Income level options represent the Tax Policy Center's estimates for income and expenses at the 20th, 50th, 80th, 99th and 99.9th percentiles in each group. See how taxes would change for other types of households and other income levels by using the Tax Policy Center's tax calculator, the source for this graphic.
Breaking down the differences
2012 tax plan
The Democratic plan
The Republican plan
The fiscal cliff
Includes all Bush-era tax cuts, the temporary payroll tax cut, stimulus credits and Alternative Minimum Tax (AMT) patch.
The plan, put forth in a bill passed by Senate Democrats on July 25, extends expiring Bush tax cuts for all but the top 2 percent of taxpayers, as well as the tax credits originally enacted by the 2009 stimulus. It patches the AMT, assumes new taxes associated with the 2010 health-care law, and ends the temporary payroll tax cut.
The plan, put forth in a bill approved by the GOP-led House on Aug. 1, extends Bush tax cuts for everyone, ends the 2009 credits and temporary payroll tax cut, patches the AMT and includes new taxes associated with 2010 health-care law.
If no deal is reached, most tax cuts will expire, new taxes associated with the health-care law will still go into effect and the AMT will not be patched.
Regular tax rates
Six rates, ranging from 10% to 35%.
Seven rates, ranging from 10% to 39.6%.
Five rates, ranging from 10% to 35%.
Five rates, ranging from 15% to 39.6%.
Long-term capital gains
0% for those with regular tax rates 15% or lower; 15% for regular tax rates above 15%.
0% for those with marginal tax rates of 15% or lower; 15% for marginal tax rates of 25%, 28%, and 33%; 20% for marginal tax rates of 36% or 39.6%.
0% for those with a marginal tax rate of 25% or lower; 15% for marginal tax rate above 25%.
10% for those with regular tax rates 15% or lower; 20% for regular tax rates above 15%.
Qualified dividends
Treated as long-term capital gains.
Treated as long-term capital gains.
Treated as long-term capital gains.
Face ordinary income tax rates.
Child tax credit
$1,000 per child.
$1,000 per child.
$1,000 per child.
$500 per child.
Child and dependent care credit
Between 20% and 30% of up to $3,000 per child.
Between 20% and 30% of up to $3,000 per child.
Between 20% and 30% of up to $3,000 per child.
Between 20% and 30% of up to $2,400 per child.
Earned income tax credit
Phases in at 45% of income for families with three or more children.
Extends phase-in rate of 45% of income for families with three or more children.
Phases in at 40% of income for families with two or more children.
Phases in at 40% of income for families with two or more children.
American opportunity tax credit
100% of first $2,000 and 25% of next $2,000.
100% of first $2,000 and 25% of next $2,000.
Does not apply. Hope tax credit equal to 100% of first $1,300 and 50% of next $1,300.
Does not apply. Hope tax credit equal to 100% of first $1,300 and 50% of next $1,200.
Personal exemptions
No phase-out of personal exemptions or limitation on itemized deductions for high-income taxpayers.
Phase-out of personal exemptions and limitation on itemized deductions apply for high-income taxpayers.
No limitation on itemized deductions and no personal exemption phaseout for high-income taxpayers.
Phase-out of personal exemptions and limitation on itemized deductions apply for high-income taxpayers.
