Review of Selected Aspects of the President's Tax Proposals: Hearing Before the Task Force on Tax Expenditures, Government Organization, and Regulation of the Committee on the Budget, House of Representatives, Ninety-fifth Congress, Second Session, February 23, 1978

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Page 6 - Medical and casualty expenditures should properly be deductible only when they are unusually large and have a significant impact on the taxpayer's ability to pay. The medical expense deduction originally met that standard. But, as a result of the changing relationship between medical costs and income, that standard is no longer satisfied. Substantial recordkeeping burdens and administrative problems can be eliminated through the proposed simplification of the deduction...
Page 13 - ... deductions for medical and casualty expenses will be combined, and a new "extraordinary expense" deduction will be available for medical and casualty expenses in excess of 10 percent of adjusted gross income. In the case of casualty losses, the excess over $100 will be included in this computation. Medical insurance premiums and medicines will be treated the same as other medical expenses. Medical and casualty expenditures should properly be deductible only when they are unusually large and have...
Page 31 - WAYS AND MEANS COMMITTEE Mr. PHILLIPS. Do you conceive yourself to be, as you said a moment ago. a sort of adjunct to the Ways and Means Committee ? Mr. MORGAN. The law says that, sir. The Tariff Commission was organized originally as an advisory agency for the Ways and Means Committee and the Senate Finance Committee in the field of...
Page 3 - While it is difficult to determine precisely when economic growth would slow, the underlying trends in the economy — together with the effects of fiscal policy — point clearly to a reduction in the pace of expansion later this year or early in 1979.
Page 12 - ... of that. By contrast, the $240 credit will provide a tax saving of $960 to a four-member family regardless of the income level. Due in large part to the new credit the tax-free level of income for a family of four will rise to $9,256 under the tax program as compared to $7,200 under current law.
Page 44 - ... profits to the DISC, and the taxation of one-half of eligible DISC income is deferred as long as these profits are invested in export related assets. DISC has proved to be a very inefficient and wasteful export subsidy in the current international monetary system. A recent Treasury study indicates that DISC may have contributed only $1 to $3 billion to US exports in 1974 — an increase of less than 3 percent in total exports — at a tax revenue cost of $1.2 billion. In the long run, even these...
Page 7 - ... include financial institutions that are functionally identical to a savings and loan association. The tax exemption provides them with an unfair financial advantage over their competitors. I propose that the percentage of exempt income be phased out over a 4-year period, and that credit unions be taxed in the same manner as mutual savings banks and savings and loan associations after 1982. Domestic International Sales Corporation (DISC) Business incentives form an integral part of my tax program....
Page 5 - The most fundamental change proposed in the individual income tax is the replacement of the $750 personal exemption and the general tax credit with a single per capita tax credit of $240.
Page 12 - The reforms whose primary objective is simplification are repeal of the deductibility of State and local gasoline taxes, sales taxes and miscellaneous taxes, the repeal of the deduction for political contributions and the revision of the deductibility of medical and casualty expenses. These proposals continue the simplification efforts of last year's Tax Reduction and Simplification Act. The percentage of taxpayers who take the Hat standard deduction will be increased from 76 to 84 percent.
Page 13 - Advancing beyond the tax shelter closing in the Tax Reform Act of 1976, the administration recommends that accelerated depreciation of structures other than low-income housing be phased out. Generally, the proposal would require taxpayers to depreciate buildings for tax purposes in equal annual charges over average tax lives now used for the various classes of structures. The tax program also includes extension of the "at risk...

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