DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF 

THE “RESTORING EARNINGS TO LIFT INDIVIDUALS AND 

EMPOWER FAMILIES (‘RELIEF’) ACT OF 2001” 

Prepared by the Staff 

of the 

JOINT COMMITTEE ON TAXATION 

May 11, 2001 

JCX-42-01 
DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF

THE "RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (’RELIEF’) ACT 

 Calendar Year 2001

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effec

INCOME FEDERAL UNDER UNDER Prese

CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law 

Millions Percent Billions Percent Billions Percent Perce

Less than $10,000......... -$78 -1.1% $7 0.4% $7 0.4% 8.7%  10,000 to 20,000......... -3451 -13.2% 26 1.5% 23 1.3% 7.5%  20,000 to 30,000......... -6,209 -10.0% 62 3.5% 56 3.3% 13.4 30,000 to 40,000......... -5,747 -6.5% 89 5.1% 83 4.9% 16.1 40,000 to 50,000......... -5,415 -5.3% 102 5.9% 97 5.7% 17.4 50,000 to 75,000......... -11,008 -4.3% 256 14.6% 245 14.4% 19.1 75,000 to 100,000......... -7,649 -3.1% 244 13.9% 236 13.9% 21.7100,000 to 200,000........ -7,934 -1.9% 408 23.3% 400 23.5% 24.2200,000 and over........... -2,198 -0.4% 555 31.7% 553 32.5% 27.8Total, All Taxpayers..... -$49,689 -2.8% $1,748 100.0% $1,698 100.0% 21.4

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes provisions affecting the child credit, individual marginal rates, a 10% bracket, limitation of itemized deduction exemption phaseout, the standard deduction, 15% bracket and EIC for married couples, deductible IRAs, and the AM(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferen [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels.(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes. Individuals who are dependents of other taxpayers and taxpayers with nega excluded from the analysis. Does not include indirect effects.(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) p income attributable to the proposal.

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DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF

THE "RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (’RELIEF’) ACT 

 Calendar Year 2002

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effec

INCOME FEDERAL UNDER UNDER Prese

CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law 

Millions Percent Billions Percent Billions Percent Perce

Less than $10,000......... -$80 -1.1% $7 0.4% $7 0.4% 9.2%  10,000 to 20,000......... -4,177 -15.5% 27 1.5% 23 1.3% 7.6%  20,000 to 30,000......... -7,543 -12.0% 63 3.4% 55 3.1% 13.5 30,000 to 40,000......... -6,934 -7.7% 91 4.9% 84 4.7% 16.1 40,000 to 50,000......... -6,212 -5.8% 106 5.8% 100 5.7% 17.5 50,000 to 75,000......... -13,260 -5.0% 267 14.5% 254 14.4% 19.0 75,000 to 100,000......... -10,227 -4.0% 255 13.9% 245 13.9% 21.7100,000 to 200,000........ -14,415 -3.3% 442 24.1% 427 24.3% 24.2200,000 and over........... -12,268 -2.1% 578 31.5% 566 32.1% 27.9Total, All Taxpayers..... -$75,115 -4.1% $1,836 100.0% $1,761 100.0% 21.5

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes provisions affecting the child credit, individual marginal rates, a 10% bracket, limitation of itemized deduction exemption phaseout, the standard deduction, 15% bracket and EIC for married couples, deductible IRAs, and the AM(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferen [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels.(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes. Individuals who are dependents of other taxpayers and taxpayers with nega excluded from the analysis. Does not include indirect effects.(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) p income attributable to the proposal.

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DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF

THE "RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (’RELIEF’) ACT 

 Calendar Year 2003

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effec

INCOME FEDERAL UNDER UNDER Prese

CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law 

Millions Percent Billions Percent Billions Percent Perce

Less than $10,000......... -$89 -1.1% $8 0.4% $8 0.4% 9.7%  10,000 to 20,000......... -4,194 -15.4% 27 1.4% 23 1.2% 7.6%  20,000 to 30,000......... -7,588 -11.7% 65 3.3% 57 3.1% 13.6 30,000 to 40,000......... -7,041 -7.6% 93 4.8% 86 4.6% 16.0 40,000 to 50,000......... -6,169 -5.7% 108 5.6% 101 5.5% 17.4 50,000 to 75,000......... -13,565 -4.9% 279 14.4% 266 14.3% 18.9 75,000 to 100,000......... -10,553 -4.0% 265 13.7% 255 13.7% 21.7100,000 to 200,000........ -15,487 -3.2% 479 24.8% 464 25.0% 24.2200,000 and over........... -12,926 -2.1% 609 31.5% 596 32.1% 28.1Total, All Taxpayers..... -$77,611 -4.0% $1,933 100.0% $1,855 100.0% 21.5

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes provisions affecting the child credit, individual marginal rates, a 10% bracket, limitation of itemized deduction exemption phaseout, the standard deduction, 15% bracket and EIC for married couples, deductible IRAs, and the AM(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferen [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels.(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes. Individuals who are dependents of other taxpayers and taxpayers with nega excluded from the analysis. Does not include indirect effects.(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) p income attributable to the proposal.

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DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF

THE "RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (’RELIEF’) ACT 

 Calendar Year 2004

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effec

INCOME FEDERAL UNDER UNDER Prese

CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law 

Millions Percent Billions Percent Billions Percent Perce

Less than $10,000......... -$78 -1.0% $8 0.4% $8 0.4% 10.0 10,000 to 20,000......... -4,345 -15.9% 27 1.3% 23 1.2% 7.6%  20,000 to 30,000......... -8,115 -12.3% 66 3.3% 58 3.0% 13.6 30,000 to 40,000......... -7,633 -8.0% 96 4.7% 88 4.5% 16.0 40,000 to 50,000......... -6,671 -6.1% 110 5.4% 103 5.3% 17.4 50,000 to 75,000......... -14,899 -5.2% 288 14.2% 274 14.1% 18.7 75,000 to 100,000......... -11,922 -4.3% 279 13.8% 267 13.7% 21.5100,000 to 200,000........ -17,223 -3.4% 512 25.2% 495 25.5% 24.1200,000 and over........... -13,576 -2.1% 642 31.6% 628 32.3% 28.2Total, All Taxpayers..... -$84,461 -4.2% $2,028 100.0% $1,943 100.0% 21.6

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes provisions affecting the child credit, individual marginal rates, a 10% bracket, limitation of itemized deduction exemption phaseout, the standard deduction, 15% bracket and EIC for married couples, deductible IRAs, and the AM(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferen [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels.(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes. Individuals who are dependents of other taxpayers and taxpayers with nega excluded from the analysis. Does not include indirect effects.(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) p income attributable to the proposal.

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DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF

THE "RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (’RELIEF’) ACT 

 Calendar Year 2005

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effec

INCOME FEDERAL UNDER UNDER Prese

CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law 

Millions Percent Billions Percent Billions Percent Perce

Less than $10,000......... -$80 -1.0% $8 0.4% $8 0.4% 10.1 10,000 to 20,000......... -4,315 -15.7% 28 1.3% 23 1.2% 7.6%  20,000 to 30,000......... -8,042 -11.8% 68 3.2% 60 3.0% 13.7 30,000 to 40,000......... -7,675 -7.9% 98 4.6% 90 4.5% 16.0 40,000 to 50,000......... -6,861 -6.1% 112 5.3% 105 5.2% 17.2 50,000 to 75,000......... -16,891 -5.6% 303 14.2% 286 14.2% 18.7 75,000 to 100,000......... -14,564 -5.1% 287 13.5% 273 13.5% 21.4100,000 to 200,000........ -25,100 -4.6% 547 25.7% 522 25.8% 24.0200,000 and over........... -25,377 -3.7% 678 31.9% 653 32.3% 28.3Total, All Taxpayers..... -$108,904 -5.1% $2,129 100.0% $2,020 100.0% 21.6

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes provisions affecting the child credit, individual marginal rates, a 10% bracket, limitation of itemized deduction exemption phaseout, the standard deduction, 15% bracket and EIC for married couples, deductible IRAs, and the AM(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferen [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels.(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes. Individuals who are dependents of other taxpayers and taxpayers with nega excluded from the analysis. Does not include indirect effects.(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) p income attributable to the proposal.

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DISTRIBUTIONAL EFFECTS OF A CHAIRMAN’S MARK OF

THE "RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (’RELIEF’) ACT 

 Calendar Year 2006

CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effec

INCOME FEDERAL UNDER UNDER Prese

CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law 

Millions Percent Billions Percent Billions Percent Perce

Less than $10,000......... -$82 -1.0% $8 0.4% $8 0.4% 10.4 10,000 to 20,000......... -4,319 -15.5% 28 1.2% 23 1.1% 7.6%  20,000 to 30,000......... -7,958 -11.5% 69 3.1% 61 2.9% 13.7 30,000 to 40,000......... -7,747 -7.8% 99 4.4% 92 4.3% 16.0 40,000 to 50,000......... -7,283 -6.3% 116 5.2% 109 5.1% 17.2 50,000 to 75,000......... -17,514 -5.6% 313 14.0% 296 13.9% 18.6 75,000 to 100,000......... -15,990 -5.4% 297 13.3% 281 13.2% 21.3100,000 to 200,000........ -28,446 -4.8% 588 26.3% 560 26.4% 23.9200,000 and over........... -26,003 -3.6% 719 32.1% 693 32.6% 28.3Total, All Taxpayers..... -$115,340 -5.2% $2,238 100.0% $2,123 100.0% 21.7

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes provisions affecting the child credit, individual marginal rates, a 10% bracket, limitation of itemized deduction exemption phaseout, the standard deduction, 15% bracket and EIC for married couples, deductible IRAs, and the AM(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferen [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels.(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes. Individuals who are dependents of other taxpayers and taxpayers with nega excluded from the analysis. Does not include indirect effects.(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) p income attributable to the proposal.

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