| Here is how the tax bracket
rate changes look through 2010. |
|
| The immediate tax benefit
created by the new 10 percent bracket will come in the form of a credit which
will be distributed to most taxpayers by check before October 1, 2001. New payroll withholding tables will be in
effect for the last six months of 2001 which will have the effect of larger
take home pay. |
|
| Savings in ensuing years
will become more dramatic, with further rate reductions scheduled for higher
tax brackets. For example, a couple
who this year earns $150,000 might reasonably expect a reduction in 2001 taxes
of $950. But in 2010, they could
expect a savings of about $3,800. This
includes additional savings from new “marriage penalty” relief provisions. |