A Progressive New System with a Rebate to Boot

The table below spells out some of the pocketbook benefits of President Ford's proposed income tax cuts.

The figures assume that the taxpayer itemizes his deductions and subtracts 17% of his gross income -- which is the national average for itemizers -- before calculating his taxes. A further assumption is that married couples file joint returns.

In many respects, the new tax structure would be more equitable than the present system. People in all income groups would pay less in the future than in the recent past; but those with lower incomes would get larger reductions than more affluent people. In addition to col lecting one-shot rebates, a childless couple earning $8,000 would pay 23% less in taxes this year and in future years than in 1974; but a couple earning $40,000 would enjoy a net reduction of only 1.5%.

INCOME 1974 TAX BEFORE REBATE REBATE NET 1974 TAX 1975 TAX

SINGLE TAXPAYER

$ 8,000 $ 1,086.90 $ 130.43 $ 956.47 $ 918.00

12,000 1,892.50 227.10 1,665.40 1,702.50

17,000 3,024.40 362.93 2,661.47 2,834.40

30,000 6,850.00 822.00 6,028.00 6,660.00

40,000 10,515.00 1,000.00 9,515.00 10,325.00

MARRIED TAXPAYERS, NO DEPENDENTS

8,000 836.60 100.39 736.21 643.80

12,000 1,481.20 177.74 1,303.46 1,271.20

17,000 2,412.50 289.50 2,123.00 2,202.50

30,000 5,468.00 656.16 4,81 1 .84 5,332.00

40,000 8,543.00 1,000.00 7,543.00 8,4 1 3.00 MARRIED TAXPAYERS, TWO DEPENDENTS

8,000 558.80 67.06 491.44 396.00

12,000 1,182.40 141.89 1,040.51 953.20

17,000 2,064.20 247.70 1,816.50 1,854.20

30,000 4,988.00 598.56 4,389.44 4,837.00

40,000 7,958.00 954.96 7,003.04 7,828.00

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