Summary of Tax Reform Provisions in H. R. 3838 as Ordered Reported by the Senate Committee on Finance (Classic Reprint)

Summary of Tax Reform Provisions in H. R. 3838 as Ordered Reported by the Senate Committee on Finance (Classic Reprint)

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Excerpt from Summary of Tax Reform Provisions in H. R. 3838 as Ordered Reported by the Senate Committee on Finance The bill approved by the Senate Committee on Finance represents a major restructuring of the Federal income tax system. The bill nearly halves the top individual tax rate to 27 percent and reduces the top corporate tax rate by nearly one - third to 33 percent. The bill is estimated to be revenue neutral; over the next five years, the tax burden of individuals would be reduced by approximately $100 billion, while corporate taxes would increase by a similar amount. The reduction in tax rates is achieved by broadening the base of the corporate and individual income taxes through the elimination of various tax benefits and preferences allowed under present law. Many of the new provisions increase the tax base of upper - income individuals and allow a reduction in the top tax rate without altering the distribution of the tax burden. These provisions, such as strict new limitations on the use of investment losses to shelter other income and an expanded minimum tax, seek to ensure that high-income taxpayers cannot reduce their effective tax rates to disproportionately low levels. The bill is intended to simplify the tax system for nearly all Americans. The bill replaces the 15 tax brackets for individuals under present law with two rates percent and 27 percent. Over 80 percent of all taxpayers will have a top rate no higher than 15 percent. Large increases in the standard deduction (the zero bracket amount, under present law) and a near doubling of the personal exemption will eliminate the tax liability of approximately six million low-income individuals. Taxpayers will receive an average tax cut of over six percent in 1988, with low and middle-income taxpayers experiencing the largest percentage declines in tax liability. The following table shows the estimated average percentage reduction in tax liability by income group. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.show more

Product details

  • Paperback | 38 pages
  • 152 x 229 x 2mm | 64g
  • Forgotten Books
  • United States
  • English
  • , black & white illustrations
  • 0243118295
  • 9780243118298