Summary

The 1999 GOP Tax Plan
(As approved by the House-Senate Conference Committee)
PRELIMINARY (Updated to Reflect Late-Night August 4 Changes)
Income Group	Number of tax units (000)	Income Range	Average Income	Total ($-billions)	Average Tax Cut	% of Total Tax Cut
Lowest 20%		Less than $13,300	$ 8,400		$ –25	0.4%
Second 20%		$13,300–23,800	18,300		–136	2.5%
Middle 20%		$23,800–38,200	30,300		–311	5.6%
Fourth 20%		$38,200–62,800	49,100		–567	10.3%
Next 15%		$62,800–124,000	83,600		–1,733	23.5%
Next 4%		$124,000–301,000	173,000		–4,476	16.2%
Top 1%		$301,000 or more	837,000		–45,835	41.4%
ALL			$ 48,700		$ –1,096	100.0%
ADDENDUM
Bottom 60%		Less than $38,200	$ 19,000		$ –157	8.5%
Top 10%		$89,000 or more	204,000		–7,520	68.1%
Note: Estimates include the effects of (1) cutting all income tax rates by one percentage point; (2) raising the starting point for the 28% tax bracket for couples; (3) capital gains tax cuts; (4) raising the standard deduction for couples to double the single amount; (5) a small increase in the Earned Income Tax Credit; (6) increases in the dependent care credit; (7) increasing the annual IRA contribution limit to $5,000, raising income limits for Roth IRAs and various other retirement savings changes; (8) allowing deductions for health insurance premiums for those with no employer plan; (9) elimination of the individual Alternative Minimum Tax; (10) estate tax elimination; and (11) corporate tax reductions. Figures show the effects of the provisions fully phased in, at 1999 levels. Source: Institute on Taxation and Economic Policy Tax Model. PRELIMINARY. Citizens for Tax Justice, August 5, 1999

Last Updated on 8/5/99
By MWG