-Term Care Insur. Total Tax Cuts Average Tax Cuts % of Total Tax Cut
Lowest 20% Less than $13,600 $ 8,600 $ –0.1 $ –0.0 $ –0.0 $ –0.0 $ –0.5 $ — $ –0.4 $ –0.9 $ –37 1.2%
Second 20% $13,600–24,400 18,800 –1.0 –0.0 –0.0 –0.1 –0.8 — –1.0 –2.9 –116 3.6%
Middle 20% $24,400–39,300 31,100 –1.8 –0.0 –0.2 –0.2 –1.0 –0.0 –1.7 –4.9 –193 6.0%
Fourth 20% $39,300–64,900 50,700 –2.7 –0.0 –0.9 –0.3 –1.3 –1.2 –1.9 –8.2 –323 10.1%
Next 15% $64,900–130,000 86,800 –14.3 –0.0 –1.6 –0.4 –1.1 –3.9 –2.2 –23.5 –1,238 29.0%
Next 4% $130,000–319,000 183,000 –4.3 –2.5 –1.0 –0.5 –0.4 –1.5 –0.9 –11.1 –2,186 13.7%
Top 1% $319,000 or more 915,000 –1.0 –25.2 –0.9 –1.4 –0.3 –0.5 –0.3 –29.5 –23,331 36.4%
ALL   $ 50,800 $ –25.2 $ –27.7 $ –4.5 $ –2.8 $ –5.3 $ –7.1 $ –8.4 $ –81.0 $ –635 100.0%
ADDENDUM
Bottom 60% Less than $39,300 $ 19,500 $ –2.9 $ –0.0 $ –0.2 $ –0.3 $ –2.3 $ –0.0 $ –3.1 $ –8.8 $ –115 10.8%
Top 10% $92,500 or more 218,000 –11.1 –27.7 –2.7 –2.0 –1.0 –3.4 –2.1 –50.1 –3,954 61.8%
Figures includes the House and Senate-passed marriage penalty reduction bill, the House and Senate-passed estate tax repeal, the pending "Comprehensive Retirement Security and Pension Reform Act," the tax cuts in the House-passed minimum wage bill not included in the previously mentioned bills, the repeal of the 3% federal telephone tax, the pending reduction in income taxes on Social Security benefits for better-off retirees (the top 23% of those with Social Security benefits), and the House-passed deductions for health and long-term care insurance. All provisions are shown fully effective at 1999 income levels.
Source: Institute on Taxation and Economic Policy Tax Model.
Citizens for Tax Justice, July 2000. PRELIMINARY (4).