CNN realpeople Page 24
Paid for by Gore/Lieberman, Inc.
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Family #5: Single Mother With Three Children Earning $22,000
Current Law
Gore-Lieberman
Tax Plan
Bush-Cheney Tax
Plan
Adjusted Gross Income
$22,000
$22,000
$22,000
Standard Deduction
-$6,650
-$6,650
-$6,650
Personal Exemptions
-$11,600
-$11,600
-$11,600
Taxable Income
$3,750
$3,750
$3,750
Marginal Tax Rate
15%
15%
15%
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Pre-Credit Tax Liability
$563
$563
$375
Child Tax Credit
60
-$1,500
-$1,500
-$3,000
Pre-EITC Federal Income Taxes
$0
$0
$0
Earned Income Tax Credit
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-$2,125
-$2,804
-$2,125
Federal Income Taxes
-$2,125
-$2,804
-$2,125
Total Tax Cut
n.a.
-$679
$0
Expanded Health Insurance
Current Law
Gore-Lieberman
Bush-Cheney
Full Cost of
Coverage
$5,736
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$5,000
63
$5,736
Assistance
$0 tax credit
$2,860
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in Federal CHIP$
$1,540 in State CHIP$
$0
65
tax credit
What
Person Pays
$478 / month
$5,763 / year
$50 / month
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$600 / year
$478 / month
$5,763 / year
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Marginal Tax Rate. Governor Bush has proposed creating a 10 percent rate that would cover the first $10,000 of taxable income for a
head of household.
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Child Tax Credit. The Clinton-Gore Administration signed into law a $500 tax credit. Governor Bush has proposed increasing this
credit to $1,000.
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Earned Income Tax Credit. The Gore-Lieberman plan lowers the EITC phaseout rate for families with two or more children.
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This is the average family premium for an employer-based group health insurance policy (Employer Health Benefits 1999 Annual
Survey). Premiums in the individual insurance market are even more expensive.
63
Rough average per capita cost.
64
Assuming that the family lives in a state with a CHIP Federal matching rate of 65 percent.
65
Assumes no take up of the private plan.
66
$25 premiums per child are typical in CHIP.
