http://www.pbs.org/newshour/extra/te..._cut_5-07.html
As I understand it, and I am by no means an accountant, one section will do the following:
If Taxable income is $0-$6,000, you save: $0-$300
If Taxable income is $6,000 - $27,950, you save: $0 (no change in taxes)
If Taxable income is $27,950-$67,70, you save: $838.50-$2,031
If Taxable income is $67,700-$141,250, you save: $2031-$4,237.50
If Taxable income is $141,250-$307,050, you save: $4237.50-$9211.50
If Taxable income is $307,050 or higher, you save: $11,053.80 or higher
(I don't know where the quoted figure of $270 came from)
This from a teacher's guide explaining one section:
There are lots of sections.
The following makes interesting reading
http://www.ncpa.org/bothside/krt/krt010600b.html
Bush's Proposed Tax-Cut Will Remove Six-Million Americans From Tax Roles
ALEXANDRIA, VA.
In a town notorious for spectacles, it is something to behold.
Testimonies by the new found believers, the fire-and-brimstone sermons, and the brash choir belting out a high-flying refrain would have brought tears to the eyes of Jimmy Swaggart.
But the "congregation" isn't in church; they are in Washington railing against tax relief because it was "fiscally irresponsible."
Yet, opponents of tax cuts continue to demonstrate that they are still worshipping at the altar of big government, and their claim of having been "saved" is just a different verse from the old hymn book of government knows best.
Instead of donning false frocks of fiscal responsibility, these new acolytes ought to take a page from their predecessors' book.
In 1981, House Speaker Tip O'Neill proposed, in current dollars, a $1.3 trillion five-year tax cut to counter the $1.6 trillion tax cut offered by Ronald Reagan. At well over a trillion dollars, O'Neill's plan was billed as the "responsible" alternative.
In contrast, the Congressional plan President Clinton vetoed last year would return only $792 billion over the next ten years, and it included a mechanism to limit the cuts if the projected surpluses do not materialize.
Based on cautious economic assumptions, the plan currently proposed by Texas Governor George W. Bush would provide roughly $440 billion of tax relief over the next five years.
With stern warnings that a tax cut would fuel the flames of inflation and would overstimulate the economy, these new disciples of austerity argued for saving the money and paying down the debt.
Yet, they were willing to support President Clinton's plan that generated an additional $850 billion in new spending over the next ten years - on top of the $2.5 trillion increase called for under current budget projections.
The Clinton scheme would have raised taxes by almost $95 billion and soaked up $750 billion of the budget surplus over the next ten years. A similar proposal is expected to be submitted this year.
Research by National Taxpayers Union Foundation found that the legislative agendas of tax-cut opponents in the House of Representatives during the last Congress would increase federal spending, on average, by $115.9 billion per year.
While opponents of the tax-cut sing the praises of their new-found faith, they remain filled with joy when the choir belted out that old familiar standard: "only the rich benefit."
By definition, any plan to cut income taxes is likely to help those who do, in fact, have income. Even the IRS's own data show that the top tenth of income earners made 43 percent of the money in 1997 but paid 63 percent of the income taxes. I
Ironically, the income cut-off for this "rich" group of taxpayers began at $79,000 - hardly in league with Donald Trump.
Nonetheless, the Bush plan would still eliminate federal income taxes for a family of four making $35,000 per year, and it would remove over six million lower- and moderate-income families from the tax roll.
Far from being risky or reckless, plans to give money back to taxpayers are modest, measured moves. Unfortunately for these new pastors of the public purse, taxpayers can separate those who have real faith in them from those who are only mouthing the words.
Jeff Dircksen is Director of Congressional Analysis for the National Taxpayers Union, the nation's oldest and largest taxpayers' rights group.