Estimated Impact of Potential Tax Law Changes
The Urban Institute and Brookings Institution have teamed up to build a tax calculator to compare the current federal income tax policy to potential changes. While this is simplified tax calculator, it leaves out a lot of details, it does give an idea of how federal income tax changes could affect different levels of income.
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Scenarios:
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Tax law if all the 2001-2003 tax cuts (often called the “Bush tax cuts”) expire, as is scheduled to happen in 2011;
Tax law as proposed in President Obama’s 2011 Budget, which would let the 2001-2003 tax cuts expire only for high-income taxpayers.