Background and Issues Relating to Individual Income Tax Reductions

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U.S. Government Printing Office, 1981 - Income tax - 35 pages
 

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Page 22 - It should be noted that these figures do not take into account...
Page 27 - Thus, it is argued, reducing the marginal tax rate may encourage individuals to shift from less productive to more productive forms of saving. The second concern relates to the present law deduction for non-business interest.
Page 21 - If the individual with a 25-percent marginal rate invests in a security with a 10-percent return, the after-tax return would be 7.5 percent. Thus, the marginal tax rate affects the incentive to save rather than use the same resources for current consumption. The same reasoning may be used to show that marginal tax rates also...
Page 4 - Federal Individual Income Tax Rates Effective January 1, 1984 MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES: If taxable income is: Not over $3,400 Over...
Page 3 - Under prior law, the amount of the personal exemption was $750 for the taxpayer, his or her spouse, and each dependent whose gross income was less than $750 (unless the dependent is the taxpayer's child and is either under age 19 or a student). An additional exemption is provided for a taxpayer who is blind or age 65 or over. Prior law...
Page 26 - ... to an increase in the after-tax rate of return only if desired future consumption increases sufficiently to offset this effect. Whether this is, in fact, the case can be determined only by empirical studies. Although these studies are extremely difficult to perform...
Page 23 - The marginal tax rate is the tax rate applicable to the last dollar of income. The table shows the weighted average marginal tax rate for all tax returns, weighted by adjusted gross income.
Page 26 - ... sufficiently by increasing the after-tax return that total personal saving may increase modestly in response to such a change.
Page 12 - Aggregate Total and Percent of Income Tax Liability Under Present Law by Income Class (1981 Income Level...
Page 11 - GNP deflator between the third quarter of 1979 and the third quarter of 1980.

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