Paid for by Gore/Lieberman, Inc.
21
Family #3: A Family With Three Children Earning $60,000 and Helping Send a Child to College
Current Law
Gore-Lieberman Tax
Plan
Bush-Cheney Tax
Plan
Adjusted Gross Income
$60,000
$60,000
$60,000
Standard Deduction
-$7,600
-$9,100
44
-$7,600
Personal Exemptions
-$14,500
-$14,500
-$16,000
45
Exclusion for Savings
-$2,000
-$2,000
-$2,000
Taxable Income
$35,900
$34,400
$34,400
Marginal Tax Rate
15%
15%
15%
46
Pre-Credit Tax Liability
$5,385
$5,160
$4,560
Child Tax Credit
47
-$1,000
-$1,000
-$2,000
College Opportunity / Lifetime
48
-$2,000
-$2,800
-$2,000
RSP Tax Credit Match
49
n.a.
-$2,000
n.a.
Federal Income Taxes
$2,385
-$640
$560
Total Tax Cut
n.a.
-$3,025
-$1,825
44
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.
45
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.
46
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.
47
Child Tax Credit. The Clinton-Gore Administration signed into law a $500 tax credit. Governor Bush has proposed
increasing this credit to $1,000.
48
College Opportunity Tax Cut / Lifetime Learning. Under the Gore-Lieberman proposal, a family would have a choice
of a tax deduction or a 28 percent tax credit on up to $10,000 of tuition.
49
Retirement Savings Plus. This family would be eligible for a 1:1 tax credit match on their savings.
