February 12, 2001 11:48 AM | Permalink | 
Click here to see this analysis in PDF format.
President George W. Bush has proposed a tax cut plan that would give some 43 percent of its tax cuts to the best-off one percent of all taxpayers. Recently, Bush cheerfully characterized himself as a member of that elite group. That’s certainly true. In fact, based on the non-wage income the Bushes reported on their 1999 tax returns plus the $400,000 presidential salary, the Bushes are likely to report total adjusted gross income in each of the next several years in excess of $2 million annually.
So how would the Bush tax cut plan affect the President and his wife?
The following table looks at the likely effects of the Bush income tax cuts on George W. and Laura Bush, from 2002 when the plan begins to be phased in through 2006 when the income tax cuts are fully in place. The figures show that by the time the tax cuts are fully in place, the Bushes can expect a reduction in their federal income tax bill of almost $100,000 a year.
| Effects of the Bush Income Tax Cuts on George W. & Laura Bush Year by Year Estimates as the Tax Plan is Phased In |
|||||
| (Non-wage income & deductions are based on what the Bushes reported in 1999) | |||||
| 2002 | 2003 | 2004 | 2005 | 2006 | |
| Salary | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 |
| Capital gains | 669,000 | 716,000 | 766,000 | 820,000 | 877,000 |
| Interest | 957,000 | 1,024,000 | 1,096,000 | 1,173,000 | 1,255,000 |
| Dividends | 106,000 | 113,000 | 121,000 | 129,000 | 138,000 |
| Adjusted gross income | 2,132,000 | 2,253,000 | 2,383,000 | 2,522,000 | 2,670,000 |
| Deductions— | |||||
| Gross deductions | 93,000 | 98,000 | 103,000 | 108,000 | 113,000 |
| Deduction disallowed | –60,000 | –63,000 | –67,000 | –71,000 | –76,000 |
| Net deductions | 33,000 | 35,000 | 36,000 | 37,000 | 37,000 |
| Taxable income | 2,039,000 | 2,155,000 | 2,280,000 | 2,414,000 | 2,557,000 |
| Taxable w/o capital gains | 1,370,000 | 1,439,000 | 1,514,000 | 1,594,000 | 1,680,000 |
| Income tax | |||||
| Current law | 647,400 | 683,400 | 722,400 | 764,100 | 808,800 |
| Bush plan | 627,700 | 650,600 | 673,000 | 698,600 | 709,000 |
| Tax Cut Each Year | $ –19,700 | $ –32,800 | $ –49,400 | $ –65,500 | $ –99,800 |
| Note: figures do not include the effects of the Bush estate tax repeal or corporate tax breaks. Citizens for Tax Justice, Feb. 12, 2001 |
|||||
Want even more CTJ? Check us out on Twitter, Facebook, RSS, and Youtube!