FROM THE OFFICE OF PUBLIC AFFAIRS

Attached is a table prepared by the Department of the Treasury that shows the distributional effects of the major individual income tax provisions in the President's proposal. The effects are shown for the proposal with all provisions fully phased in.

The share of income tax relief provided to families with incomes under $100,000 is larger than their share of current income taxes paid (compare the first and second columns.) As a result, these families will pay a smaller share of the total income tax burden under the President's proposal than they do under current law.

Conversely, the share of the income tax relief provided to families with incomes of $100,000 or more is smaller than their share of current income taxes paid. As a result, these families will pay a larger share of the total income tax burden under the President's proposal than they do under current law.

The table also presents the average individual income taxes paid for the representative income groups under the President's plan. Those in the lowest income group (under $30,000) will on average receive $457 rebate and those in the second lowest income group will pay an average $993. Those earning over $200,000 will on average pay approximately $104,000 in income taxes.