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Table 23. U.S. individual income tax: personal exemptions and lowest and highest bracket tax rates, and tax base for regular tax, tax years 1913-2011.

Table 23. U.S. Individual Income Tax: Personal Exemptions and Lowest
and Highest Bracket Tax Rates, and Tax Base for Regular Tax, Tax
Years 1913-2011

[Amounts are in dollars]

                              Personal exemptions [1]

                Single              Married
Tax year        persons             couples           Dependents

                  (1)                 (2)                 (3)

1913                  3,000               4,000                 N/A
1914                  3,000               4,000                 N/A
1915                  3,000               4,000                 N/A
1916                  3,000               4,000                 N/A
1917                  1,000               2,000                 200
1918                  1,000               2,000                 200
1919                  1,000               2,000                 200
1920                  1,000               2,000                 200
1921                  1,000           [4] 2,500                 400
1922                  1,000           [4] 2,500                 400
1923                  1,000           [4] 2,500                 400
1924                  1,000               2,500                 400
1925                  1,500               3,500                 400
1926                  1,500               3,500                 400
1927                  1,500               3,500                 400
1928                  1,500               3,500                 400
1929                  1,500               3,500                 400
1930                  1,500               3,500                 400
1931                  1,500               3,500                 400
1932                  1,000               2,500                 400
1933                  1,000               2,500                 400
1934                  1,000               2,500                 400
1935                  1,000               2,500                 400
1936                  1,000               2,500                 400
1937                  1,000               2,500                 400
1938                  1,000               2,500                 400
1939                  1,000               2,500                 400
1940                    800               2,000                 400
1941                    750               1,500                 400
1942                    500               1,200                 350
1943                    500               1,200                 350
1944               [11] 500          [11] 1,000            [11] 500
1945               [11] 500          [11] 1,000            [11] 500
1946                    500               1,000                 500
1947                    500               1,000                 500
1948               [14] 600          [14] 1,200                 600
1949               [14] 600          [14] 1,200                 600
1950               [14] 600          [14] 1,200                 600
1951               [14] 600          [14] 1,200                 600
1952               [14] 600          [14] 1,200                 600
1953               [14] 600          [14] 1,200                 600
1954               [14] 600          [14] 1,200                 600
1955               [14] 600          [14] 1,200                 600
1956               [14] 600          [14] 1,200                 600
1957               [14] 600          [14] 1,200                 600
1958               [14] 600          [14] 1,200                 600
1959               [14] 600          [14] 1,200                 600
1960               [14] 600          [14] 1,200                 600
1961               [14] 600          [14] 1,200                 600
1962               [14] 600          [14] 1,200                 600
1963               [14] 600          [14] 1,200                 600
1964               [14] 600          [14] 1,200                 600
1965               [14] 600          [14] 1,200                 600
1966               [14] 600          [14] 1,200                 600
1967               [14] 600          [14] 1,200                 600
1968               [14] 600          [14] 1,200                 600
1969               [14] 600          [14] 1,200                 600
1970               [14] 625          [14] 1,250                 625
1971               [14] 675          [14] 1,350                 675
1972               [14] 750          [14] 1,500                 750
1973               [14] 750          [14] 1,500                 750
1974               [14] 750          [14] 1,500                 750
1975            [14,26] 750       [14,26] 1,500            [26] 750
1976            [14,27] 750       [14,27] 1,500            [27] 750
1977            [14,27] 750       [14,27] 1,500            [27] 750
1978            [14,27] 750       [14,27] 1,500            [27] 750
1979             [14] 1,000          [14] 2,000               1,000
1980             [14] 1,000          [14] 2,000               1,000
1981             [14] 1,000          [14] 2,000               1,000
1982             [14] 1,000          [14] 2,000               1,000
1983             [14] 1,000          [14] 2,000               1,000
1984             [14] 1,000          [14] 2,000               1,000
1985          [14,30] 1,040       [14,30] 2,080          [30] 1,040
1986          [14,30] 1,080       [14,30] 2,160          [30] 1,080
1987             [30] 1,900          [30] 3,800          [30] 1,900
1988       [30,32,33] 1,950    [30,32,33] 3,900    [30,32,33] 1,950
1989       [30,32,33] 2,000    [30,32,33] 4,000    [30,32,33] 2,000
1990       [30,32,33] 2,050    [30,32,33] 4,100    [30,32,33] 2,050
1991          [30,32] 2,150       [30,32] 4,300       [30,32] 2,150
1992          [30,32] 2,300       [30,32] 4,600       [30,32] 2,300
1993          [30,32] 2,350       [30,32] 4,700       [30,32] 2,350
1994          [30,32] 2,450       [30,32] 4,900       [30,32] 2,450
1995          [30,32] 2,500       [30,32] 5,000       [30,32] 2,500
1996          [30,32] 2,550       [30,32] 5,100       [30,32] 2,550
1997          [30,32] 2,650       [30,32] 5,300       [30,32] 2,650
1998          [30,32] 2,700       [30,32] 5,400       [30,32] 2,700
1999          [30,32] 2,750       [30,32] 5,500       [30,32] 2,750
2000          [30,32] 2,800       [30,32] 5,600       [30,32] 2,800
2001          [30,32] 2,900       [30,32] 5,800       [30,32] 2,900
2002          [30,32] 3,000       [30,32] 6,000       [30,32] 3,000
2003          [30,32] 3,050       [30,32] 6,100       [30,32] 3,050
2004          [30,32] 3,100       [30,32] 6,200       [30,32] 3,100
2005          [30,32] 3,200       [30,32] 6,400       [30,32] 3,200
2006          [30,39] 3,300       [30,39] 6,600    [30,32,39] 3,300
2007          [30,39] 3,400       [30,39] 6,800    [30,32,39] 3,400
2008          [30,40] 3,500       [30,40] 7,000       [30,40] 3,500
2009          [30,40] 3,650       [30,40] 7,300       [30,40] 3,650
2010          [30,41] 3,650       [30,41] 7,300       [30,41] 3,650
2011          [30,41] 3,700       [30,41] 7,400       [30,41] 3,700

             Tax rates for regular tax--

                   Lowest bracket

                Tax            Taxable
             rate [2]          income
Tax year     (percent)        under-[3]

                (4)              (5)

1913                1.0            20,000
1914                1.0            20,000
1915                1.0            20,000
1916                2.0            20,000
1917                2.0             2,000
1918                6.0             4,000
1919                4.0             4,000
1920                4.0             4,000
1921                4.0             4,000
1922                4.0             4,000
1923            [5] 3.0             4,000
1924            [6] 1.5             4,000
1925          [7] 1.125             4,000
1926          [7] 1.125             4,000
1927          [7] 1.125             4,000
1928          [8] 1.125             4,000
1929          [8] 0.375             4,000
1930          [8] 1.125             4,000
1931          [8] 1.125             4,000
1932                4.0             4,000
1933                4.0             4,000
1934            [9] 4.0             4,000
1935            [9] 4.0             4,000
1936            [9] 4.0             4,000
1937            [9] 4.0             4,000
1938            [9] 4.0             4,000
1939            [9] 4.0             4,000
1940         [9,10] 4.4             4,000
1941           [9] 10.0             2,000
1942           [9] 19.0             2,000
1943           [9] 19.0             2,000
1944               23.0             2,000
1945               23.0             2,000
1946          [13] 19.0             2,000
1947          [13] 19.0             2,000
1948          [15] 16.6             4,000
1949          [15] 16.6             4,000
1950          [16] 17.4             4,000
1951               20.4             4,000
1952               22.2             4,000
1953               22.2             4,000
1954               20.0             4,000
1955               20.0             4,000
1956               20.0             4,000
1957               20.0             4,000
1958               20.0             4,000
1959               20.0             4,000
1960               20.0             4,000
1961               20.0             4,000
1962               20.0             4,000
1963               20.0             4,000
1964               16.0             1,000
1965               14.0             1,000
1966               14.0             1,000
1967               14.0             1,000
1968               14.0             1,000
1969               14.0             1,000
1970               14.0             1,000
1971               14.0             1,000
1972               14.0             1,000
1973               14.0             1,000
1974          [25] 14.0             1,000
1975               14.0             1,000
1976               14.0             1,000
1977          [28] 14.0        [28] 3,200
1978          [28] 14.0        [28] 3,200
1979          [28] 14.0        [28] 3,400
1980          [28] 14.0        [28] 3,400
1981       [28,29] 14.0        [28] 3,400
1982          [28] 12.0        [28] 3,400
1983          [28] 11.0        [28] 3,400
1984          [28] 11.0        [28] 3,400
1985          [28] 11.0    [28, 31] 3,540
1986          [28] 11.0     [28,31] 3,670
1987               11.0        [31] 3,000
1988       [34,35] 15.0    [31,35] 29,750
1989       [34,35] 15.0    [31,35] 30,950
1990       [34,35] 15.0    [31,35] 32,450
1991               15.0       [31] 34,000
1992               15.0       [31] 35,800
1993               15.0       [31] 36,900
1994               15.0       [31] 38,000
1995               15.0       [31] 39,000
1996               15.0       [31] 40,100
1997               15.0       [31] 41,200
1998               15.0       [31] 42,350
1999               15.0       [31] 43,050
2000          [36] 15.0       [31] 43,850
2001          [37] 10.0     [31,38] 6,000
2002               10.0       [31] 12,000
2003               10.0       [31] 14,000
2004               10.0       [31] 14,300
2005               10.0       [31] 14,600
2006               10.0       [31] 15,100
2007               10.0       [31] 15,650
2008               10.0       [31] 16,050
2009               10.0       [31] 16,700
2010               10.0       [31] 16,750
2011               10.0       [31] 17,000

             Tax rates for regular tax--

                   Highest bracket

                 Tax             Taxable
              rate [2]            income
Tax year      (percent)          over-[3]

                 (6)               (7)

1913                  7.0            500,000
1914                  7.0            500,000
1915                  7.0            500,000
1916                 15.0          2,000,000
1917                 67.0          2,000,000
1918                 77.0          1,000,000
1919                 73.0          1,000,000
1920                 73.0          1,000,000
1921                 73.0          1,000,000
1922                 58.0            200,000
1923             [5] 43.5            200,000
1924                 46.0            500,000
1925                 25.0            100,000
1926                 25.0            100,000
1927                 25.0            100,000
1928                 25.0            100,000
1929                 24.0            100,000
1930                 25.0            100,000
1931                 25.0            100,000
1932                 63.0          1,000,000
1933                 63.0          1,000,000
1934                 63.0          1,000,000
1935                 63.0          1,000,000
1936                 79.0          5,000,000
1937                 79.0          5,000,000
1938                 79.0          5,000,000
1939                 79.0          5,000,000
1940            [10] 81.1          5,000,000
1941                 81.0          5,000,000
1942                 88.0            200,000
1943                 88.0            200,000
1944            [12] 94.0            200,000
1945            [12] 94.0            200,000
1946           [13] 86.45            200,000
1947           [13] 86.45            200,000
1948           [15] 82.13            400,000
1949           [15] 82.13            400,000
1950           [16] 84.36            400,000
1951            [17] 91.0            400,000
1952            [18] 92.0            400,000
1953            [18] 92.0            400,000
1954            [19] 91.0            400,000
1955            [19] 91.0            400,000
1956            [19] 91.0            400,000
1957            [19] 91.0            400,000
1958            [19] 91.0            400,000
1959            [19] 91.0            400,000
1960            [19] 91.0            400,000
1961            [19] 91.0            400,000
1962            [19] 91.0            400,000
1963            [19] 91.0            400,000
1964                 77.0            400,000
1965                 70.0            200,000
1966                 70.0            200,000
1967                 70.0            200,000
1968           [20] 75.25            200,000
1969            [21] 77.0            200,000
1970           [22] 71.75            200,000
1971            [23] 70.0            200,000
1972            [24] 70.0            200,000
1973            [24] 70.0            200,000
1974         [24,25] 70.0            200,000
1975            [24] 70.0            200,000
1976            [24] 70.0            200,000
1977            [24] 70.0            203,200
1978            [24] 70.0            203,200
1979            [24] 70.0            215,400
1980            [24] 70.0            215,400
1981       [24,29] 69.125            215,400
1982                 50.0             85,600
1983                 50.0            109,400
1984                 50.0            162,400
1985                 50.0       [31] 169,020
1986                 50.0       [31] 175,250
1987                 38.5        [31] 90,000
1988         [34,35] 28.0     [31,35] 29,750
1989         [34,35] 28.0     [31,35] 30,950
1990         [34,35] 28.0     [31,35] 32,450
1991                 31.0        [31] 82,150
1992                 31.0        [31] 86,500
1993                 39.6       [31] 250,000
1994                 39.6       [31] 250,000
1995                 39.6       [31] 256,500
1996                 39.6       [31] 263,750
1997                 39.6       [31] 271,050
1998                 39.6       [31] 278,450
1999                 39.6       [31] 283,150
2000            [36] 39.6       [31] 288,350
2001            [37] 39.1    [31,38] 297,350
2002                 38.6       [31] 307,050
2003                 35.0       [31] 311,950
2004                 35.0       [31] 319,100
2005                 35.0       [31] 326,450
2006                 35.0       [31] 336,550
2007                 35.0       [31] 349,700
2008                 35.0       [31] 357,700
2009                 35.0       [31] 372,950
2010                 35.0       [31] 373,650
2011                 35.0       [31] 379,150

Footnotes

N/A--Not applicable.

[1] Personal exemption amounts were deducted at different points in
the tax computation, depending on the tax year. For some of the
earlier years, they were deducted only from the statutory "net
income" subject to the basic "normal tax," for other years, only from
the "net income" subject to the "surtax," and, for still other years,
from the "net income" subject to both normal tax and surtax.
(Footnote 2, below, includes a description of "normal tax" and
"surtax.") For more recent years, personal exemptions have been
deducted in computing "taxable income," the current tax base for
"regular" tax purposes.

[2] Tax rates shown in Table 23 are for the "regular" income tax,
i.e., for "normal tax" and "surtax," applicable to U.S. citizens and
residents. Therefore, the rates exclude provisions unique to
nonresident aliens. Tax rates exclude the effect of tax credits
(which reduce the tax liability), except as noted, and several
specific add-on or other taxes applicable to all or some tax years.
Excluded are the "war excess profits tax" (1917), "victory tax"
(1942-1943), Social Security "self-employment tax" (starting with
1951), tax under the "income averaging" provisions (1964-1986) and
under the farm income averaging provisions (starting with 1998), and
the "recapture taxes" resulting from having to recompute and pay back
certain tax credits in later years (starting with 1963), the "maximum
tax" on "earned income" or on "personal service income" (1971-1981),
the "minimum tax" on "tax preferences" (1970-1983), and the
"alternative minimum tax" on "tax preferences" (starting with 1979).
Also excluded are such other taxes as the tax on recipients of
accumulation distributions of trusts (starting with 1954) and the
"special averaging tax" or "multiple recipient special averaging tax"
on recipients of lump-sum distributions from qualified retirement
plans (starting with 1974). In addition, Table 23 excludes taxes
associated with the preferential treatment of capital gains, starting
with 1922 (although certain gains received preferential treatment as
early as 1918). At various times, these treatments have taken the
form of special tax rates; special definitions; different asset
holding periods; ceilings on taxes; and exclusions from income.
Included among these special treatments were "alternative tax"
(1938-1986) and its variations for the earlier years, although all of
these taxes were in some way tied to the structure for regular tax.
Until 1948, a single set of tax rates applied to all taxpayers,
regardless of marital or filing status, and married couples filing joint
returns were taxed on the combined income of each spouse. However, a
second, lower set of rates was introduced, starting with 1948, for
married couples filing jointly. (To simplify the Table 23 presentation
for these more recent years, only the lowest and highest tax rates for
married persons filing jointly are shown.) Under this change, the
combined tax of husband and wife became twice the combined tax that
would have applied if their combined "taxable income" ("net income"
for years before 1954) were cut in half. Thus, taxpayers using the
joint return filing status "split" their incomes for tax purposes, in
effect doubling the width of their taxable income (or net income)
size "brackets." The lowest and highest tax rate brackets shown in
columns 4 and 6 in Table 23 are, therefore, the brackets for married
couples filing jointly that result from taking into account this
doubling of the bracket widths. Starting with 1952, a third set of
rates was introduced (not shown) for "heads of household," i.e., for
unmarried individuals who paid over half the cost of maintaining a
home for a qualifying person (e.g., a child or parent), or for
certain married individuals who had lived apart from their spouses
for the last 6 months of the tax year. This filing status was
liberalized, starting with 1970, and provides approximately half the
advantage of the income-splitting described above. Starting with
1954, the full benefits of income-splitting allowed married couples
filing jointly (i.e., the same tax rates and taxable income brackets)
were extended to a new, fourth filing status, "surviving spouse"
(i.e., individuals widowed for 1 to 2 years following the death of a
spouse, provided they had a dependent child and had not remarried).
The remaining filing status was for "single persons," who used the
rates formerly applicable to taxpayers in general. However, these
latter rates were moderated, starting with 1969, by limiting the tax
so that it would not exceed 20 percent more than the tax on married
couples filing jointly. One result of the 1969 law change was that
certain married couples filing jointly had to pay more tax than they
would have paid if each spouse had filed separately. To help mitigate
this effect, a special deduction in computing adjusted gross income
was allowed for 1982-1986 for two-earner couples filing jointly. This
deduction was initially 5 percent of the lesser of $30,000 or the
"earned income" of the spouse with the lesser earnings. The
percentage was increased to 10 percent, starting with 1983. The
deduction provision was repealed, starting with 1987, when new, lower
rates and a reduced number of tax brackets began. For tax years
preceding 1954, the lowest tax rate, as shown in Table 23, was either
the rate for the basic "normal tax" (if there was just one rate for
normal tax) or the lowest of the several rates for "normal tax" (if
there was more than one rate for normal tax). The highest tax rate
was the sum of the uppermost of the graduated rates (if any) for
normal tax, plus the uppermost of the additional, graduated "surtax"
rates, provided that both rates were applied to the same income. For
example, for 1932, there were two graduated rates for normal tax, 4
percent (on the first $4,000 of income) and 8 percent (on all income
over $4,000), and graduated rates for "surtax" that ranged from 1
percent to 55 percent. In Table 23, the lowest rate for 1932 is,
therefore, shown as 4 percent (the lower of the two normal tax rates)
and the highest rate as 63 percent (the sum of the 8-percent higher,
graduated rate for normal tax on income over $4,000, plus 55 percent,
the highest of the graduated, surtax rates, on income over $1
million). As another example, for 1941, there was just one rate for
normal tax, 4 percent, but it applied to all income. The lowest of
the surtax rates, 6 percent, was applied to all income under $2,000,
so that income under $2,000 was taxed at both the 4-percent normal
tax rate and the 6-percent surtax rate. Therefore, the lowest rate
shown in Table 23 for 1941 is 10 percent, the sum of these two tax
rates. The highest rate is the sum of the 4-percent normal tax on
total statutory "net income," plus the highest graduated surtax rate,
77 percent on income over $5 million, so that income over $5 million
was taxed at 81 percent, the sum of the two rates. For tax years
starting with 1954, normal tax and surtax rates were, in effect,
combined into a single rate structure.

[3] The definition of the income base (and, thus, the tax "bracket"
boundaries) to which the tax rates were applied differs over the
years, depending on how the following were determined and figured:
statutory adjustments to or exclusions from income; personal
exemptions; itemized deduction expenditures, which were sometimes
described as income "credits"; standard deductions; the various
thresholds and ceilings; and statutory "taxable income" (and its
predecessor "net income"). Therefore, the lowest and highest taxable
income amounts, as shown in Table 23, are not comparable for all
years, and the amounts described as for statutory taxable income for
tax years preceding 1954 are actually for statutory net income.
(Statutory net income was income after subtracting deductions but,
for most years, was before subtracting personal exemptions. Statutory
taxable income was after subtracting both deductions and personal
exemptions. Taxable income is the tax base for recent years. Net
income required certain adjustments to arrive at the tax base,
depending on whether the income was subject to normal tax, surtax, or
both). See also footnote 2, above.

[4] For 1921-1923, the personal exemption amount for married couples
(column 2) decreased to $2,000 if statutory "net income" exceeded
$5,000.

[5] For 1923, the tax rates shown (columns 4 and 6) are after a
25-percent statutory credit or refund.

[6] For 1924, the lowest tax rate (column 4) is after reduction by an
"earned income credit," equal to 25 percent of the "normal tax" on
the first $5,000 of total statutory "net income" and the normal tax
on the first $10,000 of "earned net income," but limited to 25
percent of the normal tax on total net income.

[7] For 1925-1927, the lowest tax rate (column 4) is after reduction
by an "earned income credit" equal to 25 percent of the total tax on
the first $5,000 of total statutory "net income" and the total tax on
the first $20,000 of "earned net income," but limited to 25 percent
of the total tax on earned net income (not to exceed 25 percent of
the sum of "normal tax" on total net income plus the "surtax" on
earned net income.)

[8] For 1928-1931, the lowest tax rate (column 4) is after reduction
by an "earned income credit" equal to 25 percent of the total tax on
the first $5,000 of total statutory "net income" and the total tax on
the first $30,000 of "earned net income," but subject to the same
limitations described in footnote 7, above. For 1929 only, there was
a special reduction in normal tax rates as provided for in a joint
resolution of Congress.

[9] For 1934-1943, the tax rate (column 4) excludes the effect of an
"earned income credit," allowed as a deduction equal to 10 percent of
the first $14,000 of "earned net income" (before credit) and the
first $3,000 of total statutory "net income" (before credit), but
limited to 10 percent of earned net income (not to exceed 10 percent
of total net income).

[10] For 1940, tax rates (columns 4 and 6) include "defense tax,"
computed as 10 percent of the total "regular" tax, but limited to 10
percent of statutory "net income" in excess of the total regular tax.

[11] For 1944-1945, the personal exemption amounts (columns 1-3) were
for "surtax" purposes only. The exemption for basic "normal tax"
purposes was $500 per tax return, augmented by the "earned income" of
the spouse, up to $500, on joint returns.

[12] For 1944-1945, the highest tax rate (column 6) was subject to a
maximum effective rate limitation equal to 90 percent of statutory
"net income."

[13] For 1946-1947, tax rates (columns 4 and 6) are the effective
rates after a statutory 5-percent reduction of combined "tentative
normal tax and surtax." The highest rate (column 6) was subject to a
maximum effective rate limitation equal to 85.5 percent of statutory
"net income."

[14] For 1948-1986, in addition to the personal exemptions (columns
1-2), there were additional personal exemptions for blind taxpayer(s)
and for taxpayers (s) age 65 or over.

[15] For 1948-1949, tax rates (columns 4 and 6) are the effective
rates after statutory reductions ranging from 17.0 percent of the
first $400 of combined "tentative normal tax and surtax" to 9.75
percent of combined tentative normal tax and surtax over $100,000.
The highest tax rate (column 6) was subject to a maximum effective
rate limitation equal to 77.0 percent of statutory "net income."

[16] For 1950, tax rates (columns 4 and 6) are the effective rates
after statutory reductions ranging from 13.0 percent of the first
$400 of combined "tentative normal tax and surtax" to 7.3 percent of
combined tentative normal tax and surtax over $100,000. The highest
tax rate (column 6) was subject to a maximum effective rate
limitation equal to 87.0 percent of statutory "net income."

[17] For 1951, the highest tax rate (column 6) was subject to a
maximum effective rate limitation equal to 87.2 percent of statutory
"net income."

[18] For 1952-1953, the highest tax rate (column 6) was subject to a
maximum effective rate limitation equal to 88.0 percent of statutory
"net income."

[19] For 1954-1963, the highest tax rate (column 6) was subject to a
maximum effective rate limitation equal to 87.0 percent of statutory
"taxable income."

[20] For 1968, the highest tax rate (column 6) includes a Vietnam
Wfor surcharge equal to 7.5 percent of tax (as defined for this
purpose). However, this surcharge did not apply to "regular" tax
generated at the lowest rate.

[21] For 1969, the highest tax rate (column 6) includes a Vietnam
Wfor surcharge equal to 10 percent of tax (as defined for this
purpose). However, this surcharge did not apply to "regular" tax
generated at the lowest rate.

[22] For 1970, the highest tax rate (column 6) includes a Vietnam
Wfor surcharge equal to 2.5 percent of tax (as defined for this
purpose). However, this surcharge did not apply to "regular" tax
generated at the lowest rate.

[23] For 1971, "earned net income" was subject to a "maximum tax" of
60 percent (not shown in column 6).

[24] For 1972-1981, "earned net income" (broadened to become
"personal service net income" after 1976) was subject to a "maximum
tax" of 50 percent (not shown in column 6).

[25] For 1974, tax rates (columns 4 and 6) do not take into account a
statutory rebate of 10 percent of total income tax after credits. In
general, the minimum rebate was $100 and the maximum, $200, but could
not exceed the tax liability.

[26] For 1975, a $30-per-capita tax credit was allowed in addition to
the personal exemptions shown in columns 1-3.

[27] For 1976-1978, a tax credit was allowed, in addition to the
personal exemptions shown in columns 1-3, that was equal to the
larger of $35 per capita or 2 percent of the first $9,000 of
statutory "taxable income."

[28] For 1977-1986, in order to help preserve the conceptual
comparability of the amounts shown with those for earlier and later
years, the lowest tax rates in column 4 and the lowest "taxable
income" amounts in column 5 exclude the so-called "zero tax rate" and
the "zero bracket amount," which were unique to the tax computation
for these 10 years.

[29] For 1981, tax rates (columns 4 and 6) are after a 1.25-percent
statutory tax credit.

[30] Starting with 1985, the personal exemption amounts (columns 1-3)
reflect annual adjustments for inflation, using the U.S. Department
of Labor Consumer Price Index for Urban Consumers ("CPI-U").

[31] Starting with 1985, tax "bracket" boundaries (columns 5 and 7)
were indexed for inflation, using the U.S. Department of Labor
Consumer Price Index (as described in footnote 30).

[32] Starting with 1988, the amount eligible to be deducted for
personal exemptions (columns 1-3) was phased out for certain
high-income taxpayers. For 1988-1990, this was accomplished as part
of the tax computation (see footnote 34, below).

[33] For 1988-1990, excludes the effect on certain high-income
taxpayers of the phaseout of the amount deductible for personal
exemptions (columns 1-3).

[34] For 1988-1990, the tax rates (columns 4 and 6) exclude the
effects on certain high-income taxpayers of the phaseout both of the
benefit of the 15-percent tax rate (compared to the 28-percent rate)
and the amount deductible for personal exemptions. This phaseout was
accomplished by imposing an additional, 5-percent tax on income above
certain levels, based on filing status, thus creating a "temporary"
33-percent tax rate. At the point where the taxpayer had completely
phased out the two benefits by use of the 33-percent rate, the tax
rate on any remaining taxable income above the phaseout range
returned to 28 percent (see also footnote 35). As Table 23 shows,
beginning with 1991, this phaseout was replaced by including an
additional, 31-percent, graduated rate for taxable incomes above
certain levels. Two other, higher, graduated rates were subsequently
added, starting with 1993, the higher of which is shown in Table 23.

[35] For 1988-1990, the 15-percent tax rate (column 4), which applied
to the first $29,750 of statutory "taxable income" (column 5),
gradually increased to the top "brackets" rate, 28 percent (column
6), when taxable income (included in column 7) reached between
$71,900 and $149,250. This was the range at which the 15-percent rate
was phased out for certain high- income taxpayers, all of whose
incomes were then effectively taxed at the higher 28-percent rate
through use of the "temporary" 33-percent rate (see footnote 34,
above, for additional information). The boundaries of the phaseout
range were adjusted for inflation for 1989-1990, although the top tax
rate on the taxable income above that covered by the phaseout range
remained 28 percent. Therefore, the top taxable income and top tax
bracket rate shown in Table 23 for 1988-1990 do not take into account
the higher, 33-percent, "temporary" phaseout rate.

[36] For 2000, the tax rates (columns 4 and 6) do not reflect a
special statutory refund, partially offset for 2001, of between $300
and $600, depending on the size of income tax for 2000 and filing
status. See also footnote 37, below

[37] For 2001, the tax rates (columns 4 and 6) do not reflect a
5-percent tax credit of up to $300, $500, or $1,000, depending on the
filing status. This credit effectively reduced the lowest rate on the
income shown in column 5 from 15 percent to 10 percent, in lieu of an
explicit 10-percent rate. However, the credit was reduced by the
amount of the special statutory refund made in 2001 (based on tax for
2000), described in footnote 36, above. The 10-percent rate was only
for dependents.

[38] For the change in the lowest tax "bracket" boundary (columns 5
and 7) for 2001, see footnotes 36 and 37, above.

[39] For 2006-2007, the phaseout of the personal exemption was
reduced by one-third (to a minimum of $1,100 per exemption for 2006,
$1,133 for 2007).

[40] Starting with 2008, the phaseout of the personal exemption was
reduced by two-thirds (to a minimum of $2,333 per exemption in 2008
and $2,433 per exemption in 2009).

[41] Starting with 2010, the phaseout of the personal exemption was
eliminated.

SOURCE: Advisory Commission on Intergovernmental Relations,
Significant Features of Fiscal Federalism, Volume I, Budget Processes
and Tax Systems, 1995, September 1996 (based, in part, on Tax
Foundation, Facts and Figures on Government Finance, 1988-89 edition,
1988); Pechman, Joseph A., Federal Tax Policy, fifth edition, The
Brookings Institution, 1987 (based on relevant public laws and
reports prepared by the Congressional Joint Economic Committee,
including The Federal Revenue System: Facts and Problems, 1961, and
The Federal Tax System: Facts and Problems, 1964); Statistics of
Income-Part I (in particular, the historical synopses of laws
included as appendices in the reports for 1949-1953) and Statistics
of Income-Individual Income Tax Returns (annually, for 1954-1988);
and relevant public laws and reports issued by the Congressional
Joint Committee on Taxation for subsequent years, as well as reports,
such as Overview of the Federal Tax System for 1990, 1991, and
1994, Committee on Wfoys and Means, U.S. House of Representatives, and
reports issued by the Congressional Joint Committee on Taxation for
subsequent years, including Overview of Present Law and Economic
Analysis Relating to Marginal Tax Rates and The President's
Individual Income Tax Rate Proposals, 2001.
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Title Annotation:Selected Historical and Other Data
Publication:Statistics of Income. SOI Bulletin
Date:Mar 22, 2012
Words:5363
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