Online Tax Calculator Updated with Obama Compromise Provisions
Taxpayers Can Calculate Their Liability under Latest Proposal Washington, DC, December 9, 2010-Earlier this week, President Obama and the Republican leadership in Congress reached a tentative compromise on a tax cut package for the next two years. The Tax Foundation has now updated the online calculator at MyTaxBurden.org to include this compromise scenario.
Under the proposed plan, all of the income tax cuts passed in 2001 and 2003 under President George W. Bush would be extended, in addition to all of the 2009 stimulus bill tax cuts except for the Making Work Pay credit, which will be replaced by a cut in the employee portion of the social security payroll tax rate.
Users can now compare their 2011 tax bill under three scenarios: (1) Congress allows all the Bush tax cuts expire; (2) Congress passes the compromise proposal, and (3) Congress passes the Democratic tax plan that recently passed the House but stalled in the Senate. The calculator now includes payroll taxes in addition to income taxes, since the payroll tax cut is a key component of the compromise plan.
"The 2011 Tax Calculator allows users not only to see their likely tax bill under multiple scenarios, but also to customize their projections by including capital gains, dividends, and social security income in addition to wages and salary," said Nick Kasprak, creator of the calculator and analyst at the Tax Foundation.
The online tools available at MyTaxBurden.org are a free service of the Tax Foundation to taxpayers. The website hosts several interactive tools, including a value-added tax calculator, a property tax database, and a variety of other data products.
For more information on the Obama tax compromise proposal, see "Initial Observations on Pending Tax Cut Deal" by Tax Foundation President Scott A. Hodge.
The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.