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• <br />BOOK Co <br />eliminate federal revenue sharing and the issuance of <br />industrial revenue bonds. Emphasizing that these were <br />proposed,cutbacks, Commissioner Wodtke reviewed many of the <br />items listed below: <br />Comparison of Current Law <br />and Treasury Proposal Highlights <br />cm <br />1986 Current Law` <br />Treasury Pr000sal <br />INDIVIDUAL TAX RATES <br />14 rate brackets <br />3 rate brackets <br />from 11 to 501 <br />15, 25 b 359 <br />EXEMPTIONS <br />Self, spouse <br />511090• <br />$2,000 <br />Dependents <br />$1,090 <br />$2,000 <br />ZERO BRACKET AMOUNT <br />Single <br />Joint <br />$2,510 <br />$2,800 <br />Heaas of Household' <br />$3,710 <br />$2,510 <br />$3,800 <br />53,500 <br />INDEXED RATE BRACKETS, <br />Yes <br />Yes <br />EXEMPTIONS AND ZBA <br />' <br />PERSONAL DEDUCTIONS <br />Mortgage Interest <br />Yes <br />Yes, for principal <br />residences <br />Other personal interest <br />Yes <br />Limited to $5,000 <br />over investment income <br />Medical expenses <br />Yes (above 51 of <br />Yes tabove 59 of AGI) <br />AGI) <br />Charitable contributions <br />Yes <br />Yes (above 2$ <br />of AGI) but <br />no deduction for <br />unrealized gains on con- <br />tributed property. <br />State and local income tax <br />Yes <br />No <br />• Other State and local <br />Yes <br />axes <br />No, unless incurred in <br />income-producing activity. <br />TWO -earner decucti(;n <br />Yes <br />Vo <br />=4ER INDIVIDUAL <br />Earned Income Crad;_ <br />Yes <br />— <br />Yes, indexed <br />Child Care Credit <br />Yesl� <br />Deduc,.;oh <br />Unemployment Compensation <br />Taxed if AGI over <br />Taxed <br />S12,000 (S18,000 <br />if married) <br />Mockers' Compensation <br />Not taxed <br />Taxed, but <br />special cre%it i:)r aL�Wc:y <br />and disabled <br />Entertainment expenses <br />Deducted <br />No <br />Business meals and <br />' Travel Zxpenses <br />Deducted <br />Capped <br />Inccme shifting <br />to <br />to c:tildren <br />Permi=si5le <br />and <br />via trusts <br />cm <br />