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Created: April 1, 2003
Latest Update: April 1, 2003
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Backup of California: Implementing the President's Economic Growth Package
By The Heritage Foundation, Right Perspective
SOURCE: The Heritage Foundation
Copyright: Source Copyright.
Included here under Fair Use Doctrine for teaching purposes.

California

Implementing the President's Economic Growth Package could create millions of jobs, markedly increase Gross Domestic Product (GDP) and personal income, and, as a result of this growth, expand each state's tax base, bringing more money into the state treasury.

Who would benefit in California from the President’s entire growth package? Entire state: 10,434,000 filers.

Who would benefit in California from specific parts of the President’s plan?

• Accelerated 10% bracket expansion: 7,819,000
• Accelerated rate reduction: 3,613,000
• Married couples who would benefit from the elimination of the marriage penalty: 3,843,000
• Families with children who would benefit from increasing the per child tax credit from $600 to $1,000: 2,735,000
• Taxpayers who reported dividend income on their 2001 tax returns: 3,946,000
• Small business entrepreneurs who filed as individuals in 2001: 2,715,000

Chart 1: Job Growth
From 2004-2008, an average of 111,000 additional California citizens would secure jobs.

Chart 2: Disposable Income Increase (in billions)
California taxpayers will average $17 billion dollars more in disposable income per year from 2004-2008.

Chart 3: Personal Savings Growth (in billions)
California taxpayers will average $7.6 billion dollars more in personal savings per year from 2004-2008.

Chart 4: Additional Income Typical Married Joint Tax Filers with Two Children Could Receive from the Bush Tax Plan Over the Next Five Years

This chart shows the estimated additional income for the years 2003 through 2007 after implementing President Bush’s January 7, 2003 tax proposal. The income in the category “With Bush Tax Plan and Additional Economic Growth” represents the additional income from both lower federal tax rates and higher average wage growth. The income in the category “Under Current Law and Current Economic Growth” is the current law after tax income assuming that wages grow at a current law forecasted rate of growth.

For more information, please see the methodology note.

© 2002 The Heritage Foundation
All Rights Reserved.