President Obama proposed in his budget last February that Congress allow some of the Bush tax cuts to expire while extending others into 2011. He introduces a few reforms of his own, including an extension of the making-work-pay credit, which Congress seems ambivalent about extending but which we include, as well the extension of other measures introduced in the 2009 stimulus bill. He also changes the tax bracket structure, raising the ceiling of the 28% bracket to include more taxpayers. This column shows how much income tax you will owe in 2011 under this scenario. For detailed information visit this page.

Note: The President's budget includes a specific AMT patch which is slightly different from the patch proposed by Republicans that we use in the other three scenarios. His patch indexes AMT parameters for inflation, whereas the Republican proposal simply sets specific parameters for the next ten years.