Income: $35,000
Status: married, two children under age 17Old taxes: $0 taxes paid; $2,900 received from government
New taxes: $0 taxes paid; $4,100 received from government
Difference: $1,200 more from the government
The $400 Making Work Pay tax credit would apply even to households that paid no income tax or already received payments from the government. An adjustment to the earned income tax credit for married couples would mean that a family of four earning $35,000 could receive $4,100 in income support.
Income: $50,000
Status: single, no childrenOld taxes: $6,400
New taxes: $6,000
Difference: $400 less in taxes
The big change for single people earning up to $75,000 would be receiving $400 from the tax cut in the economic stimulus plan. The average single person and average family both fall in this range. For couples earning up to $150,000, the tax cut is $800.
Income: $125,000
Status: single, no childrenOld taxes: $21,400
New taxes: $21,400
Difference: $0
The main Obama tax provisions would not affect taxes paid by individuals earning between $100,000 and $125,000 (or couples earning between $200,000 and $250,000).
Income: $150,000
Status: married, one child under 17, one in collegeOld taxes: $22,300
New taxes: $15,500
Difference: $6,800 less in taxes
Without a fix to the alternative minimum tax, this family might get hit. In addition to still being eligible for the Making Work Pay credit, this family could save money from the stimulus plan's American Opportunity Tax Credit (.pdf file), a tax break for the cost of higher education.
Income: $300,000
Status: married, two children under 17Old taxes: $59,100
New taxes: $60,200
Difference: $1,100 more in taxes
This well-to-do family likely would get hit by the alternative minimum tax, but less so under Obama's budget than under current law. It would still see its taxes rise from an increase in tax rates for those earning above $250,000 and from new limits on itemized deductions and personal exemptions.
Income: $500,000
Status: single, no childrenOld taxes: $121,500
New taxes: $140,700
Difference: $19,200 more in taxes
The single and very successful would be hit by a hefty increase. The increased tax rate would cost this person $7,800 more a year. The restoration of limits on itemized deductions and personal exemptions would cost $3,200 extra, and the limit on tax benefits for itemized deductions would total an additional $8,200.
Income: $500,000
Status: married, two children under 17Old taxes: $120,400
New taxes: $131,700
Difference: $11,300 more in taxes
The doctors next door and their kids currently would get hit by the alternative minimum tax. The increased tax rates plus limits to itemized deductions and tax benefits would mean this family could avoid the AMT. But its taxes still would go up.
Income: $1 million
Status: married, two children under 17Old taxes: $256,900
New taxes: $310,000
Difference: $53,100 more in taxes
Only about 1% of married people filing jointly have an income this high, according to the Internal Revenue Service's Statistics of Income division. Someone earning $1 million a year would see a big tax increase under the Obama plan, paying an additional $25,400 from higher tax rates and an estimated $27,700 from the limitations on itemized deductions and personal exemptions.
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