I've read TMF Taxes article on June 15, 2001 "New Rate Cuts and Rebates" and I've also read a couple of messages from this board on this topic. When it comes time to do the 2001 taxes next year, what tax tables will we be using? If the tax tables do not include a reduction of the base rate from 15% to 10%, then is there a tax cut for 2001?Let's say a person makes $10,000 a year. In the year 2000, for the first $6000 of their income they would've been taxed at 15% and let's they're taxed at 10% for the remainder of their income. The amount of taxes they pay is (.15 * 6000) + (.10 * 4000) = $1300.In the year 2001, if we don't use a different tax table, then this person is supposed to pay $1300 in taxes. Have taxes been cut? Even though the government is sending a check for $300, overall, the person would still owe the same amount in taxes.Is my interpretation of the situation correct?
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