If one assumes the tax cut is $245 billion, how much are taxes cut (in dollars) for families in the $200,000 and over income bracket? How much are taxes cut (in dollars) for families in the $20,000 to $30,000 income bracket.
If one assumes the tax cut is $245 billion, how much are taxes cut (in dollars) for families in the $200,000 and over income bracket? How much are taxes cut (in dollars) for families in the $20,000 to $30,000 income bracket.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. If one assumes the tax cut is $245 billion, how much are taxes cut (in dollars)
for families in the $200,000 and over income bracket? How much are taxes cut
(in dollars) for families in the $20,000 to $30,000 income bracket.
Transcribed Image Text:Two graphs representing the 1995 tax cut, New York Times, April 7, 1995.
ON THE OTHER HAND…..
Two Views of a Tax Cut
Republican
Math: An Even
Cut Across
the Board
How much taxes
would fall for
families in each
group
Source House
Ways and
Means
Committee
Democratic
Math: A Select
Few Get the
Benefits
SHARE OF
TAX CUTS
Share of tax
cuts assigned
to each
income group
Source
Treasury Dept
2.3%
3.4%
0 to $10,000
$10,000 to $20,000
0.2% 1.3%
3.9%
$20,000 to $30,000
0 to $10,000
$10,000 to $20,000
3.3%
4.3% 4.4% 4.4%
$20,000 to $30,000
$30,000 to $40,000
11.6%
$30,000 to $50,000
4.0%
$40,000 to $50,000
$50,000 to $75,000
$75,000 to $100,000
16.4%
$50,000 to $75,000
$200,000 and over
$100,000 to $200,000
3.7%
15.2%
$75,000 to $100,000
23.4%
3.7%
28.1%
$200,000 and over
$100,000 to $200,000
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