Prior to enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRUIRJCA), most of the provisions of the 2001 and 2003 tax cuts were scheduled to expire in 2011. The Tax Policy Center produced three sets of tables showing the effects of that expiration and possible extensions of the tax cuts beyond 2010. Following passage of the TRUIRJCA, these tables are no longer relevant for evaluating subsequent extensions of the earlier tax cuts.
Incremental steps between current law and current policy:
The Tax Policy Center (TPC) has estimated the incremental effects of extending all of the income tax cuts and continuing the relaxation of the alternative minimum tax (the "AMT patch"). Ten distribution tables proceed step by step from full extension to full expiration, and vice versa.
Incremental steps between current law, President’s proposal, and current policy:
Because President Obama proposed to extend only some of the provisions of the 2001-2003 tax acts, TPC estimated the incremental distributional effects of extending one by one just the provisions in the president’s proposal—an analysis termed “Current Law to President’s Budget Proposal.” TPC also analyzed the incremental effects of moving from the president’s proposal to full extension of the 2001-03 tax cuts: those steps involved estimating the distributional effects of incrementally extending individual provisions that apply only to high-income taxpayers. That analysis is labeled “President’s Budget Proposal to Current Policy.”
Supplemental tables:
In addition to the incremental analysis, TPC estimated the distributional effects of full extension or full expiration of the 2001-2003 tax cuts along with other statistics, including average effective marginal tax rates, counts of tax units by statutory marginal rate, and counts of tax unit’s affected by Administration’s proposal.
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