| Outline of Major Tax Law Provisions in 2011 under Multiple Scenarios | ||||
| Tax Parameter |
Pre-Bush Tax Policy (1) |
Compromise Tax Policy (2) |
Tax Policy Under congressional Democratic Proposal (3)
|
Tax Policy Under original Republican plan (4) |
|
Ordinary Taxable Income Rates |
15%, 28%, 31%, 36%, 39.6% |
10%, 15%, 25%, 28%, 33%, 35% |
10%, 15%, 25%, 28%, 33%, 36%, 39.6% |
10%, 15%, 25%, 28%, 33%, 35% |
|
Ordinary Taxable Income Brackets |
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|
Standard Deduction |
$5,800 (single); $9,650 (married filing jointly) |
$5,800 (single); $11,600 (married filing jointly) |
$5,800 (single); $11,600 (married filing jointly) |
$5,800 (single); $11,600 (married filing jointly) |
|
Long-Term Capital Gains Rate |
10% (for 15% bracket); 20% rate (for other brackets) |
0% rate (for 10/15% brackets); 15% rate (for other brackets) |
0% (for 10/15% bracket); 15% rate (for 25/28/33% bracket) 20% rate (for top two brackets) |
0% rate (for 10/15% brackets); 15% rate (for other brackets) |
|
Qualified Dividends Rate |
Taxed as ordinary income |
Taxed as capital gains |
Dividends taxed as capital gains until taxable income exceeds $193,800 ($235,150 MFJ), additional dividends taxed as ordinary income |
Taxed as capital gains |
|
Personal Exemption Phaseout Threshold |
$169,550 (single); $254,350 (MFJ) |
No Phaseout |
$203,300 (single); $254,150 (MFJ) |
No Phaseout |
|
Itemized Deduction Phaseout Threshold |
$169,550 (single and MFJ) |
No Phaseout |
$203,300 (single); $254,150 (MFJ) |
No Phaseout |
|
Further Limit on Itemized Deductions |
None |
None |
None |
None |
|
Child Tax Credit (per child) |
$500 |
$1,000 |
$1,000 |
$1,000 |
|
Refundable Child Tax Credit |
Refundable only for families with 3 or more children, with restrictive income requirements |
Refundable to the extent of 15% of AGI in excess of $3,000 |
Refundable to the extent of 15% of AGI in excess of $3,000 |
Refundable to the extent of 15% of AGI in excess of $12,800 |
|
Child and Dependent Care Credit |
Limited to $2,400 ($4,800 for two or more children) in expenses, top credit percentage of 30%, phase-out begins at $10,000 in earned income |
Limited to $3,000 ($6,000 for two or more children) in expenses, top credit percentage of 35%, phase-out begins at $15,000 in earned income |
Limited to $3,000 ($6,000 for two or more children) in expenses, top credit percentage of 35%, phase-out begins at $15,000 in earned income |
Limited to $3,000 ($6,000 for two or more children) in expenses, top credit percentage of 35%, phase-out begins at $15,000 in earned income |
|
Making Work Pay Credit |
None |
None |
None |
|
|
AMT Exemption Level |
$48,450 (single); $74,450 (married filing jointly)* |
$48,450 (single); $74,450 (married filing jointly)
|
$47,450 (single); $72,450 (married filing jointly) |
$48,450 (single); $74,450 (married filing jointly) |
|
AMT 28% Rate Threshold |
$175,000 |
$175,000 |
$175,000 |
$175,000 |
|
AMT Exemption Phaseout Threshold |
$112,500(single); $150,000 (married filing jointly) |
$112,500(single); $150,000 (married filing jointly) |
$112,500(single); $150,000 (married filing jointly) |
$112,500(single); $150,000 (married filing jointly) |
|
EITC |
Click here to see how EITC rules would be affected by these four tax policy scenarios |
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