DISTRIBUTIONAL EFFECTS OF THE

CONFERENCE AGREEMENT FOR H.R. 2488

Prepared by the Staff 

of the 

JOINT COMMITTEE ON TAXATION

August 5, 1999

JCX-62-99
DISTRIBUTIONAL EFFECTS OF THE

CONFERENCE AGREEMENT FOR H.R.2488

Calendar Year 2000

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)

FEDERAL UNDER UNDER Present

TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

... -$7 -0.1% $6 0.4% $6 0.4% 6.5% 6.5%

.... -69 -0.2% 32 2.1% 32 2.1% 8.1% 8.1%

.... -114 -0.1% 81 5.3% 81 5.2% 15.4% 15.4%

.... -157 -0.2% 102 6.7% 102 6.6% 17.8% 17.8%.... -114 -0.1% 120 7.9% 119 7.8% 19.6% 19.5%.... 179 0.1% 270 17.8% 270 17.6% 21.6% 21.5%

.... 738 0.3% 221 14.5% 221 14.4% 24.2% 24.0%.... 2,917 1.0% 304 20.1% 307 20.0% 26.3% 26.1%

.... 13,069 3.4% 382 25.2% 395 25.8% 29.0% 28.1%

.... $16,441 1.1% $1,518 100.0% $1,534 100.0% 22.2% 22.0%

tee on Taxation

total due to rounding.

------------------------

al (15% rate) rate reduction, dependent care credit expansion, AMT credit limitation repeal, deductible IRA provisions,

st deduction, elderly caretaker exemption, capital gains, and self-employed health insurance deduction. 

pt used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt 

yer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation, 

ial security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

me of U.S. citizens living abroad. Categories are measured at 1999 levels.

equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees), 

attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax. 

e dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

ate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional 

e to the proposal.

Page 1 of 5
DISTRIBUTIONAL EFFECTS OF THE

CONFERENCE AGREEMENT FOR H.R.2488

Calendar Year 2001

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)

FEDERAL UNDER UNDER Present

TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

... -$21 -0.3% $7 0.4% $6 0.4% 6.8% 6.8%

.... -406 -1.2% 33 2.1% 32 2.1% 8.0% 7.9%

.... -1,194 -1.4% 82 5.2% 81 5.2% 15.4% 15.1%

.... -1,823 -1.7% 105 6.7% 103 6.6% 17.8% 17.5%.... -1,889 -1.6% 121 7.7% 119 7.7% 19.4% 19.1%.... -4,704 -1.7% 280 17.8% 275 17.8% 21.5% 21.1%.... -3,756 -1.6% 232 14.8% 228 14.7% 24.1% 23.6%.... -3,293 -1.0% 319 20.3% 316 20.4% 26.3% 25.8%

.... -3,713 -0.9% 392 25.0% 389 25.1% 29.1% 28.0%

.... -$20,800 -1.3% $1,571 100.0% $1,550 100.0% 22.2% 21.7%

tee on Taxation

total due to rounding.

------------------------

al (15% rate) rate reduction, dependent care credit expansion, AMT credit limitation repeal, deductible IRA provisions,

st deduction, elderly caretaker exemption, capital gains, and self-employed health insurance deduction. 

pt used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt 

yer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation, 

ial security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

me of U.S. citizens living abroad. Categories are measured at 1999 levels.

equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees), 

attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax. 

e dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

ate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional 

e to the proposal.

Page 2 of 5
DISTRIBUTIONAL EFFECTS OF THE

CONFERENCE AGREEMENT FOR H.R.2488

Calendar Year 2002

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)

FEDERAL UNDER UNDER Present

TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

... -$24 -0.4% $7 0.4% $7 0.4% 7.0% 6.9%

.... -440 -1.3% 34 2.1% 33 2.1% 8.1% 8.0%

.... -1,448 -1.7% 85 5.2% 84 5.2% 15.4% 15.1%

.... -2,224 -2.0% 109 6.6% 106 6.6% 17.7% 17.3%.... -2,201 -1.8% 123 7.5% 121 7.5% 19.3% 19.0%.... -5,432 -1.9% 290 17.8% 285 17.7% 21.4% 20.9%.... -4,325 -1.8% 241 14.7% 236 14.7% 24.0% 23.5%.... -3,799 -1.1% 339 20.8% 336 20.8% 26.3% 25.7%

.... -4,932 -1.2% 408 24.9% 403 25.0% 29.1% 27.6%

.... -$24,826 -1.5% $1,635 100.0% $1,610 100.0% 22.2% 21.6%

tee on Taxation

total due to rounding.

------------------------

al (15% rate) rate reduction, dependent care credit expansion, AMT credit limitation repeal, deductible IRA provisions,

st deduction, elderly caretaker exemption, capital gains, and self-employed health insurance deduction. 

pt used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt 

yer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation, 

ial security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

me of U.S. citizens living abroad. Categories are measured at 1999 levels.

equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees), 

attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax. 

e dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

ate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional 

e to the proposal.

Page 3 of 5
DISTRIBUTIONAL EFFECTS OF THE

CONFERENCE AGREEMENT FOR H.R.2488

Calendar Year 2003

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)

FEDERAL UNDER UNDER Present

TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

... -$35 -0.5% $7 0.4% $7 0.4% 7.2% 7.1%

.... -770 -2.2% 34 2.0% 34 2.0% 8.1% 7.9%

.... -2,484 -2.8% 88 5.1% 85 5.1% 15.3% 14.9%

.... -3,734 -3.3% 113 6.6% 109 6.5% 17.6% 17.0%.... -3,964 -3.1% 127 7.4% 123 7.4% 19.3% 18.6%.... -9,366 -3.1% 301 17.7% 292 17.5% 21.3% 20.5%.... -7,240 -2.8% 254 14.9% 247 14.8% 23.9% 23.1%.... -5,864 -1.6% 356 20.9% 351 21.1% 26.3% 25.5%

.... -5,561 -1.3% 423 24.8% 417 25.1% 29.2% 27.3%

.... -$39,019 -2.3% $1,703 100.0% $1,664 100.0% 22.2% 21.4%

tee on Taxation

total due to rounding.

------------------------

al (15% rate) rate reduction, dependent care credit expansion, AMT credit limitation repeal, deductible IRA provisions,

st deduction, elderly caretaker exemption, capital gains, and self-employed health insurance deduction. 

pt used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt 

yer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation, 

ial security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

me of U.S. citizens living abroad. Categories are measured at 1999 levels.

equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees), 

attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax. 

e dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

ate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional 

e to the proposal.

Page 4 of 5
DISTRIBUTIONAL EFFECTS OF THE

CONFERENCE AGREEMENT FOR H.R.2488

Calendar Year 2004

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)

FEDERAL UNDER UNDER Present

TAXES (3) PRESENT LAW PROPOSAL Law Proposal

Millions Percent Billions Percent Billions Percent Percent Percent

... -$36 -0.5% $7 0.4% $7 0.4% 7.1% 7.0%

.... -807 -2.3% 35 2.0% 34 2.0% 8.1% 7.9%

.... -2,734 -3.0% 90 5.0% 87 5.0% 15.2% 14.8%

.... -4,022 -3.5% 116 6.5% 112 6.4% 17.6% 17.0%.... -4,454 -3.4% 130 7.3% 126 7.2% 19.3% 18.6%.... -10,452 -3.3% 314 17.6% 304 17.5% 21.2% 20.4%

.... -8,475 -3.2% 269 15.1% 260 15.0% 23.9% 23.0%

.... -6,655 -1.8% 377 21.1% 370 21.3% 26.2% 25.3%

.... -6,092 -1.4% 445 25.0% 439 25.2% 29.2% 27.1%

.... -$43,726 -2.5% $1,784 100.0% $1,740 100.0% 22.2% 21.3%

tee on Taxation

total due to rounding.

------------------------

al (15% rate) rate reduction, dependent care credit expansion, AMT credit limitation repeal, deductible IRA provisions,

st deduction, elderly caretaker exemption, capital gains, and self-employed health insurance deduction. 

pt used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt 

yer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation, 

ial security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and

me of U.S. citizens living abroad. Categories are measured at 1999 levels.

equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees), 

attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax. 

e dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

ate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional 

e to the proposal.

Page 5 of 5