How Would the Expiration of the 2001 and 2003 Tax Cuts Affect Individual Taxpayers?
July 23, 2010
With just a week left before Congress leaves town for the August recess, the fate of the 2001 and 2003 tax cuts is up in the air. Treasury Secretary Timothy Geithner yesterday rejected calls by some Democrats — such as U.S. Sen. Kent Conrad (D-N.D.) — to extend the tax cuts for high-income taxpayers.
The Tax Foundation has launched a calculator at www.MyTaxBurden.org, which allows taxpayers to compare their 2011 federal income tax liabilities under three scenarios:
1. If all the Bush tax cuts expire completely at the end of this year;
2. If they're all extended into 2011 or made permanent; and
3. If President Obama's budget is adopted, which includes a combination of expirations and extensions.
Taxpayers can type in basic information — such as filing status, wage income and number of dependents — along with optional more detailed information — such as capital gains and dividend income, state and local taxes paid and other itemized deductions — and determine what their federal income tax burden would be in 2011. Here is a video explaining how the Bush tax cuts calculator works:
For more information, see the Tax Foundation's Frequently Asked Questions on the Expiring 2001 and 2003 Tax Cuts.