Examples of the Effects of the Alternative Minimum Tax and Inflation on the Bush Tax Cuts in 2008 Married with Two Children, One Earner, All Ordinary Income, 1999 levels
	Cur. Law	Bush	Cur. Law	Bush	Cur. Law	Bush	Cur. Law	Bush	Cur. Law	Bush	Cur. Law	Bush	Cur. Law	Bush
Adj. Gross Income	$85,000		$100,000		$125,000		$185,000		$250,000		$400,000		$525,000
Regular Tax—
Personal exemptions	11,000		11,000		11,000		11,000		5,500		—		—
Itemized deductions	17,700		20,500		25,200		35,600		44,600		60,400		68,300
Taxable income	56,300		68,500		88,800		138,400		199,900		339,600		456,700
Tax before credits	10,168	9,265	13,584	12,315	19,268	17,390	34,186	29,790	55,319	48,473	107,643	94,574	154,014	133,217
Child credits	800	1,600	320	1,600	—	1,600	—	1,200	—	160	—	—	—	—
Regular tax	9,368	7,665	13,264	10,715	19,268	15,790	34,186	28,590	55,319	48,313	107,643	94,574	154,014	133,217
Apparent tax cut	–1,703		–2,549		–3,478		–5,596		–7,006		–13,069		–20,797
Alternative Tax—
Taxable income	56,300		68,500		88,800		138,400		199,900		339,600		456,700
Add back pers. exe.	11,000		11,000		11,000		11,000		5,500		—		—
Add back S&L taxes	5,900		7,100		9,000		13,400		17,900		27,400		33,600
Subtotal	73,200		86,600		108,800		162,800		223,300		367,000		490,300
Alt. exemption	36,000		36,000		36,000		25,300		10,200		—		—
Alt. taxable income	37,200		50,600		72,800		137,500		213,100		367,000		490,300
Alt. tax before credits	9,672		13,156		18,928		35,750		56,866		99,958		134,482
Child credits	800	1,600	320	1,600	—	1,600	—	1,200	—	160	—	—	—	—
Alternative Tax	8,872	8,072	12,836	11,556	18,928	17,328	35,750	34,550	56,866	56,706	99,958	99,958	134,482	134,482
Alternative adds:	—	+407	—	+841	—	+1,538	+1,564	+5,960	+1,548	+8,393	—	+5,384	—	+1,265
Total income tax	9,368	8,072	13,264	11,556	19,268	17,328	35,750	34,550	56,866	56,706	107,643	99,958	154,014	134,482
Net Bush Tax Cut	–1,296		–1,708		–1,940		–1,200		–160		–7,685		–19,532
Alter. tax lowers Bush tax cut by:	–24%		–33%		–44%		–79%		–98%		–41%		–6%
The effects of Bush's decision not to reduce the alternative minimum tax rates are not taken into account on the "Bush Tax Calculator" on Bush's website, causing the "calculator" to hugely overstate Bush's tax cuts for families earning from about $60,000 up to the calculator's $100,000 limit. The effects abate at very high incomes. Notes: Itemized deductions shown above, including state and local taxes deducted net of refunds, are estimated actual averages for couples that itemize deductions in 1999. Figures assume extension of the rule allowing personal credits against the alternative minimum tax under both current law and the Bush plan. Citizens for Tax Justice, May 2000