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 |
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97th Congress ability to pay adjusted gross income after-tax income after-tax return argue base broadening bills discussed capital gains charitable comprehensive income tax Congress consumption tax corporate and individual corporate income tax corporate tax corporate-source income costs definition of income distortions double taxation earning income economic efficiency eliminate enacted exclusions Expanded income flat rate fringe benefits future consumption grace period grandfather clause incentive incentive stock options included income class income from capital income tax base increase indexing individual income tax inflation investment income issues itemized deductions marginal rates marginal tax rates measure pay taxes percent personal exemption present law problems progressive rate progressive tax rate schedule Rate Tax repeal retained earnings revenue saving substitution effect Tax Act tax burden tax credits tax liability tax policy tax rules tax system taxable income taxation of dividends taxpayers with equal tion transition rule trillion unrealized income vertical equity zero bracket amount
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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 11 - Labor Supply," in Henry J. Aaron and Joseph A. Pechman, eds., How Taxes Affect Economic Behavior (Washington, DC: Brookings Institution, 1981), p.
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...