FROM THE OFFICE OF PUBLIC AFFAIRS

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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 Jobs and Growth Tax Relief Reconciliation Act of 2003. The effects are shown for the Act in 2003.

The average income tax reduction ranges from more than 15 percent for taxpayers with income under $30,000 to about 11 percent for taxpayers with income over $100,000.  The average income tax reduction across all income groups is 11.9 percent.

Because the percentage reduction in income taxes is greatest for families with incomes under $50,000, these families will pay a smaller share of the total income tax burden under the Act than they do under current law (compare the distribution of total individual income taxes under 2003 law and under the Act).

Conversely, families with income of $100,000 or more receive a smaller than average percentage reduction in income taxes so they will pay a larger share of the total income tax burden under the Act than they do under current law.  Under the Act, the share of income taxes paid by families with income of $100,000 or more will rise to 73.3 percent.
 
The table also presents the average individual income taxes paid for the representative income groups under the Jobs and Growth Tax Relief Reconciliation Act of 2003.  Under the Act, those in the lowest income group (under $30,000) will on average receive refundable credits in excess of tax payments of $411 and those in the second lowest income group will pay an average of $1,012 in income tax.  Those earning over $200,000 will on average pay approximately $99,000 in income taxes.

Related Documents:

• Jobs and Growth Tax Relief