US Treasury Lists Beneficiaries Of Bush Tax Cuts

by Mike Godfrey, Tax-News.com, New York

26 April 2001

On Monday the US Treasury Department released new data showing how many Americans will benefit from the President's tax relief plan when it is fully phased in.

Treasury Secretary Paul O'Neill stated, "These numbers show that President Bush's tax relief plan will let tens of millions of working Americans and their families keep more of their hard-earned income."

The projections are based on predicted 2002 income and population levels, and assume that the following tax provisions go into force: a new 10 percent individual income tax bracket; a reduction in individual income tax rates; a reduction in the marriage penalty; charitable deductions for non-itemizers; and an increase in the child tax credit.

When these provisions are fully phased-in:

• 103 million individuals and families will receive an average tax cut of $1,117;
• 74 million women will receive an average tax cut of $1,304;
• 36 million families with children will keep on average an extra $1,617 for their needs, such as their children's education;
• 8 million hard-working single moms will be able to keep on average $712 more of their paychecks for their family's most pressing needs;
• 13.4 million seniors will be able to keep on average $892 more of their income;
• 3.6 million individuals and families will have their tax liability completely eliminated by the President's tax relief plan.

"The numbers speak for themselves and they speak with a single voice: The President's plan gives tax relief to grandparents, grandchildren, and millions of Americans in between," stated O'Neill.

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