The Tax Foundation

Outline of Major Tax Law Provisions in 2011 under Multiple Scenarios

Tax Parameter

 Pre-Bush Tax Policy

Bush Tax Policy

Tax Policy Under
Pres. Obama's
Proposed Budget

Tax Policy Under
House Democratic
Proposal

Ordinary Taxable Income Rates

15%, 28%, 31%, 36%, 39.6%

10%, 15%, 25%, 28%, 33%, 35%

10%, 15%, 25%, 28%, 36%, 39.6%

10%, 15%, 25%, 28%, 33%, 36%, 39.6%

Ordinary Taxable Income Brackets

Click here for a more detailed breakdown of tax brackets.

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% bracket) 20% rate (for top two brackets)

0% (for 10/15% bracket); 15% rate (for 25/28/33% bracket) 20% rate (for top two brackets)

Qualified Dividends Rate

Taxed as Ordinary Income

0% rate (for 10/15% brackets); 15% rate (for other brackets)

0% (for 10/15% bracket); 15% rate (for 25/28% bracket) 20% rate (for top two brackets)

0% (for 10/15% bracket); 15% rate (for 25/28/33%bracket) 20% rate (for top two brackets)

Personal Exemption Phase-out Threshold

$169,550 (single); $254,350 (MFJ)

No Phaseout

$203,300 (single); $254,150 (MFJ)

$203,300 (single); $254,150 (MFJ)

Itemized Deduction Phase-out Threshold

$169,550 (single and MFJ)

No Phaseout

$203,300 (single); $254,150 (MFJ)

$203,300 (single); $254,150 (MFJ)

Further Limit on Itemized Deductions

None

None

Max tax value limited to benefit received in the 28% income tax bracket

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 $12,800

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

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

Maximum of $400 (single); $800 (joint filers); begins to phase out for those with income over $75,000 ($150,000 for joint filers)

None

AMT Exemption Level

$48,450 (single); $74,450 (married filing jointly)*

$48,450 (single); $74,450 (married filing jointly)*

$47,450 (single); $72,100 (married filing jointly)*

$48,450 (single); $74,450 (married filing jointly)*

AMT 28% Rate Threshold

$175,000

$175,000

$177,900

$175,000

AMT Exemption Phase-out Threshold

$112,500 (single); $150,000 (married filing jointly)

$112,500 (single); $150,000 (married filing jointly)

$114,350 (single); $152,450 (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

Estate Tax Rate

55%

0% (Congressional Republicans plan: 35%)

45%

45%

Estate Tax Exemption

$1 Million ($2 Million for a married couple)

N/A (Congressional Republicans plan: $5 Million [$10 Million for a married couple])

$3.5 Million

$7 Million

*AMT parameters are raised on a year-to-year basis by Congress - this is called an AMT "patch."

We assume an identical AMT patch for all scenarios.