(Archived Content)
In 2003, 92 million taxpayers would receive, on average, a tax cut of $1,083 under the economic growth plan.
69 million women would see their taxes decline, on average, by $1,289.
46 million married couples would receive average tax cuts of $1,716.
34 million families with children would benefit from an average tax cut of $1,473.
6 million single women with children would receive an average tax cut of $541.
13 million elderly taxpayers would receive an average tax cut of $1,384.
23 million small business owners would receive tax cuts averaging $2,042.
3 million individuals and families would have their income tax liability completely eliminated by the Act.
Each of the provision in the economic growth plan will benefit millions of taxpayers.
Accelerating the 2004 and 2006 rate cuts in 2003 would provide 28 million taxpayers with an average tax cut of $1,100.
Accelerating the expansion of the 10 percent rate bracket would reduce taxes for 69 million taxpayers, on average, by $75.
Enacting marriage penalty relief in 2003 would reduce taxes for 35 million married couples by an average of $574.
Increasing the child tax credit to $1,000 in 2003 would provide 26 million families with an average tax cut of $623.
If the tax on dividend income was eliminated, 26 million taxpayers with dividend income would receive an average tax cut of $704. Among those with tax cuts would be 7 million elderly taxpayers whose taxes would decline, on average, by $1,252.
Accelerating the reduction in the top marginal rate scheduled to take effect in 2006 (to 35%) to 2003 would help small businesses.
Owners of flow-through entities, including small business owners and entrepreneurs, comprise more than two-thirds (about 500,000) of the 750,000 tax returns that would benefit from accelerating the reduction in the top tax bracket scheduled for 2006 to 2003.
These small business owners would receive 79% (about $10.4 billion) of the $13.3 billion in tax relief from accelerating the reduction in the top tax bracket to 35% from 2006 to 2003.
Background
This analysis is based on the following provisions:
Acceleration of the 2004 and 2006 rate cuts to 2003.
Reduction in marriage penalties through acceleration of increases in standard deduction from 2009 to 2003 and width of 15 percent rate bracket for joint filers from 2008 to 2003.
Acceleration of the increase in the width of 10 percent rate bracket for single and joint filers from 2008 to 2003.
Acceleration of the increase to $1,000 in the child tax credit from 2010 to 2003 (except for advanced rebate).
100 percent dividend exclusion.
An increase in the alternative minimum tax (AMT) exemption level.
Office of Tax Policy
January 6, 2003