http://www.taxpolicycenter.org
5-Jun-03
Table T03-0155
Impact of Increasing the Child Tax Credit's Refundability Rate from 10% to 15%
on a Head of Household with Two Children under 17 in 2003 by Income
AGI (2002
dollars)
Income
tax
before
credits
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
14351**
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
27,000
28,000
29,000
30,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
85
185
285
385
485
585
685
785
885
985
1,128
1,278
1,428
1,578
Income
Income
tax after
tax after Increase in
Income tax
child Child credit w/
child
Child credit
child credit Earned
Payroll taxes plus payroll tax
credit
credit
w/ 10%
income
15%
in going
minus EITC
@ 15.3%
refundability with 10% refundability with 15% from 10% tax credit (employee plus and child credit Average tax
rate
rate
to 15% rate (EITC)
rate
rate
employer)*
w/ 15% rate
rate
0
0
0
0
0
0
0
0
0
0
0
50
150
250
350
385
450
550
735
935
1,135
1,335
1,535
1,735
1,935
2,000
2,000
2,000
2,000
2,000
2,000
2,000
0
0
0
0
0
0
0
0
0
0
0
(50)
(150)
(250)
(350)
(385)
(450)
(550)
(650)
(750)
(850)
(950)
(1,050)
(1,150)
(1,250)
(1,215)
(1,115)
(1,015)
(873)
(723)
(573)
(423)
0
0
0
0
0
0
0
0
0
0
0
75
225
375
525
578
675
825
1,060
1,310
1,560
1,810
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
0
0
0
0
0
0
0
0
0
0
0
(75)
(225)
(375)
(525)
(578)
(675)
(825)
(975)
(1,125)
(1,275)
(1,425)
(1,515)
(1,415)
(1,315)
(1,215)
(1,115)
(1,015)
(873)
(723)
(573)
(423)
0
0
0
0
0
0
0
0
0
0
0
25
75
125
175
193
225
275
325
375
425
475
465
265
65
0
0
0
0
0
0
0
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
4,000
4,216
4,216
4,216
4,165
4,092
3,955
3,744
3,534
3,323
3,112
2,902
2,691
2,481
2,270
2,059
1,849
1,638
1,428
1,217
1,006
796
0
153
306
459
612
765
918
1,071
1,224
1,377
1,530
1,683
1,836
1,989
2,142
2,196
2,295
2,448
2,601
2,754
2,907
3,060
3,213
3,366
3,519
3,672
3,825
3,978
4,131
4,284
4,437
4,590
0
(247)
(494)
(741)
(988)
(1,235)
(1,482)
(1,729)
(1,976)
(2,223)
(2,470)
(2,608)
(2,605)
(2,602)
(2,548)
(2,473)
(2,335)
(2,121)
(1,908)
(1,694)
(1,480)
(1,267)
(993)
(530)
(66)
398
861
1,325
1,831
2,344
2,858
3,372
Marginal tax
rate
0.00%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-23.71%
-21.71%
-20.02%
-18.20%
-17.24%
-15.57%
-13.26%
-11.22%
-9.41%
-7.79%
-6.33%
-4.73%
-2.41%
-0.29%
1.66%
3.44%
5.10%
6.78%
8.37%
9.86%
11.24%
Source: Urban-Brookings Tax Policy Center calculations
* Technically, one should divide AGI by 1.0765 to credit the employee's income for the employer share of the Social Security tax paid on the employee's behalf. .
Such a change would lower slightly average and marginal tax rates
** Poverty level
(1) Calendar year. Baseline is current law which includes the Jobs and Growth Tax Relief Reconciliation Act of 2003.
(2) All income assumed from earnings
(3) Children are assumed to qualify for EITC and child credit
0.00%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
-24.70%
0.30%
0.30%
0.30%
21.36%
21.36%
21.36%
21.36%
21.36%
21.36%
21.36%
21.36%
46.36%
46.36%
46.36%
46.36%
46.36%
46.36%
51.36%
51.36%
51.36%
51.36%