Responsible Wealth Tax Cut Calculator

Responsible Wealth Tax Cut Calculator (2009 Tax Year)

Calculator

Use this calculator to find out how the 1997 capital-gains tax cut and the 2001 and 2003 income, dividend, and capital gains tax cuts affect you. The figures you enter into the calculator can be seen by you and you alone. They will not be transmitted to us or anyone else.

Four guidelines for using the calculator:

1. It will help if you have your completed federal income tax return with you as you fill out this form. However, you can also make a rough estimate based on previous years' returns and/or what you expect.

2. In the yellow sections you will be asked for information. After you have entered the information, click the "Calculate and Continue" button to continue.

3. Figures in the gray sections will be automatically calculated for you.

4. If you have already started filling out the Tax Fairness Pledge form on another web page, use the "Back" button on your browser to return to your existing form, once you have noted your total 2009 tax break. Otherwise, follow the links at the bottom to continue to the pledge.

This calculator is intended to be educational in value and not to be used as a financial planning tool. Your actual tax savings may be affected by other parts of the tax law, including the child tax credit, the business tax deductions, educational deductions, and the Alternative Minimum Tax (AMT).

Tax Break Calculator

NONE of the information entered in this calculator will be transmitted beyond this form.

I. Your Tax Bracket
1. What is your Filing Status?

2. Enter your 2009 Taxable Income and click the "Calculate and Continue" button.
Estimate or enter the figure on line 43 of your 2009 Form 1040 income tax return.

2. $
3. Your tax bracket, prior to the 2001-2003 tax cuts:
3.
4. Your current tax bracket:
4.
II. Income Tax Cuts

Based on your filing status and income, your savings from the various income tax rate reductions are detailed below.

Top tax rate reduction
5. For your filing status, the threshold for the new top 35% tax rate is:
5.
6. Subtracting that amount from your income, we get the amount of your income taxed at the new top rate of 35%:
6.
7. Your savings due to the reduction of the top tax rate from 39.6% to 35%:
7.
The reduction of the 36%, 31%, and 28% tax rates to 33%, 28%, and 25%
8. The amount of your income below the new 35% threshold:
8.
9. For your filing status, the threshold for the 25% tax rate is:
9.
10. By subtracting line 9 from line 8, we get the amount of income taxed at the new 33%, 28%, and 25% rates:
10.
11. Tax rates in each of these brackets were cut by 3 percentage points. Amount saved:
11.
Creation of the new 10% bracket in 2001
12. For your filing status, a new tax rate of 10% is charged on all income up to:
12.
13. The amount of your income taxed at the new rate of 10%:
13.
14. Without the 2001 tax cut, this income would have been taxed at 15%. Your savings from this change:
14.
Total Savings from rate reductions
15. Adding lines 7, 11, and 14 we get your total savings from income tax rate reductions:
15.
III. 1997 & 2003 Capital Gains Tax Cuts
16. Enter your Net Long-Term Capital Gains and click the "Calculate and Continue" button.
Estimate or enter the figure on Schedule D, Line 15 of your 2009 Form 1040 income tax return.
16. $
17. In 1997, the long-term capital gains tax rate was lowered by eight percentage points. Your savings from this change:
17.
18. In 2003, the tax on long-term capital gains was lowered 5 additional percentage points. Your savings from this change:
18.
19. Adding lines 17 and 18, we get your total savings from the 1997 and 2003 capital gains tax reductions:
19.
IV. 2003 Dividend Tax Cut
20. Enter your 2009 Qualified Dividends and click the "Calculate and Continue" button.
Estimate or enter the figure on Line 9b of your 2009 Form 1040 income tax return.
20. $
21. Without the 2003 dividend tax cut, this dividend income would have been taxed as regular income at a rate of:
21.
22. Your new dividend tax rate:
22.
23. Reduction in your dividend tax rate:
23.
24. Multiplying your dividend income by the reduction in your dividend tax rate, your savings from the dividend tax cut comes to:
24.
V. The Bottom Line: Your 2009 Tax Break
25. Adding your savings from the rate reductions, the cuts in the capital gains tax, and the cut in the dividend tax, we get your total 2009 tax break:
25.
(Write this number down or copy it to your computer's clipboard.)
Calculator by Helen Flannery

WAIT! Before you close this page, please read the following...
Remember, we aren’t storing any of your data from this page, so you may want to print a copy of this form for your own records before going any further. You may also want to copy your total tax break or write it down before continuing.

Please continue to the Responsible Wealth Tax Fairness Pledge if you think this money should be spent on important national priorities instead of on tax breaks for the wealthy.