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JCT Estimates Revenue Effects of Income Tax Rate Cut Bill

MAR. 6, 2001

JCX-7-01

DATED MAR. 6, 2001
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Joint Committee on Taxation
  • Cross-Reference
    For related news coverage, see Doc 2001-6264 (5 original pages) [PDF], 2001

    TNT 42-1 Database 'Tax Notes Today 2001', View '(Number', or H&D, Mar. 2, 2001, p. 2837.
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    legislation, tax
    budget, federal, revenue estimates
    budget, federal
    rates, individual
    rates, individual, effective
    rates, marginal
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2001-6626 (1 original page)
  • Tax Analysts Electronic Citation
    2001 TNT 45-8
Citations: JCX-7-01

 

=============== SUMMARY ===============

 

The Joint Committee on Taxation has estimated (JCX-7-01) the revenue effects of H.R. 3, the income tax rate cut bill that the House Ways and Means Committee approved on March 1. (For related news coverage, see Doc 2001-6264 (5 original pages) [PDF], 2001 TNT 42-1 Database 'Tax Notes Today 2001', View '(Number', or H&D, Mar. 2, 2001, p. 2837.)

The JCT estimates that the revenue cost of H.R. 3, the "Economic Growth and Tax Relief Act of 2001," would be $958 billion over 10 years. Provisions to create a new 10 percent income tax bracket by 2006 would cost $383 billion by 2011, while provisions to reduce other income tax rates and repeal the alternative minimum tax offset to refundable tax credits would cost $575 billion over the same period.

 

=============== FULL TEXT ===============

 

                     JOINT COMMITTEE ON TAXATION

 

 

                            March 6, 2001

 

 

                              JCX-7-01

 

 

                ESTIMATED REVENUE EFFECTS OF H.R. 3,

 

          THE "ECONOMIC GROWTH AND TAX RELIEF ACT OF 2001,"

 

           AS REPORTED BY THE COMMITTEE ON WAYS AND MEANS

 

 

                      Fiscal Years 2001 -- 2011

 

 

                        [Billions of Dollars]

 

______________________________________________________________________

 

Provision/

 

Effective                             2001   2002   2003   2004   2005

 

______________________________________________________________________

 

1.Create new bracket for first

 

  $6,000 of taxable income for

 

  singles, first $10,000 for heads

 

  of households, and first $12,000

 

  for married couples; no indexing

 

  bracket for inflation until 2007;

 

  rate set at 12% in 2001 and

 

  2002, 11% in 2003 through 2005,

 

  and 10% in 2006

 

  tyba 12/31/00                          -5.6  -35.7 -30.0 -32.4 -32.3

 

 

2.Reduce the various income tax

 

  rates (39.6% rate reduced to 38%

 

  in 2002, 37% in 2003, 36% in 2004,

 

  35% in 2005 and 33% in 2006; 36%

 

  rate reduced to 35% in 2002 and

 

  2003, 34% in 2004 and 2005, and 33%

 

  in 2006; 31% rate reduced to 30%

 

  in 2002, 29% in 2003, 28% in 2004,

 

  27% in 2005, and 25% in 2006; and

 

  28% rate reduced to 27% in 2002

 

  and 2003, 26% in 2004 and 2005,

 

  and 25% in 2006); repeal the AMT

 

  offset to refundable tax credits

 

  tyba 12/31/01                           1  -13.4 -24.4 -38.4 -48.5

 

 

3.Transfer to Social Security and

 

  Medicare trust funds

 

  tyba 12/31/00                          - - - - No Revenue Effect - -

 

______________________________________________________________________

 

NET TOTAL 2                            -5.6  -49.1 -54.4 -70.8 -80.8

 

______________________________________________________________________

 

                          [table continued]

 

______________________________________________________________________

 

Provision

 

Effective                             2006      2007     2008     2009

 

______________________________________________________________________

 

1.Create new bracket for first

 

  $6,000 of taxable income for

 

  singles, first $10,000 for heads

 

  of households, and first $12,000

 

  for married couples; no indexing

 

  bracket for inflation until 2007;

 

  rate set at 12% in 2001 and

 

  2002, 11% in 2003 through 2005,

 

  and 10% in 2006

 

  tyba 12/31/00                      -37.9     -40.7    -41.3    -41.8

 

 

2.Reduce the various income tax

 

  rates (39.6% rate reduced to 38%

 

  in 2002, 37% in 2003, 36% in 2004,

 

  35% in 2005 and 33% in 2006; 36%

 

  rate reduced to 35% in 2002 and

 

  2003, 34% in 2004 and 2005, and 33%

 

  in 2006; 31% rate reduced to 30%

 

  in 2002, 29% in 2003, 28% in 2004,

 

  27% in 2005, and 25% in 2006; and

 

  28% rate reduced to 27% in 2002

 

  and 2003, 26% in 2004 and 2005,

 

  and 25% in 2006); repeal the AMT

 

  offset to refundable tax credits

 

  tyba 12/31/01                      -65.2     -72.8    -74.7    -76.9

 

 

3.Transfer to Social Security and

 

  Medicare trust funds

 

  tyba 12/31/00                        - - - - No Revenue Effect - -

 

______________________________________________________________________

 

 

NET TOTAL 2                        -103.1   -113.5   -116.0   -118.7

 

______________________________________________________________________

 

                          [table continued]

 

______________________________________________________________________

 

Provision

 

Effective                             2010      2011  2001-06  2001-11

 

______________________________________________________________________

 

1.Create new bracket for first

 

  $6,000 of taxable income for

 

  singles, first $10,000 for heads

 

  of households, and first $12,000

 

  for married couples; no indexing

 

  bracket for inflation until 2007;

 

  rate set at 12% in 2001 and

 

  2002, 11% in 2003 through 2005,

 

  and 10% in 2006

 

  tyba 12/31/00                      -42.4     -43.0   -174.0   -383.2

 

 

2.Reduce the various income tax

 

  rates (39.6% rate reduced to 38%

 

  in 2002, 37% in 2003, 36% in 2004,

 

  35% in 2005 and 33% in 2006; 36%

 

  rate reduced to 35% in 2002 and

 

  2003, 34% in 2004 and 2005, and 33%

 

  in 2006; 31% rate reduced to 30%

 

  in 2002, 29% in 2003, 28% in 2004,

 

  27% in 2005, and 25% in 2006; and

 

  28% rate reduced to 27% in 2002

 

  and 2003, 26% in 2004 and 2005,

 

  and 25% in 2006); repeal the AMT

 

  offset to refundable tax credits

 

  tyba 12/31/01                      -79.3     -81.7   -189.8   -575.1

 

 

3.Transfer to Social Security and

 

  Medicare trust funds

 

  tyba 12/31/00                      - - - - No Revenue Effect - - -

 

______________________________________________________________________

 

NET TOTAL 2                       -121.7    -124.7   -363.8   -958.3

 

______________________________________________________________________

 

Joint Committee on Taxation

 

 

NOTE: Details may not add to totals due to rounding.

 

 

Legend for "Effective" column:  tyba = taxable years beginning after

 

FOOTNOTES

 

 

1 Loss of less than $50 million.

2 Includes the following effect on fiscal year outlays

2001   2002   2003   2004   2005   2006      2007     2008     2009

 

______________________________________________________________________

 

3     0.7    0.7    0.9    1.0    1.0       1.3      1.3      1.3

 

 

                          [table continued]

 

 

                  2010      2011  2001-06  2001-11

 

                  ________________________________

 

                   1.3       1.3      4.2     10.5

 

 

3 Less than $50 million.

 

END OF FOOTNOTES
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Joint Committee on Taxation
  • Cross-Reference
    For related news coverage, see Doc 2001-6264 (5 original pages) [PDF], 2001

    TNT 42-1 Database 'Tax Notes Today 2001', View '(Number', or H&D, Mar. 2, 2001, p. 2837.
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    legislation, tax
    budget, federal, revenue estimates
    budget, federal
    rates, individual
    rates, individual, effective
    rates, marginal
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2001-6626 (1 original page)
  • Tax Analysts Electronic Citation
    2001 TNT 45-8
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