#D-97-43

31-Jul-97
DISTRIBUTIONAL EFFECTS OF THE
CONFERENCE AGREEMENT ON THE REVENUE PROVISIONS.
OF H.R. 2014 (1)
Calendar Year 2000
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000. -$40 -0.8% $5 0.4% $5 0.4% 5.8% 5.7%
10,000 to 20,000. -2,143 6.7% 32 2.3% 30 2.2% 8.3% 7.7%
20,000 to 30,000. -4,075 5.5% 75 5.4% 71 5.3% 13.6% 12.8%
30,000 to 40,000. -5,189 4.9% 105 7.7% 100 7.5% 16.4% 15.6%
40,000 to 50,000. -4,152 3.8% 110 8.1% 106 7.9% 17.5% 16.8%
50,000 to 75,000. 78,197 -3.1% 267 19.4% 258 19.3% 19.7% 19.1%
75,000 to 100,000.. -4,482 -2.1% 218 15.9% 213 15.9% 22.8% 22.3%
100,000 to 200,000. -1,096 -0.4% 280 20.4% 278 20.8% 25.0% 24.7%
200,000 and over... -2,439 -0.9% 279 20.4% 277 20.7% 30.2% 28.7%
Total, All Taxpayers. -$31,812 2.3% $1,371 100.0% $1,339 100.0% 20.6% 20.0%

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.

(1) Includes child credit, capital gains reform, education incentives, IRA expansion, self-employed health deduction increase, EIC reduction,
individual AMT depreciation conformity and relief for farmers, and air travel taxes attributable to personal travel. Does not include
increase in the cigarette excise tax.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 4 of 6


#D-97-43

31-Jul-97
DISTRIBUTIONAL EFFECTS OF THE
CONFERENCE AGREEMENT ON THE REVENUE PROVISIONS
OF H.R. 2014 (1)
Calendar Year 1999
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal

: Millions Percent Billions Percent Billions Percent Percent Percent

Less than $10,000. -$33 -0.7% $5 0.4% $5 0.4% 5.7% 5.6%

10,000 to 20,000. -2,051 6.5% 32 24% . 29 2.3% 8.3% 7.8%
20,000 to -3,955 -5.5% 72 5.5% 69 5.4% 13.6% 12.9%
30,000 to -5,088 -5.0% 101 7.7% 96 7.5% 16.5% 15.6%
40,000 to 4,115 -3.9% 107 8.1% 102 8.0% 17.5% 16.8%
50,000 to . -8,255 “3.2% 259 19.8% 251 19.6% 20.0% 19.3%
75,000 to 100,000. -4,358 -2.1% 204 15.6% 200 15.6% 23.0% 22.4%
100,000 to 200,000. -1,101 -0.4% 264 20.2% 263 20.6% 25.1% 24.7%
200,000 and over... -1,893 -0.7% 264 20.2% 262 20.5% 30.2% 28.7%
Total, All Taxpayers. -$30,850 2.4% $1,309 100.0% $1,278 100.0% 20.6% 20.0%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1): Includes child credit, capital gains reform, education incentives, IRA expansion, self-employed health deduction increase, EIC reduction,
individual AMT depreciation conformity and relief for farmers, and air travel taxes attributable to personal travel. Does not include
increase in the cigarette excise tax.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

{5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the ElC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 3 of 6



#D-97-43

31-Jul-97
DISTRIBUTIONAL EFFECTS OF THE
CONFERENCE AGREEMENT ON THE REVENUE PROVISIONS
OF H.R. 2014 (1)
Calendar Year 2001
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000. -$52 -1.0% $5 0.4% $5 0.4% 5.8% 5.8%
10,000 to 20,000. -2,395 -74% 32 2.2% 30 2.1% 8.3% 7.7%
20,000 to 30,000. -4,359 5.6% 7 5.4% 73 5.2% 13.5% 12.8%
30,000 to 40,000. 5,359 4.9% 109 7.6% 104 7A% 16.4% 15.6%
40,000 to 50,000. -4,324 -3.8% 114 8.0% 110 7.8% 17.4% 16.7%
50,000 to 75,000. -8,116 -3.0% 274 19.1% 266 18.9% 19.6% 18.9%
75,000 to 100,000.. -4,533 -1.9% 235 16.4% 230 16.4% 22.8% 22.2%
100,000 to 200,000. -570 0.2% 295 20.5% 294 20.9% 25.0% 24.7%
200,000 and over... -1,162 -0.4% 294 20.5% 293 20.8% 30.3% 28.7%
Total, All Taxpayers. -$30,870 2.1% $1,437 100.0% $1,406 100.0% 20.6% 20.0%

Source: Joirt Committee on Taxation
Detail may not add to total due to rounding.

(1), includes child credit, capital gains reform, education incentives, IRA expansion, self-employed health deduction increase, EIC reduction,
individual AMT depreciation conformity and relief for farmers, and air travel taxes attributable to personal travel. Does not include
increase in the cigarette excise tax.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 5 of 6



DISTRIBUTIONAL EFFECTS OF THE CONFERENCE AGREEMENT ON THE
REVENUE RECONCILIATION PROVISIONS OF H.R. 2014,
THE "TAXPAYER RELIEF ACT OF 1997"

Prepared by the Staff
of the

JOINT COMMITTEE ON TAXATION

September 4, 1997

JCX-41-97



#D-97-43

31-Jul-97
DISTRIBUTIONAL EFFECTS OF THE
CONFERENCE AGREEMENT ON THE REVENUE PROVISIONS
OF H.R. 2014 (1)
Calendar Year 2002
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present.
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000.. -$70 -1.3% $5 0.4% $5 0.4% 5.9% 5.8%
10,000 to 20,000. -2,702 8.3% 33 2.2% 30 2.0% 8.3% 7.6%
20,000 to 30,000. -4,748 6.0% 80 5.3% 75 5.1% 13.5% 12.7%
30,000 to 40,000. 5,646 5.0% 114 75% 108 7.3% 16.4% 15.5%
40,000 to 50,000. -4,537 -3.8% 120 7.9% 115 7.8% 17.3% 16.7%
50,000 to 75,000.. -8,260 -2.9% 284 18.9% 276 18.7% 19.3% 18.8%
75,000 to 100,000. ~4,696 -1.9% 248 16.5% 243 16.5% 22.7% 22.2%
100,000 to 200,000. -614 -0.2% 312 20.8% 312 21.2% 25.0% 24.7%
200,000 and over... -2,019 -0.7% 310 20.6% 308 20.9% 30.3% 28.7%
Total, All Taxpayers. ~$33,293 2.2% $1,505 100.0%. $1,471 100.0% 20.6% 20.0%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes child credit, capital gains reform, education incentives, IRA expansion, self-employed health deduction increase, EIC reduction,
individual AMT depreciation conformity and relief for farmers, and air travel taxes attributable to personal travel. Does not include
increase in the cigarette excise tax.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 6 of 6



#D-97-43

31-Jul-97
DISTRIBUTIONAL EFFECTS OF THE
CONFERENCE AGREEMENT ON THE REVENUE PROVISIONS
OF H.R. 2014 (1)
Calendar Year 1997
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000. $14 0.3% $5 0.4% $5 0.4% 5.4% 5.4%
10,000 to 20,000.. -15 (5) 31 2.6% 31 2.6% 8.5% 8.5%
20,000 to 30,000. 8 (5) 68 5.7% 68 5.6% 13.8% 13.8%
30,000 to 40,000. 13 (5) 95 7.9% 95 7.9% 16.6% 16.6%
40,000 to 50,000. 42 (5) 100 8.3% 100 8.2% 17.9% 17.8%
50,000 to 75,000.. 376 0.2% 243 20.2% 243 20.1% 20.3% 20.3%
75,000 to 100,000. 667 0.4% 183 15.2% 184 15.2% 23.1% 23.0%
100,000 to 200,000. 1,580 0.7% 237 19.7% 239 19.7% 25.2% 24.9%
200,000 and over... 5,642 2.4% 240 20.0% 246 20.3% 30.2% 28.3%
Total, All Taxpayers. $8,311 0.7% $1,202 100.0% $1,211 100.0% 20.7% 20.5%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes child credit, capital gains reform, education incentives, IRA expansion, self-employed health deduction increase, EIC reduction,
individual AMT depreciation conformity and relief for farmers, and air travel taxes attributable to personal travel. Does not include
increase in the cigarette excise tax.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
{8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the ElC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

(5) Less than 0.05%.
Page 1 of 6



#D-97-43

31-Jul-97
DISTRIBUTIONAL EFFECTS OF THE
CONFERENCE AGREEMENT ON THE REVENUE PROVISIONS
OF H.R. 2014 (1)
Calendar Year 1998
CHANGE IN FEDERAL TAXES (3) FEDERAL TAXES (3) Effective Tax Rate (4)
INCOME FEDERAL UNDER UNDER Present
CATEGORY (2) TAXES (3) PRESENT LAW PROPOSAL Law Proposal
Millions Percent Billions Percent Billions Percent Percent Percent
Less than $10,000. -$26 0.5% $5 0.4% $5 0.4% 5.4% 5.4%
10,000 to 20,000. -1,870 5.9% 31 2.5% 30 2.4% 8.5% 7.9%
20,000 to 30,000. 3,477 4.9% 70 5.6% 67 5.4% 13.7% 13.0%
30,000 to 40,000.. -4,244 4.3% 98 7.8% 93 7.6% 16.5% 15.8%
40,000 to 50,000. -3,372 -3.3% 103 8.2% 99 8.1% 17.7% 17.1%
50,000 to 75,000.. -6,628 +2.6% 251 20.0% 244 19.9% 20.2% 19.6%
75,000 to 100,000.. -3,242 -1.7% 193 15.4% 189 15.4% 23.1% 22.6%
100,000 to 200,000. -178 0.1% 251 20.0% 251 20.4% 25.1% 24.8%
200,000 and over.... 1,076 0.4% 251 20.0% 252 20.5% 30.2% 28.6%
Total, All Taxpayers. -$21,961 -1.8% $1,253 100.0% $1,231 100.0% 20.7% 20.1%

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(4) Includes child credit, capital gains reform, education incentives, IRA expansion, self-employed health deduction increase, EIC reduction,
individual AMT depreciation conformity and relief for farmers, and air travel taxes attrioutable to personal travel. Does not include
increase in the cigarette excise tax.

(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt
interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker's compensation,

[5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, and
[8] excluded income of U.S. citizens living abroad. Categories are measured at 1997 levels.

(3) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to employees),
and excise taxes (attributed to consumers). Corporate income tax is not included due to uncertainty concerning the incidence of the tax.
Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.

(4) The effective tax rate is equal to Federal taxes described in footnote (3) divided by: income described in footnote (2) plus additional
income attributable to the proposal.

Page 2 of 6