This scenario is courtesy of Americans for Tax Reform
This is a tax increase supported by Democrat Barack Obama and all Congressional Democrats, and opposed by Senator John McCain and Americans for Tax Reform. These taxpayers have a face, and ATR will be showcasing them all week long.
The Davis Family: A Middle Income Family in Middle America
Mike and Susan Davis live in Canton, OH. They have two children: Tommie is 5, and Christine is 3. They have a household income of $65,000 (the median amount for a family of four). They take the standard deduction. How much are their taxes scheduled to rise?
If the Present Tax Code Remains in Place
The Davis’ will have a federal tax bill of $3000
Under the 2011 Tax
The Davis’ standard deduction is shrunk because of the return of the marriage penalty.
This means that their taxable income goes up.
The tax rate on the first several thousand dollars of their taxable income has grown by 50%.
The child tax credit has been cut in half, so Tommie and Christine don’t help as much.
The Davis’ tax bill will be over $5000—a full $2000 higher than if present law were simply kept in place.