FROM THE OFFICE OF PUBLIC AFFAIRS

1.  Repeal the reduction in the top two income tax rates for individuals and married couples with taxable income exceeding $200,000.

2. Repeal the reduction in tax rates on capital gains and dividends for those individuals and married couples with incomes of more than $200,000. 

3.  Eliminate the repeal of the phase out of personal exemptions and the limitation on itemized deductions (PEP and “Pease,” respectively).

The Treasury Department estimates:

1. Repealing the reduction in the 36% and 39.6% income tax brackets for individuals and married couples with taxable incomes exceeding $200,000. 

1A) If EGTRRA & JGTRRA are permanently extended, repealing the reduction in the 36% and 39.6% income tax brackets for individuals and married couples with taxable incomes exceeding $200,000 would raise taxes by $171.9 billion.

1B) Under current law (EGTRRA & JGTRRA sunset in 2010), repealing the reduction in the 36% and 39.6% income tax brackets for individuals and married couples with taxable incomes exceeding $200,000 would raise taxes by $100.3 billion.

2. Repeal lower rates on capital gains and dividends for individuals and married couples with taxable incomes exceeding $200,000. 

Alternative 1: Repeal Lower Rates on ALL Capital Gains & Dividends
2A) If EGTRRA & JGTRRA are permanently extended, repealing the lower rates on all capital gains and dividends for individuals and married couples with taxable incomes exceeding $200,000 would raise taxes by $204.5 billion.

2B) Under current law, repealing the lower rates on all capital gains and dividends for individuals and married couples with taxable incomes exceeding $200,000 would raise taxes by $102.4 billion.

Alternative 2: Repeal Lower Rates on a PORTION of Capital Gains & Dividends
2C) If EGTRRA & JGTRRA are permanently extended, repeal of the lower tax rates on dividends and capital gains for the portion of dividends and capital gains that exceed $200,000 would raise taxes by $129.7 billion.

2D)Under current law, repeal of the lower tax rates on dividends and capital gains for the portion of dividends and capital gains that exceed $200,000 would raise taxes by $64.5 billion.

3.  Eliminating the repeal of the phase out of PEP and Pease. 

Assuming Alternative 1 from Question 2
3A) If EGTRRA & JGTRRA are permanently extended, and the lower rates on all capital gains and dividends are repealed for individuals and married couples with taxable incomes exceeding $200,000, eliminating the repeal of PEP and Pease would raise taxes by $100.5 billion.

3B)Under current law, if the lower rates on all capital gains and dividends are repealed for individuals and married couples with taxable incomes exceeding $200,000,  eliminating the repeal of PEP and Pease would raise taxes by $37.8 billion.

Assuming Alternative 2 from Question 2

3C) If EGTRRA & JGTRRA are permanently extended, and the lower tax rates on dividends and capital gains for the portion of dividends and capital gains that exceed $200,000 are repealed, eliminating the repeal of PEP and Pease would raise taxes by $92.3 billion

3D) Under current law, if the lower tax rates on dividends and capital gains for the portion of dividends and capital gains that exceed $200,000 are repealed, eliminating the repeal of PEP and Pease would raise taxes by $36.6 billion.

RAISING TAXES ON HARDWORKING INDIVIDUALS AND MARRIED COUPLES
Under these proposals, hardworking individuals and married couples could have their taxes raised by the following amounts:

Alternative 1
Under these proposals, assuming permanent extension, hardworking individuals and married couples could have their taxes raised by $476.9 billion.  (1A + 2A + 3A)

Under these proposals, assuming current law, hardworking individuals and married couples could have their taxes raised by $240.5 billion. (1B + 2B + 3B)

Alternative 2
Under these proposals, assuming permanent extension, hardworking individuals and married couples could have their taxes raised by $293.9 billion. (1A + 2C + 3C)

Under these proposals, assuming current law, hardworking individuals and married couples could have their taxes raised by $201.4 billion.  (1B + 2D + 3D)