Analysis of proposals relating to broadening the base and lowering the rates of the income tax: scheduled for a hearing before the Committee on Finance,, on September 28-30, 1982
U.S. Government Printing Office, 1982 - Income tax - 35 pages
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ability to pay accounting activities actually additional adjusted after-tax allow amount approach argue assets basis bills bracket broadening capital capital gains comprehensive Congress considerations consumer consumption tax corporate corporate income costs create deduction designed discussed distortions distribution dividends double taxation earnings economic effect efficiency eliminate enacted equal equity example exclusions exemption existing expenses extent flat fringe benefits future consumption gains grandfather gross income homes imputed incentive included income tax increase indexing individual income tax inflation interest investment issues less limited losses lower marginal tax rates measure necessary percent period phase-in possible present problems progressive proposals rate schedule reduce relatively rent repeal require result retained rules saving shareholder substantial tax base tax burden tax liability tax system taxable income taxpayers tion transition treatment
Page 35 - The exclusion of up to $125,000 of gain on the sale of a home by a person aged 55 or over would apply to the normal tax but not the surtax.
Page 17 - It certainly would be possible to achieve base broadening by itself, although this would change the total revenue raised and the pattern of distribution by income class. Similarly, a proposal could be designed to reduce progressivity in the rate schedules while leaving the tax base, the distribution by income class, and total revenue unchanged. Marginal rates could be reduced or increased, making no changes in the. tax base, but total revenue obviously would change.
Page 13 - Although these studies are extremely difficult to perform for the reasons discussed above, there is some indication that future consumption may be stimulated sufficiently by increasing the after-tax return that total personal saving may increase modestly in response to such a change. The income tax also influences decisions about the particular forms in which taxpayers do their saving, which affects the allocation of capital in the economy. The first concern is that the income tax imposes heavier...