Making Work Pay Tax Credit
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$116.00 billion
Amount Spent:
$104.40 billion
Deficit Impact:
$116.00 billion Tax credit that provides total savings of up to $400 for individuals and $800 for married couples. The credit phases out for individuals earning more than $75,000 and married couples earning more than $150,000. The credit will be distributed over time through slight reductions in employer withholding amounts.
Provision is part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas, and tax breaks for individuals and corporations.
| Making Work Pay Credit (in millions of dollars) | ||||||||||||
| Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2009-2019 |
| Totals | 19,900 | 66,133 | 30,166 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 116,199 |
Notes:
Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Deficit impact is the final cost of a provision from 2009-2019. Amount spent reflects CRFB calculated continuations of disbursal rates since last reported on Recovery.gov in December 2010 and extrapolated to the present by CRFB staff.