Scenario 1: A single individual age 25-50 who is not in college, disabled, or blind; and who drives 12,000 miles a year and gets an average of 24 mpg.
Scenario #2: A married couple between the ages of 25-50 with two children between the ages of 6-8 and 9-11 respectively. None of them are in college, disabled or blind. They drive 24,000 miles a year and get an average of 24 mpg.
Notes on charts:
These charts reflect the tax change proposal which lowers the income tax to a flat 6.7% for those above a certain threshold, eliminates the sales tax on groceries, repeals the existing grocery tax credit, and increases the motor fuels tax by 7 cents per gallon.
The scale on the left represents how the tax change proposal impacts your total annual tax burden compared to the current tax structure. This includes your income tax, sales tax, and motor fuels tax. The top of the chart represents lower taxes while the bottom represents higher taxes.
The scale along the bottom represents your annual taxable income. This is not the same as your total income. Your total income would be at least $10,150 higher for a single filer and at least $28,200 higher for a married couple with two children.
The vertical bars represent the range of impact the tax change proposal could have based on your food purchasing habits. Within the blue portion of the bar is a "low-cost" to "moderate" food budget. Below the blue bar is a "thrifty" food budget, and above the blue bar is a "liberal" food budget. The more you spend on groceries, the more this proposal will save you.
Variables to consider:
Factors which could positively shift the tax impact: Older children (they eat more); buying more food (for entertaining, etc.); driving fewer annual miles; getting better fuel economy.
Factors which could negatively shift the tax impact: Younger children or older adults (they eat less); buying less food (due to eating out, etc.) driving more annual miles; getting worse fuel economy.
