Tax Stimulus

We have posted distribution tables for Senator McConnell's proposal to reduce the 25 percent individual income tax rate to 15 percent under current law in 2009. His proposal provides only modest tax relief -- about $18 billion -- because it throws almost 6 million more people onto the AMT and does not benefit the 30 million taxpayers already on the AMT under current law in 2009. His proposal would increase AMT revenue from $103 billion to $181 billion, dramatically raising the cost of extending the AMT patch for this year.

The tables are available here:

Reduce 25 Percent Individual Income Tax Rate to 15 Percent, Distribution of Federal Tax Change by Cash Income Level, 2009

Reduce 25 Percent Individual Income Tax Rate to 15 Percent, Distribution of Federal Tax Change by Cash Income Percentile, 2009

TaxVox Blog

McConnell Proposes Stimulus for Tax Preparers

Senator Mitch McConnell proposed over the weekend to cut the 25-percent tax bracket to 15 percent as part of the economic recovery package. This might make sense politically, but it’s a pretty dubious economic stimulus.

Read the full blog entry here

Obama's $300 Billion Tax Cut: Lots of Buck, Not Much Bang

The soon-to-be Obama Administration floated quite a trial balloon over the weekend: $300 billion in tax cuts for workers and business over the next couple of years. When you get past the eye-popping number, perhaps the most striking element is how conventional most of the ideas are.

Read the full blog entry here