What Families Will Save on Taxes

The following table, supplied by the Treasury Department, shows the income tax now paid by the average family of four in various income brackets, the savings they can expect after President Carter's proposals for income tax cuts go into effect, the increase in Social Security taxes they will pay next year and the net change in both taxes. The average family earning less than $10,000 will actually collect money from the Government; some are net taxpayers, but those earning less than $8,000 are eligible for an "earned-income credit" that entitles them to "refunds" greater than their taxes paid. Tax rates even for families earning more than $100,000 will be reduced, but those people on average will end up paying more taxes because of various reforms that the President proposes.

INCOME GROUP Less than $10,000

$10,000 -- 15,000

15,000 -- 20,000

20,000 -- 30,000

30,000 -- 50,000

50,000 -- 100,000

100,000 -- 200,000

200,000 and over

PRESENT INCOME TAX PAYMENTS *

$ 9

867

1,739

3,117

6,287

16,336

40,885

127,666

CHANGE UNDER CARTER'S PLAN

$ --88 (refund)

--278

--278

--337

--308

--248

+202

+2,807

SOCIAL SECURITY INCREASE

$ 16

30

48

115

192

232

268

145

NET S.S. & INCOME TAX CHANGE

$ --72

--248

--230

--222

--116

--16

+470

+2,952

Figures are averages for each income group

* Based on 1976 returns

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