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Campaign 2000 Information Page

Preliminary Summary of the Gore Tax Plan (more to come)
August 30, 2000

Click here to see this analysis in PDF format.
Democratic presidential candidate Al Gore has proposed a collection of targeted tax breaks that he says will cost a total of $500 billion over the next decade. The proposals include:

Due to data constraints and other problems, we have not yet been able to do a distributional analysis of the Gore proposals. Because most of the proposals are limited to taxpayers below certain income levels, however, it seems clear that the bulk of the proposed tax breaks would go to middle- and lower-income taxpayers.

The following table shows the maximum income cutoffs for the Gore proposals, where applicable.

Income limits for Gore tax cuts
Personal items Singles Couples Notes
Earned-income tax credit changes 35,600 37,000  
Health insurance personal credits Mostly lower end Only for those without employer paid insurance
Dependent care credit rates 60,000 60,000 (not counting indexing, increase in age limit and infant credit, which are not capped)
Retirement Savings Plus 50,000 100,000  
Married standard deduction na 100,000 94% under $100K, 80% under $75K
Education credits 60,000 120,000 Phase outs end
Long-term care credit 75,000 110,000 Phase outs start
Long-term care credit 135,000 170,000 Phase outs end (generally)
Tax credits for buying efficient products no upper limit  
Estate tax cuts no upper limit All in top few percent
Business items
Business health insurance credits Limited to businesses below a certain size
R&E tax credit No limit (almost all large corporations)
Energy-efficiency business credits No limit

Proposed Changes to the Earned-Income Tax Credit:

Current Law
2000 levels
3+ kids Everyone  
(like 2+) 2+ kids 1 kid no kids
Max base $ 9,720 $ 9,720 $ 6,920 $ 4,610
Rate 40% 40% 34% 7.65%
Max credit 3,888 3,888 2,353 353
PO rate 21.06% 21.06% 15.98% 7.65%
PO start 12,690 12,690 12,690 5,770
PO end 31,149 31,149 27,413 10,380
Proposed
2000 levels
All but 2-earner couples 2-earner couples
3+ kids 2 kids 1 kid no kids 3+ kids 2 kids 1 kid no kids
Max base $ 9,720 $ 9,720 $ 6,920 $ 4,610 $ 9,720 $ 9,720 $ 6,920 $ 4,610
Rate 45% 40% 34% 7.65% 45% 40% 34% 7.65%
Max credit 4,374 3,888 2,353 353 4,374 3,888 2,353 353
PO rate 19.06% 19.06% 15.98% 7.65% 19.06% 19.06% 15.98% 7.65%
PO start 12,690 12,690 12,690 5,770 14,140 14,140 14,140 7,220
PO end 35,636 33,086 27,413 10,380 37,086 34,536 28,863 11,830
Changes  
Max base
Rate +5% +5%
Max credit +486 +486
PO rate 2% 2% 2% 2%
PO start +1,450 +1,450 +1,450 +1,450
PO end +4,486 +1,937 +5,936 +3,387 +1,450 +1,450
Benefits start at income of $ 1 $ 12,690 na na $ 1 $ 12,690 $ 12,690 na
End at $ 35,636 $ 33,086 na na $ 37,086 $ 34,536 $ 28,863 na

Matching Rules for Gore Savings Plans:

Income Govt
Match
Max govt amount Max total (x2 for mfj) Ind. contributes (max)
  Couples Others thru 06 07-08 2009 thru 06 07-08 2009 thru 06 07-08 2009
Less than 30,000 15,000 300% 750 1,125 1,500 1,000 1,500 2,000 250 375 500
Up to 60,000 30,000 100% 500 750 1,000 1,000 1,500 2,000 500 750 1,000
Up to 100,000 50,000 33% 250 375 500 1,000 1,500 2,000 750 1,125 1,500
Counting deductibility of contribution
Less than 30,000 15,000 371% 788 1,181 1,575 1,000 1,500 2,000 213 319 425
Up to 60,000 30,000 135% 575 863 1,150 1,000 1,500 2,000 425 638 850
Up to 100,000 50,000 85% 460 690 920 1,000 1,500 2,000 540 810 1,080

Dependent Care Credit Changes:


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