Tax Cuts 2003
Tax Cuts 2001-2003
              EFFECT OF THE 2003 TAX CUT ON MARGINAL RATES

                 Marginal Rate    Upper   Upper         Effective Rate
  Lower   Upper ---------------     Old     New Percent ---------------
  Limit   Limit     Old     New     Tax     Tax     Cut     Old     New
------- ------- ------- ------- ------- ------- ------- ------- -------
SINGLE
      0    6000      10      10     600     600     0.0    10.0    10.0
   6000    7000      15      10     750     700     6.7    10.7    10.0
   7000   28400      15      15    3960    3910     1.3    13.9    13.8
  28400   68800      27      25   14868   14010     5.8    21.6    20.4
  68800  143500      30      28   37278   34926     6.3    26.0    24.3
 143500  311950      35      33   96236   90515     5.9    30.8    29.0
 311950       ^    38.6      35  361823  331332     8.4    36.2    33.1
HEAD OF HOUSEHOLD
      0   10000      10      10    1000    1000     0.0    10.0    10.0
  10000   38050      15      15    5208    5208     0.0    13.7    13.7
  38050   98250      27      25   21462   20258     5.6    21.8    20.6
  98250  159100      30      28   39717   37296     6.1    25.0    23.4
 159100  311950      35      33   93214   87736     5.9    29.9    28.1
 311950       ^    38.6      35  358801  328554     8.4    35.9    32.9
MARRIED-JOINT FILING
      0   12000      10      10    1200    1200     0.0    10.0    10.0
  12000   14000      15      10    1500    1400     6.7    10.7    10.0
  14000   47450      15      15    6518    6418     1.5    13.7    13.5
  47450   56800      27      15    9042    7820    13.5    15.9    13.8
  56800  114650      27      25   24662   22283     9.6    21.5    19.4
 114650  174700      30      28   42677   39097     8.4    24.4    22.4
 174700  311950      35      33   90714   84389     7.0    29.1    27.1
 311950       ^    38.6      35  356301  325207     8.7    35.6    32.5

^ No upper limit.  $1,000,000 is assumed for upper tax calculations
  (tax calculations are on taxable income equal to the upper limit).

===============================================================================
            PERCENT REDUCTION IN INCOME TAXES VIA THE 2003 TAX CUT*

                SINGLE             HEAD OF HOUSEHOLD     MARRIED-JOINT FILING
        ----------------------- ----------------------- -----------------------
Taxable     Old     New Percent     Old     New Percent     Old     New Percent
 Income     Tax     Tax     Cut     Tax     Tax     Cut     Tax     Tax     Cut
------- ----------------------- ----------------------- -----------------------
   3000     300     300     0.0     300     300     0.0     300     300     0.0
   6000     600     600     0.0     600     600     0.0     600     600     0.0
   7000     750     700     6.7     700     700     0.0     700     700     0.0
  10000    1200    1150     4.2    1000    1000     0.0    1000    1000     0.0
  12000    1500    1450     3.3    1300    1300     0.0    1200    1200     0.0
  14000    1800    1750     2.8    1600    1600     0.0    1500    1400     6.7
  20000    2700    2650     1.9    2500    2500     0.0    2400    2300     4.2
  25000    3450    3400     1.4    3250    3250     0.0    3150    3050     3.2
  28400    3960    3910     1.3    3760    3760     0.0    3660    3560     2.7
  30000    4392    4310     1.9    4000    4000     0.0    3900    3800     2.6
  38050    6566    6323     3.7    5208    5208     0.0    5108    5008     2.0
  40000    7092    6810     4.0    5734    5695     0.7    5400    5300     1.9
  47450    9104    8673     4.7    7746    7558     2.4    6518    6418     1.5
  50000    9792    9310     4.9    8434    8195     2.8    7206    6800     5.6
  56800   11628   11010     5.3   10270    9895     3.7    9042    7820    13.5
  60000   12492   11810     5.5   11134   10695     3.9    9906    8620    13.0
  68800   14868   14010     5.8   13510   12895     4.6   12282   10820    11.9
  70000   15228   14346     5.8   13834   13195     4.6   12606   11120    11.8
  80000   18228   17146     5.9   16534   15695     5.1   15306   13620    11.0
  90000   21228   19946     6.0   19234   18195     5.4   18006   16120    10.5
  98250   23703   22256     6.1   21462   20258     5.6   20234   18183    10.1
 100000   24228   22746     6.1   21987   20748     5.6   20706   18620    10.1
 114650   28623   26848     6.2   26382   24850     5.8   24662   22283     9.6
 120000   30228   28346     6.2   27987   26348     5.9   26267   23781     9.5
 140000   36228   33946     6.3   33987   31948     6.0   32267   29381     8.9
 143500   37278   34926     6.3   35037   32928     6.0   33317   30361     8.9
 159100   42738   40074     6.2   39717   37296     6.1   37997   34729     8.6
 160000   43053   40371     6.2   40032   37593     6.1   38267   34981     8.6
 174700   48198   45222     6.2   45177   42444     6.0   42677   39097     8.4
 180000   50053   46971     6.2   47032   44193     6.0   44532   40846     8.3
 200000   57053   53571     6.1   54032   50793     6.0   51532   47446     7.9
 220000   64053   60171     6.1   61032   57393     6.0   58532   54046     7.7
 240000   71053   66771     6.0   68032   63993     5.9   65532   60646     7.5
 260000   78053   73371     6.0   75032   70593     5.9   72532   67246     7.3
 280000   85053   79971     6.0   82032   77193     5.9   79532   73846     7.1
 300000   92053   86571     6.0   89032   83793     5.9   86532   80446     7.0
 311950   96236   90515     5.9   93214   87736     5.9   90714   84389     7.0
 320000   99343   93332     6.1   96321   90554     6.0   93821   87207     7.1
 340000  107063  100332     6.3  104041   97554     6.2  101541   94207     7.2
 360000  114783  107332     6.5  111761  104554     6.4  109261  101207     7.4
 380000  122503  114332     6.7  119481  111554     6.6  116981  108207     7.5
 400000  130223  121332     6.8  127201  118554     6.8  124701  115207     7.6
 600000  207423  191332     7.8  204401  188554     7.8  201901  185207     8.3
 800000  284623  261332     8.2  281601  258554     8.2  279101  255207     8.6
1000000  361823  331332     8.4  358801  328554     8.4  356301  325207     8.7
2000000  747823  681332     8.9  744801  678554     8.9  742301  675207     9.0

* Percent reduction is for rates only. It does not include the increase in the
  child tax credit or the reduction of the tax on dividends and capital gains.
  Regarding the reduction in the marriage penalty, it does not include the
  increase in the standard deduction for married couples filing jointly but it
  does include the increase in the upper limit of the 15 percent bracket from
  $47,450 to $56,800.  Taxable income between these values was previously taxed
  at 27% but is now taxed at 15%.  This is the cause of the large spike in the
  percent of tax reduction between these two incomes.
Note: Taxable income is income less deductions and personal exemptions
Source: http://www.golombard.com/tax_bracket.html (brackets after 2003 tax cut);
        http://www.turbotax.com/articles/TaxRateSchedulesfor2003.html (brackets
        before 2003 tax cut)


EFFECT OF THE 2001 AND 2003 TAX CUTS ON MARGINAL RATES Marginal Rate Upper Upper Effective Rate Lower Upper --------------- Old New Percent --------------- Limit Limit Old New Tax Tax Cut Old New ------- ------- ------- ------- ------- ------- ------- ------- ------- SINGLE 0 6000 15 10 900 600 33.3 15.0 10.0 6000 7000 15 10 1050 700 33.3 15.0 10.0 7000 27050 15 15 4058 3708 8.6 15.0 13.7 27050 28400 28 15 4436 3910 11.8 15.6 13.8 28400 65550 28 25 14838 13198 11.1 22.6 20.1 65550 68800 31 25 15845 14010 11.6 23.0 20.4 68800 136750 31 28 36910 33036 10.5 27.0 24.2 136750 143500 36 28 39340 34926 11.2 27.4 24.3 143500 297350 36 33 94726 85697 9.5 31.9 28.8 297350 311950 39.6 33 100507 90515 9.9 32.2 29.0 311950 ^ 39.6 35 372975 331332 11.2 37.3 33.1 HEAD OF HOUSEHOLD 0 10000 15 10 1500 1000 33.3 15.0 10.0 10000 36250 15 15 5438 4938 9.2 15.0 13.6 36250 38050 28 15 5942 5208 12.4 15.6 13.7 38050 93650 28 25 21510 19108 11.2 23.0 20.4 93650 98250 31 25 22936 20258 11.7 23.3 20.6 98250 151650 31 28 39490 35210 10.8 26.0 23.2 151650 159100 36 28 42172 37296 11.6 26.5 23.4 159100 297350 36 33 91942 82918 9.8 30.9 27.9 297350 311950 39.6 33 97723 87736 10.2 31.3 28.1 311950 ^ 39.6 35 370191 328554 11.2 37.0 32.9 MARRIED-JOINT FILING 0 12000 15 10 1800 1200 33.3 15.0 10.0 12000 14000 15 10 2100 1400 33.3 15.0 10.0 14000 45200 15 15 6780 6080 10.3 15.0 13.5 45200 56800 28 15 10028 7820 22.0 17.7 13.8 56800 109250 28 25 24714 20933 15.3 22.6 19.2 109250 114650 31 25 26388 22283 15.6 23.0 19.4 114650 166500 31 28 42462 36801 13.3 25.5 22.1 166500 174700 36 28 45414 39097 13.9 26.0 22.4 174700 297350 36 33 89568 79571 11.2 30.1 26.8 297350 311950 39.6 33 95349 84389 11.5 30.6 27.1 311950 ^ 39.6 35.0 367817 325207 11.6 36.8 32.5 ^ No upper limit. $1,000,000 is assumed for upper tax calculations (tax calculations are on taxable income equal to the upper limit). =============================================================================== PERCENT REDUCTION IN INCOME TAXES VIA THE 2001 AND 2003 TAX CUTS* SINGLE HEAD OF HOUSEHOLD MARRIED-JOINT FILING ----------------------- ----------------------- ----------------------- Taxable Old New Percent Old New Percent Old New Percent Income Tax Tax Cut Tax Tax Cut Tax Tax Cut ------- ----------------------- ----------------------- ----------------------- 3000 450 300 33.3 450 300 33.3 450 300 33.3 6000 900 600 33.3 900 600 33.3 900 600 33.3 7000 1050 700 33.3 1050 700 33.3 1050 700 33.3 10000 1500 1150 23.3 1500 1000 33.3 1500 1000 33.3 12000 1800 1450 19.4 1800 1300 27.8 1800 1200 33.3 14000 2100 1750 16.7 2100 1600 23.8 2100 1400 33.3 20000 3000 2650 11.7 3000 2500 16.7 3000 2300 23.3 24000 3600 3250 9.7 3600 3100 13.9 3600 2900 19.4 27050 4058 3708 8.6 4058 3558 12.3 4058 3358 17.3 28400 4436 3910 11.8 4260 3760 11.7 4260 3560 16.4 30000 4884 4310 11.7 4500 4000 11.1 4500 3800 15.6 36250 6634 5873 11.5 5438 4938 9.2 5438 4738 12.9 38050 7138 6323 11.4 5942 5208 12.4 5708 5008 12.3 40000 7684 6810 11.4 6488 5695 12.2 6000 5300 11.7 45200 9140 8110 11.3 7944 6995 11.9 6780 6080 10.3 50000 10484 9310 11.2 9288 8195 11.8 8124 6800 16.3 56800 12388 11010 11.1 11192 9895 11.6 10028 7820 22.0 60000 13284 11810 11.1 12088 10695 11.5 10924 8620 21.1 65550 14838 13198 11.1 13642 12083 11.4 12478 10008 19.8 68800 15845 14010 11.6 14552 12895 11.4 13388 10820 19.2 70000 16217 14346 11.5 14888 13195 11.4 13724 11120 19.0 80000 19317 17146 11.2 17688 15695 11.3 16524 13620 17.6 90000 22417 19946 11.0 20488 18195 11.2 19324 16120 16.6 93650 23549 20968 11.0 21510 19108 11.2 20346 17033 16.3 98250 24975 22256 10.9 22936 20258 11.7 21634 18183 16.0 100000 25517 22746 10.9 23478 20748 11.6 22124 18620 15.8 109250 28385 25336 10.7 26346 23338 11.4 24714 20933 15.3 114650 30059 26848 10.7 28020 24850 11.3 26388 22283 15.6 120000 31717 28346 10.6 29678 26348 11.2 28047 23781 15.2 136750 36910 33036 10.5 34871 31038 11.0 33239 28471 14.3 140000 38080 33946 10.9 35878 31948 11.0 34247 29381 14.2 143500 39340 34926 11.2 36963 32928 10.9 35332 30361 14.1 151650 42274 37616 11.0 39490 35210 10.8 37858 32643 13.8 159100 44956 40074 10.9 42172 37296 11.6 40168 34729 13.5 160000 45280 40371 10.8 42496 37593 11.5 40447 34981 13.5 166500 47620 42516 10.7 44836 39738 11.4 42462 36801 13.3 174700 50572 45222 10.6 47788 42444 11.2 45414 39097 13.9 180000 52480 46971 10.5 49696 44193 11.1 47322 40846 13.7 200000 59680 53571 10.2 56896 50793 10.7 54522 47446 13.0 220000 66880 60171 10.0 64096 57393 10.5 61722 54046 12.4 240000 74080 66771 9.9 71296 63993 10.2 68922 60646 12.0 260000 81280 73371 9.7 78496 70593 10.1 76122 67246 11.7 280000 88480 79971 9.6 85696 77193 9.9 83322 73846 11.4 297350 94726 85697 9.5 91942 82918 9.8 89568 79571 11.2 311950 100507 90515 9.9 97723 87736 10.2 95349 84389 11.5 320000 103695 93332 10.0 100911 90554 10.3 98537 87207 11.5 340000 111615 100332 10.1 108831 97554 10.4 106457 94207 11.5 360000 119535 107332 10.2 116751 104554 10.4 114377 101207 11.5 380000 127455 114332 10.3 124671 111554 10.5 122297 108207 11.5 400000 135375 121332 10.4 132591 118554 10.6 130217 115207 11.5 600000 214575 191332 10.8 211791 188554 11.0 209417 185207 11.6 800000 293775 261332 11.0 290991 258554 11.1 288617 255207 11.6 1000000 372975 331332 11.2 370191 328554 11.2 367817 325207 11.6 2000000 768975 681332 11.4 766191 678554 11.4 763817 675207 11.6 * Percent reduction is for rates only. It does not include the increase in the child tax credit or the reduction of the tax on dividends and capital gains. Regarding the reduction in the marriage penalty, it does not include the increase in the standard deduction for married couples filing jointly but it does include the increase in the upper limit of the 15 percent bracket from $45,200 to $56,800. Taxable income between these values was previously taxed at 27% but is now taxed at 15%. This is the cause of the large spike in the percent of tax reduction between these two incomes. Note: Taxable income is income less deductions and personal exemptions Source: http://www.golombard.com/tax_bracket.html (brackets after 2003 tax cut); http://www.whitehouse.gov/news/reports/taxplan.html (brackets before 2001 tax cut)

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