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For Immediate Release
Office of the Press Secretary
March 8, 2001
President's Tax Relief Plan Gives Greatest Relief to Lowest Income Taxpayers
The President's plan is fair to all income tax payers, sending money back to the people who sent it in. The attached analysis confirms that under the President's plan the highest percentage tax cuts go to the lowest income taxpayers and higher-income Americans will pay a larger share of the income tax burden.
* Families earning between $30,000 and $40,000 will see their share of total income taxes paid fall from 2.5% of total income taxes paid under current law to 1.8% under the President's plan.
* The share of income taxes paid is reduced for all income groups below $100,000 in income.
* The percentage reduction in income tax burden is over 130% for the lowest income group, and falls as income level rises. The reduction for those in the highest income group - earning over $200,000 - is 8.7%.
* Under current law, households earning more than $200,000 a year pay 43% of the income tax burden. Under the President's plan, households earning more than $200,000 a year will bear 46% of the income tax burden.
* This tax cut package is fair. It returns money to the people who sent it in.
Under the President's plan, a four-person family earning $35,000 a year will no longer face any income tax burden. A four-person family earning $45,000 a year will see their income taxes cut in half. And a four-person family earning $75,000 will pay 22% less in income taxes.
The President's plan reduces the top income tax rate to 33%, higher than the top rate of 28% in effect prior to 1991, and higher than the 31% top rate in 1992.
The typical family of four will get a $1,600 tax cut.
The vast majority of the small businesses in America are taxed under the individual rates. Eighteen million businesses taxed under the individual rates will receive tax relief.