Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010

Find the White House fact sheet here.

Find the full legislation here.

President Obama and Congressional Republicans have agreed on a set of changes to the tax code that would affect tax liabilities for one or two years. The Tax Policy Center has analyzed the distributional effects of the following provisions:

2011 and 2012

• extend all 2001 and 2003 individual income tax cuts
• extend EITC and child tax credit provisions in the 2009 stimulus act
  • EITC phaseout threshold for married couples filing jointly $5,000 (indexed) above that for single filers
  • 45 percent EITC phase-in rate for families with three or more children
  • $3,000 threshold (unindexed) for refundability of child tax credit
• extend American Opportunity Tax Credit for higher education
• impose the estate tax with an effective exemption of $5 million and a 35 percent tax rate; replace the state death tax credit with a deduction

2011

• reduce the Social Security (OASDI) tax rate on employees to 4.2 percent for 2011; reduce self-employment tax rate by two percentage points but do not reduce the amount that can be deducted against income

2010 and 2011

• implement alternative minimum tax (AMT) patch setting the AMT exemption at $47,450 for single filers and $72,450 for married couples filing jointly ($48,450 and $74,450 for 2011); allow credits against AMT, regardless of tentative AMT
• extend selected “extender” tax provisions
  • deduction for state and local general sales taxes
  • above-the-line deduction for education expenses
  • educator expense deduction

The following tables show the distributional effects in 2011 of those tax provisions, measured against either a current policy baseline or a current law baseline.

Related Tables:

• TPC's has a full guide to tables here.
• TPC's has older estimates here.
• TPC has posted JCT revenue estimates here.
• Tables comparing the Making Work Pay tax credit with the 2-percentage-point payroll tax reduction are available here.
• Tables comparing of 2010 and 2011 Tax Laws here.
• Comparison of alternative estate tax policies here.
• Guide to other estate tax tables here.