Paid for by Gore/Lieberman, Inc.
20
Family #2: A Couple Making $50,000, Caring for an Elderly Parent, and Saving to Send their
Child to College
Current Law
Gore-Lieberman Tax
Plan
Bush-Cheney Tax
Plan
Adjusted Gross Income
$50,000
$50,000
$50,000
Standard Deduction
-$7,600
-$9,100
38
-$7,600
Personal Exemptions
-$11,600
-$11,600
-$16,500
39
Exclusion for Savings
-$1,000
-$1,000
-$1,000
Taxable Income
$29,800
$28,300
$24,900
Marginal Tax Rate
15%
15%
15%
40
Pre-Credit Tax Liability
$4,470
$4,245
$3,135
Child Tax Credit
41
-$500
-$500
-$1,000
Long-term Care Tax Credit
42
n.a.
-$3,000
n.a.
RSP Tax Credit Match
43
n.a.
-$1,000
n.a.
Federal Income Taxes
$3,970
-$255
$2,135
Total Tax Cut
n.a.
-$4,225
-$1,835
38
Gore Marriage Penalty Relief. The Gore marriage penalty plan increases the standard deduction for married couples to
twice that of singles, a $1,500 increase.
39
Bush Marriage Penalty Relief and Long-term Care. The Bush marriage penalty proposal provides an additional
exemption of 10 percent of the second earners income, up to a $3,000 exemption. The Bush long-term care proposal
provides an added $2,900 exemption, which for a family in the 15 percent bracket reduces their taxes by $435.
40
Marginal Tax Rate. Governor Bush has proposed creating a 10 percent rate that would cover the first $12,000 of taxable
income for a married couple.
41
Child Tax Credit. The Clinton-Gore Administration signed into law a $500 tax credit. Governor Bush has proposed
increasing this credit to $1,000.
42
Long-term Care Tax Credit. Under the Gore-Lieberman proposal, a family could take a $3,000 tax credit for long-term
care expenses.
43
Retirement Savings Plus. This family would be eligible for a 1:1 tax credit match on their savings.
