Under the Tax Reform Act of 1986 (H.R. 3838) there would be only two statutory marginal tax rates for individuals, 15 and 28 percent. In addition to reducing statutory marginal tax rates, H.R. 3838 would phase out certain tax provisions over various income ranges. These phaseout provisions would produce an effective marginal tax rate schedule considerably different from the statutory schedule. This paper describes the phaseout provisions contained in H.R. 3838 and analyzes their effects on marginal tax rates.,Abstract -- Phaseout of the Earned Income Tax Credit (EITC) -- Phaseout of Deductible IRA Contributions -- Phaseout of the 15 Percent Tax Rate Bracket -- Phaseout of Losses from Passive Activities -- Phaseout of the Personal Exemption -- Summary.,CRS 86-912 E,"September 26, 1986.",SuDoc# LC 14. 18/3

Estimates how that over its first five years, the Tax Reform Act of 1985 (HR 3838) would be revenue neutral, with a reduction in revenue from the individual income tax just offset by an increase in revenue from the corporate income tax. This report describes the major changes in the individual and corporate income tax systems that would produce these revenue patterns. Notwithstanding the five-year revenue estimates, the report concludes that the bill would not significantly increase the tax burden on corporate-sector income. Further, in the long-run, the bill may lose tax revenue compared to revenue that would be generated under the current tax system.,Abstract -- Introduction and Summary -- HR 3838's Effect on Tax Revenues. Aggregate Revenue Effects ; Revenues from Provisions Affecting Individuals ; HR 3838 and Revenues from the Corporate Income Tax ; Summary -- Would HR 3838 Shift the Tax Burden from Individuals to Corporations? -- The Long-Run Revenue Effect of HR 3838.,David L. Brumbaugh, Analyst in Public Finance and Gregg A. Esenwien, Economic Analyst, Economics Division.,CRS 86-586 E,"March 10, 1986.",SuDoc# 14. 18/3