About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

2 Federal Tax Program Evaluator 1 (1981)

handle is hein.tera/ftaxamor0003 and id is 1 raw text is: FEDERAL TAX PROGRAM EVALUATOR Analysis of Proposed Federal Tax Legislation and Major Programs Affecting the Capital Formation Sector Office of Tax Policy Tax Foundation Incorporated 1875 Connecticut Avenue, N.W. Washington, D.C. 20009 April 2, 1981 Vol. II No. i INDIVIDUAL TAX REDUCTIONS AND SAVINGS INCENTIVES The 97th Congress will spend some time debating and undoubtedly enacting legislation designed to reduce the burden on individual taxpayers and to encourage taxpayers to save. Without any statutory changes, the Federal Government would take about $40 billion more in 1981 taxes on individuals, the bulk of the increase coming from the racheting effect of inflation-boosted income being taxed at increasingly greater marginal rates and from the previously enacted increases in social security taxes. The debate in 1981 will focus on using the Tax Code as a vehicle for prompting taxpayers to work harder and save more. This issue of the Federal Tax Program Evaluator will focus on a few of the alter- native tax reduction proposals available to Congress and continues the analysis of savings incentive programs. A. Individual Tax Reductions Page 1. 10% reduction in all marginal rates--first-year plan of Kemp-Roth. 2 2. 20% reduction in all marginal rates. 3 3. Inflation indexing, both brackets and exemptions. 5 B. Savings Incentives 4. Splitting the rate structures between personal service income and investment income and applying the lowest rates to the first dollars of each type of income (H.R. 713). 7 5. Expanding the Individual Retirement Account programs to allow anyone, regardless of private pension coverage to deduct up to (a) $2,000 or (b) $4,000 in income placed in a tax-free invest- ment account. 9 6. Indexing of the basis of capital gains for inflation (H.R. 1798). 12 7. Increasing the capital gains exclusion to 75% with a proportion- ally similar reduction for corporations (S. 75). 13 8. Doubling the $200/$400 exclusion of interest and dividends. 15 APPENDIX

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most