Civic Report No. 43 August 2004


The $36 Billion Bonus: New York’s Gains from Federal Tax Cuts

Table 1: Impact of 2001 and 2003 Tax Cuts on Hypothetical Taxpayers

 

 

Total Taxes

Change in Taxes

Sample Taxpayer

Income

Pre-2001 Law

2003 Law

Total

Rate

Single parent of
2 children < 17

$ 35,000

$  1,783

$      283

$  1,500

84%

Married couple,
2 children < 17

$  62,800*

$  4,864

$  3,149

$  1,715

35%

Married couple,
2 children < 17

$85,300**

$  8,627

$    5,820

$  2,807

33%

Married couple,
3 children (2 < 17)

$135,000

$ 21,060

$ 17,680

$  3,380

16%

Married couple,
2 children

$430,000

$ 98,115

$ 86,660

$ 11,455

12%

Single person
(renter)

$  50,000

$  7,998

$    7,250

$      748

 9%

Single person
(homeowner)

$100,000

$ 18,572

$ 16,719

$  1,853

10%

* Median for four-person families in New York City
** Nassau and Suffolk County median for four-person families
NOTE: All taxpayers earning above $50,000 in these examples are itemizers.

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