tax policy center
Tax Topics

Tax Topics

2009 Tax Stimulus
2012 Election Tax Plans
2014 Budget
Alternative Minimum Tax (AMT)
American Jobs Act of 2011
Brief Description of the Model 2013
Current-Law Distribution of Taxes
Deficit Reduction Proposals
Distribution of the 2001 - 2008 Tax Cuts
Earned Income Tax Credit
Economic Stimulus
Education Tax Incentives
Estate and Gift Taxes
Expiration of the Bush Tax Cuts
Explanation of Income Measures 2013
Federal Budget
Fiscal Cliff
Fiscal Crisis
Flow-Through-Enterprises
Guide to TPC Tables
Health Insurance Tax Incentives
Homeownership
How to Interpret Distribution Tables 2013
Marriage Penalties
Model FAQ 2013
Model Related Resources and FAQs
Payroll Taxes
Presidential Transition - 2009
Recent Tax Stimulus Legislation
Retirement Saving
Tax Encyclopedia Index
Tax Expenditures
Tax Reform Proposals
Value-Added Tax (VAT)
Who Doesn't Pay Federal Taxes?
Working Families

E-mail Newsletter

Enter your e-mail address to receive periodic updates on TPC publications and events.

> newsletter archive

tax topics
 
2010 Tax Act

Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010

Find the White House fact sheet here.

Find the full legislation here.

President Obama and Congressional Republicans have agreed on a set of changes to the tax code that would affect tax liabilities for one or two years. The Tax Policy Center has analyzed the distributional effects of the following provisions:

2011 and 2012

  • extend all 2001 and 2003 individual income tax cuts
  • extend EITC and child tax credit provisions in the 2009 stimulus act
    • EITC phaseout threshold for married couples filing jointly $5,000 (indexed) above that for single filers
    • 45 percent EITC phase-in rate for families with three or more children
    • $3,000 threshold (unindexed) for refundability of child tax credit
  • extend American Opportunity Tax Credit for higher education
  • impose the estate tax with an effective exemption of $5 million and a 35 percent tax rate; replace the state death tax credit with a deduction

2011

  • reduce the Social Security (OASDI) tax rate on employees to 4.2 percent for 2011; reduce self-employment tax rate by two percentage points but do not reduce the amount that can be deducted against income

2010 and 2011

  • implement alternative minimum tax (AMT) patch setting the AMT exemption at $47,450 for single filers and $72,450 for married couples filing jointly ($48,450 and $74,450 for 2011); allow credits against AMT, regardless of tentative AMT
  • extend selected “extender” tax provisions
    • deduction for state and local general sales taxes
    • above-the-line deduction for education expenses
    • educator expense deduction

The following tables show the distributional effects in 2011 of those tax provisions, measured against either a current policy baseline or a current law baseline.

vs Current Law
By Cash Income Level
By Cash Income Percentile
vs Current Policy
By Cash Income Level
By Cash Income Percentile

Related Tables: