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4 TABULATIONS FROM THE TREASURY TAX 

REFORM DATA BASE 

James R. Nunns 

I. INTRODUCTION 

This paper presents tabulations from the Treasury tax reform data base. 

This data base was the basic starting point for both the Treasury Department's 

and the Joint Committee on Taxation's analyses of the distributional and 

revenue consequences of the individual income tax provisions of the Tax Reform 

Act of 1986 (TRA). 

The first section of the paper provides a brief description of how the tax 

reform data base was constructed. It covers the basic sources of data; file 

reduction. extrapolation. alignment and merging; and the imputation of 

additional data items. The second section of the paper provides a description 

of the tabulations, as welJ as the tabulations themselves. The tabulations 

are divided into two sets. The first set covers major tax variables under 

1983 law and post-tax reform law ( 1988 law). The data are for tax returns of 

filers classified by adjusted gross income class. There are four tables, 

covering all returns, joint returns. returns of itemizers, and returns of 

joint itemizers. The second set of tabulations, which consists of a single 

table, shows the major items in economic income, for families. by economic 

income class. 

II. CONSTRUCTION OF THE TAX REFORM DATA BASE 

This section provides a brief description of how the tax reform data base 

was constructed.

1 The starting point was the Statistics of Income (SOl) 

.stratified random sample of approximately 144.000 individual income tax 

returns filed for 198 I. The SOl file contains extensive data from Forms 

The author is indebted to James M. Cill<e. who puformed all of the computer tabulations for t/r(• 

paper and made ustful comments on the papt!r. The awhor is also grateful to Susan C. N(•/son . 

wlto reviewed both the tabulations and the text. 

101 
102 James R. Nunns 

I 040, I 040A, and supporting forms and schedules. Data from the Social 

Security Administration on the age, sex, and social security earnings of each 

sample return were appended to the file. The file was then reduced to 

approximately 75,000 returns, using an optimal cluster sampling procedure. 

The reduction was done to reduce the computational time of tax model runs. 

The data were first modified by imputing itemized deductions to nonitemizers (in order to be able to simulate changes in itemized deductions), and to 

impute the lesser earning spouse's share of wages and salaries (to simulate 

the second-earner deduction, which was not in effect in 1981). The data were 

then extrapolated to 1983 levels. The extrapolation was done in two stages. 

The first, meant to reflect uniform economic growth and inflation, changed 

return weights and dollar amounts by fixed proportions. In the second stage, 

weights were changed differentially in order to hit separately determined 

targets for key variables, including the size distribution of adjusted gross 

income (AGI). 

Data on nonfilers, nontaxable income sources, and the demographic 

characteristics of the population, were taken from the Current Population 

Survey (CPS) conducted annually by the Bureau of the Census. The 50,000 

record CPS file was first extrapolated from 1982 (the latest year then 

available) to 1983. Welfare payments received and the number of recipients 

were simulated based on household characteristics and eligibility requirements 

in 1983, and other transfer payments were corrected for nonreporting and 

underreponing to hit national aggregates. Applying tax filing rules to each 

person age 16 or over in each household, potential tax filing units were 

constructed on the CPS file. At this stage, the CPS file was divided between 

potential filers (age 16 and over) and potential nonfilers. 

Before merging the SOl and CPS files, it was necessary to "align" them. 

There were two parts to this alignment. First. additional CPS filers were 

created from CPS nonfilers in order to make the (weighted) number of CPS 

filers match the (Weighted) number of SOl tax returns (for filers age 16 and 

over). Second, both the SOl and CPS files were corrected for underreporting 

and nonreporting of major sources of income. 

The SOl filers age 16 and over and CPS filers (by construction, age 16 or 

over) were then statistically merged, based on a common set of core variables. 

CPS nonfilers were then appended to this merged file, and the file recombined 

into families (based on CPS family identifiers). Finally, SOl filers aged 

under 16 were merged with families having appropriate income and demographic 

characteristics. 

At this point, the data base contained approximately 198,000 records 

representing 122 million potential tax units, of which 96 miJiion were filers 

and 26 million nonfilers. The data base also represented the universe of 91 

miJiion families in the U.S. in 1983. Each record contained approximately 500 

data items based on tax return, SSA. and CPS data. 

The final step in constructing the tax reform data base was to impute some 

250 additional variables to the file. These variables included employerprovided fringe benefits, the imputed rental value of owner-occupied housing. 

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Tabulations from the Tax Refonn Data Base I 03 

detail on capital gains, tax-exempt interest received, earnings on pensions 

and life insurance, shares of pre-tax corporate income, and various 

consumption items. Among other uses, many of the imputations were necessary 

to construct the "economic income" classifier used by the Treasury in 

distributional analyses. 

III. TABULATIONS 

All of the tabulations presented here are from the tax reform data base, 

which contains data at 1983 levels. The following discussion is in the same 

sequence as the tabulations: the 1983 and 1988 law tables by AGI of tax 

returns and the 1983 table by the economic income of families. 

A. 1983 and 1988 Law Tables 

There are four tables covering I 983 and 1988 law: Table 4. J A. for all 

returns: Table 4 .18, for all joint returns: Table 4.2A, for all itemizer 

returns; and Table 4.28, for returns of joint itemizers. Conceptually, the 

1983 taw figures presented in these four tables should match corresponding 

figures in the SOl publication, Individual Income Tax Returns 1983. As 

indicated above, however, the tax reform data base was constructed from the 

1981 SOl file, and extrapolated to 1983 levels following a reduction in the 

file. Therefore. the 1983 law figures presented here do not match exactly 

those in the SOl publication, although the total value of major variables and 

the distribution of AGI. which were targeted in the extrapolation process, 

match fairly closely. 

The 1988 law figures in these tables reflect the effect of the TRA at the 

1983 level and distribution of income, and under the assumption of static 

behavior (i.e., no behavioral change). Using 1983 as the income year has 

several implications. Shifts in the size distribution of income and in the 

mix of income sources within income classes between 1983 and 1988 are not 

captured in the tabulations. These 1983-88 changes may be particularly 

important in anaJyzing certain provisions of the TRA such as those affecting 

capitaJ gains and passive losses, for which the 1983-88 changes were quite 

large. Further, 1988 levels of tax parameters such as the standard deduction, 

exemptions. tax brackets. and phaseout ranges for the earned income credit. 

lRAs. the 15 percent bracket, and exemptions are all deflated to 1983 levels 

using the consumer price index (CPI-U). This deflation gives the conceptually 

correct real value of tax parameters, but to the extent of real growth between 

1983 and 1988 may obscure the relative effect on taxpayers of such provisions 

as the phaseout for deductible IRAs. 

The assumption of static behavior is intentional in these tabulations. 

since different analysts may want to make differing behavioral assumptions.

2 

Further, behavioral adjustments appropriate for 1988 would generally not .be 

appropriate for other years, so incorporating such adjustments in the data 

might limit their usefulness. However, it is important to recognize that 
Table 4. 1A ALL RETURNS: Gross Income, Adjustments, Deductions, ~ Exemptions, Taxable Income, and Taxes Under 1983 and 1988 Law '-

(1983 Level and Distribution of Income) 3 

~ Business Income Capiiil Gains 

~& ?0 Salaries lntemt Dividends in AGI or Loss in AGI P~nsions in AGI 

Number Num r Number Number Number Number Number z 

AGI of of of of of of of § Oass• Returns Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount 

(000) (I) (2! !3~ !4! ~~! !6~ p~ !8) !9! (10) (II) (12) (13) In = 

(Num r Of Returns In 000, AmountS In S minions) 

1983 Law 

Under 10 6-47 28.943 149,47.5 11.832 20 ,.5.58 2. 107 3,696 2 ,667 (286) 1.620 4,.273 2 ,425 8,832 

10 1.5 13,907 11 .740 143,294 6 ,083 16 ,460 1,016 1,84.5 1.186 4,433 7.57 1.025 1.864 11,480 

I.S 20 10.836 9 ,462 160,.580 .5 ,431 14 ,276 1.004 2,724 1,128 .5 .161 787 994 1,301 9 ,841 

20 • 30 16.466 1.5. 119 367 .3.59 9 .990 23,740 1,828 4,n2 1.898 9 .36.5 1.66.5 1,82.5 1,484 12,653 

30 • .so 1.5,3.511 14.286 .518 .333 11 .644 3.S.7.S.S 2 .721 8.3~ 1.9.57 1.5,280 2.403 .5.234 1.631 17,119 

.so • 100 4 .293 3.798 208.3911 3.830 25,.546 1.799 10,767 791 1.5,094 1,624 6 ,882 .520 7.892 

100 . 200 623 498 49,.527 60.5 9 ,.598 427 6,640 1.58 6,291 410 .5,547 76 1,36.5 

200 & Over 161 130 781 1.59 7 ,871 130 8,427 4.5 9,937 126 18 .5~ 17 632 

Total 96,293 83,976 1,631.74.5 49,.574 1.53.803 11 .032 47 .lOS 9 .830 6.5.276 9.392 44,37.5 9 ,317 69,814 

1988 Law 

Ull\ler 10 3.5.166 29.079 149,860 11 ,832 20 • .5.58 2 ,94.5 3,998 2.669 (28.5) 1 • .533 11,011 2,943 11 ,6 12 

10 l.S 13,969 II, 740 143.294 6,083 16.460 1,473 2,029 1,188 4 ,433 7.57 2,756 2.006 12,697 

l.S 20 10.8.50 9 .462 160 . .580 .5 .431 14,276 1.438 2.891 1.128 .5 ,161 786 2,7.59 1,380 10,426 

20 . 30 16.474 1.5.119 367,3.59 9.990 23.740 2,896 .5,102 1,898 9.36.5 1.66.5 .5.454 ~38 13,490 

30 • so 1.5,363 14.286 .518,333 11,644 3.S,7.S.S 4.337 8.923 1,9.57 1.5,280 2.408 13.979 1,721 18,021 

so . 100 4 .293 3 .798 208.398 3.830 25 . .546 2.268 11 .138 791 1.5.094 1,62.5 18,111 56.5 1.444 

100 • 200 623 498 49..527 60S 9 • ..598 47.5 6 ,724 IS II 6,291 411 14, 112 80 1.448 

200 & Over 161 130 781 1.59 7 ,871 139 8,4.52 4.5 9 ,937 126 46.414 II 712 

Total 96.900 84.111 1.632,130 49.~74 1.53.803 1.5.971 49,2.58 9,834 6.5,276 9.312 114,j97 10,2.58 76,8..51 

- .. - .. ~ • • ... - • • • .. .. • .. .. • 
.. .. .. .. • ... • .. .. .. .. .. .. .. • - .. • 

Table 4 .1A ALL RETURNS (continued) 

NetRents. Royalties, SOCial security Employee 

Partnership, etc . . Benelits Other Total Business Two-Earner 

and Farm Income in AGI Gross Income Gross Income Moving Ex~ se Ex~ se Deduction 

AGI No. of No. of No. of No. ot No. of No. of No.Or 

Oass .. Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount 

(000) (14) (IS) (16) (1 7) (18) (19! ~) (212 (22) 

(Number of Returns in . Amounts in S miUions) 

(23) (24) (2S) (26) (27) ~ CT 

1983 Law c 

-r» 

UnJcr 

10 -

10 

15 

3

1.329 

.047 (:!!!,006) 

(529) 

1,849 

1,649 

(9,

1,084 

1116) 34.594 

13.907 179

149.

.

347 

090 296 

199 263 

450 

SO

717 

l 

1.642 

1,352 

1,

679 

195 645 

241 -

6' 

::s IS :!0 1.354 (490) 2,266 2,378 10.836 195,461 215 309 882 1,705 1,754 1,248 (I> 

20 - 30 2.4!!0 (362) S.046 5,466 16,466 424.814 347 720 1.728 3,22S 5,116 4,827 ~ 30 so 3,070 (16) 6 ,089 5,521 15,358 605,551 324 1,054 2.163 4,428 7,o63 8,727 0 

so 100 1,645 3,821 1,719 2,992 4,293 281 ,389 123 62S 749 1,997 1,704 2,485 3 

100 - .200 446 5.034 249 1,223 623 85.224 27 221 98 526 129 217 

200 & Over 137 7,407 75 991 161 88.639 3 31 19 157 27 56 -:r 

0 

Total 13.501! (13.141) 18.941 10.470 96,240 2,009,516 1,533 3,671 6.857 15,033 17,666 18,445 

1988 Law ~ Und~:r 10 3.066 (18.193) 3 13 13,470 (9.491) 35,116 169.060 S' 

10 IS 1.331 74 IS 19 7,5611 1.021 13,969 182.763 0' IS :!0 1.351! 51 157 157 7,236 2,608 10,850 198,750 

20 . .30 2,41!0 6011 1,4112 2.418 13.112 8,563 16,474 433,676 9 

30 . so 3,070 1,800 1.793 4,539 13,687 11,597 15.363 623,679 0 so - 100 1,644 7,421 615 1.637 4,144 5,916 4,293 300,065 so 

100 . 200 446 8.142 Ill 391 6 10 2,569 623 98.409 s 

200 & Over 137 11,041 33 124 160 2,096 161 121,302 t:Xl 

Total 13.531 10.943 4.210 9 .298 59.988 24.879 96.850 2. 127.702 ~ 0 

........ 

0 

VI 
0 

Table 4. 1A ALL RETURNS (continued) 10\ 

'""' 3 other TOlil Amount ot Total <11 

IRA's Adjustments No. of Amount of Ell cess No. of Value of (II 

AG I No. of No. ot Non- Standard No. of Itemized Ellemp- Ellemp- , 

Oass• Returns Amount Returns Amount Deduction ltemius Deductions lions tions 

!000) (211) (29) (30) (31) 3 3R 39 4() 41 z 

c: 

19113 Law 5 

(II 

Under 10 608 1.021 1,226 2,SS6 2,464 S,434 34.S93 143,914 32.10S 2.542 7 ,968 60.620 60,620 

10 IS 977 1,996 1.213 1,082 3 ,194 S.814 13,907 173.276 10,931 2.'177 1 l,2ll 32, 113 32, 113 

IS 20 1,250 2.638 1,242 663 3.679 6,563 10,836 188.899 6 ,965 3,872 12,830 27.992 27,992 

20 . 30 2.892 6 .567 2,402 1,335 8 ,233 16.674 16,466 408.141 7 , 137 9.330 38,021 47.960 47,960 

30 . so 4,960 12.336 2.9SO 2,286 10.60S 211.804 15,3S8 S76.749 3.021 12.338 71 ,075 S0.175 SO.l1S 

so . 100 2,496 6 ,288 1,161 2. 18S 3.364 13.S73 4,293 267.816 318 3 .97S 41,388 14,525 14,525 

100 • 200 361 953 190 991 <662 2.890 623 82.333 33 590 13.224 2,147 2,147 

200 & Over 107 260 44 414 125 917 161 87.722 7 ISS 12.804 560 560 

Total 13,649 32,060 10.427 11 ,512 32,126 80.668 96,239 1,928.8SO 60,516 35,778 208,521 236,092 236.092 

1988 Law 

Under 10 339 496 9S6 1,185 1.252 1,682 35,116 167,538 33,379 98,483 1.788 12,914 56.279 70,576 

10 IS S02 914 1,117 648 I,SS6 1,562 13,969 181.395 ll,594 38,765 2.376 16.018 29,100 46,038 

IS 20 614 1, 138 1,210 S78 1,741 1,716 10.850 197.236 8, 143 28.197 2,707 17.706 25,992 41.859 

20 . 30 1,437 2.769 2,402 l.33S 3.61S 4,104 16,474 429,954 9 ,378 34.644 7,096 50.746 45.953 74.304 

30 so I,K47 2.43S 2,9SO 2.286 4,431 4,721 IS,363 619,479 5,047 20,133 10,317 88.521 48,440 78,557 

so . 100 3KO 434 1,161 2.1115 1,442 2.619 4,293 297,682 630 2,578 3.663 46.839 13,746 22,282 

100 200 44 62 190 991 222 1,053 623 97,416 46 192 sn 13,614 1,941 3,148 

200 & Over 10 16 44 414 51 430 161 120.890 10 43 lSI 12.090 496 80S 

Tout I 5,173 11 .265 10,029 9 ,621 14,308 17 ,886 96.850 2.111 ,590 68,226 223.036 28,675 258.443 221 ,948 337.569 

- .. .. .. .. 

-.. • - .. • .. .. .. .. - .. .. -
.. • .. .. . • • • • .. .. • • .. .. • • .. • 

Table 4. 1A ALL RETURNS (continued) 

Taxable Income Alternative Mini- Earned Income Net Income 

Tll.llable Income Less ZBA Tilt Before Credits Credits mum Tax ~AMT) Credit (EtC) Tax Liability 

AGI No. ot No. of No. of No. Of No. Of No of No.Oi' 

aass• Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount lleturrts Amount 

(000) -- _(42)_ (43) (44) (4$) (~ (47) (48~ l-49) (SO} !Sl! <S2} lS3} (S-4) (SS) 

(Num ot Returns in 000. Amounts in S millions) 

1983 Law ~ 0" 

c: 

Under 10 29.$36 112.771 19.421 S3, 156 19,403 6 ,70$ 1.192 234 14 2.S3 6.2011 1,770 22.428 4.972 ;-

10 - IS 13,6SO 131,241 13.387 94,647 13,397 13,SI4 1.894 S81 7 38 0 0 13,232 12,990 - IS - 20 10.789 148,3S9 10,716 117.710 10,716 18,237 1,992 690 4 23 0 0 10 • .534 17,607 o· 

20 - 30 16,420 322 • .522 16,373 272.667 16.371 734 4,213 1.311 18 69 0 0 16,26.5 4.5,S42 ::;, 

Ul 

30 - so 1.5 .339 4.5.5 ,734 1.5,328 40.5,938 1.5,328 80,1104 .5 .272 1.850 77 293 0 0 1.5,300 79.307 :r so 100 4,280 212,122 4,278 198,047 4,277 .51.674 1,941 1,341 108 749 0 0 4,27ll .51 ,149 0 100 . 200 620 67,088 620 6.5,064 620 23,26j 390 848 .51 710 0 0 622 23.1.57 3 200 &. Over 160 74 • .522 160 74,001 160 34,360 123 91S 20 1,2.51 0 0 161 34.674 -=r 

Total 90.794 1..524 .360 80.291 1.281.230 80.273 27.5.293 17,017 7.829 299 3.386 6,207 1.771 82.822 269.398 ~ 

1988 Law ~ 

~ Under 10 111 .89S .56,737 18,907 9,206 969 118 30 228 6,603 3.838 24,196 .5.4112 :::a 10 IS 12,873 83.S74 12,883 12.6S2 1,707 377 2 3 3.7811 1,080 13,621 11,200 ~ IS - 20 10.738 109.883 10.738 16,698 1.7S1 386 s 8 274 8 10,694 16,312 0' 20 - 30 16.394 270,637 16,394 43,794 3..596 741 9 18 0 0 16,381 43,067 

30 - so 1.5 .3..53 432.420 1S,3.53 77.692 4.311 966 30 .57 0 0 1S.3.53 76,778 3 

so . 100 4.287 226.162 4,287 .51.4.5.5 1,710 S46 .57 99 0 0 4.288 .51.001 0 100 - 200 622 80,S38 622 22,323 371 336 43 123 0 0 623 22,107 CD 200 & Over 161 1011,0.52 161 30,421 121 314 18 208 0 0 161 30.312 -

CD 

Total 79.322 1.368.003 79,34S 264,242 14,.53.5 3.78.5 19.5 74S 10,665 4,926 85,318 256.2.58 ~ 

~ 

· • AGI as defined under 1983 law. 

~ 

1-0 

-....1 
Table 4.18 JOINT RETURNS: Gross Income, Adjustments, Deductions, -

0 

00 Exemptions, Taxable Income and Taxes Under 1983 and 1988 Law 

(1983 Level and Distribution of Income) .... 

3 

~ 

en Business Income Capital Gains Wages & Salaries Interest Dividends in AGI or Loss ::0 

Number in AGI Pensions in AGI Number Number Number Number Number Numbei AGI of of of of of z of of Returns Amount c Relurns Amount Returns Amount Returns Amount ::::s 6) Fl ~8l <9! (10) (II) (12) (13) ::::s 

en 1 000, Amounts in millions) 

1983 Law 

Uncler 10 6,676 4.669 36,10.5 3,246 7.460 389 1,279 1,.556 (1,202) 670 3 .378 1.211 .5,063 10 - IS S.312 4 . 134 49,6.51 2.796 11.582 512 837 889 3.276 531 907 1.176 7,274 1S 20 .5.497 4 .769 81.391 2.823 8.318 433 914 873 3 ,811 470 714 832 6,079 20 - 30 11 , 191 10.4.53 258.636 6,774 14.012 937 1.995 1,640 8.104 1.160 1,381 996 8.204 30 

so - so 13 ,266 12,490 460,143 9,982 26,.523 2.074 S .S10 1.781 13,44S 1.914 3.7S3 1.380 14,897 . 100 3.862 3.499 193, 146 3 ,460 20,881 1,S41 7,441 734 13,616 1.389 S,431 47.5 7.433 100 - 200 S47 4SS 4S,793 .533 7,901 370 S,044 144 5 ,699 3.57 4 ,203 64 1,137 ' 200 & Over 141 119 31 .741 139 6.496 114 6.775 40 8.687 110 15.6S9 IS 548 

Total 46.492 40 . .5811 1. 156.606 29.754 100,174 6 .372 29.796 7,656 .5.5,436 6.601 3S.427 6 .1SO 50.635 

1988 Law 

Unut:r 

10 

10 6,742 4 .691 36.178 3.246 7,460 71.5 1.3115 1,556 (1,202) 631 8.590 1.2S8 .5.388 IS 5 .335 4 .134 49,6.51 2,796 8.582 771! 963 890 3.276 531 2.351 1,199 7,.533 15 10 5,502 4,769 81,391 2,823 8,318 713 1,018 873 3,811 470 2,034 837 6,167 20 30 11.196 10,453 258.636 6,774 14,012 1.764 2.226 1,640 8,104 1,160 4,0.54 1.001 8,327 30 50 13.266 12.490 460.143 9,982 26.523 3.599 6.030 1.781 13,44.5 1.917 10,076 1.380 14,897 50 100 3,1!62 3.499 193.146 3.460 20.881 1.992 7,7R6 734 13.616 1,390 14.363 475 7,433 100 ~00 547 455 45,793 533 7.901 414 5.122 144 .5 ,699 3.58 10.722 64 1, 137 200 & Over 141 119 31 .741 139 6.496 113 6 .798 40 8.687 110 39.085 1.5 541! 

Total 46.590 40.611 1. 156.679 29.754 100. 174 10.099 31.330 7.658 S5,436 6.568 91.274 6.130 Sl.430 

• ~ • - .. • - • - .. • • - - .. - • - -
• • .. .. • • • • - .. • - • - • -

Table 4. 18 JOINT RETURNS: Continued 

NetRentS,ROylilties. SOCilll security Employee 

Partnership, etc.. BenefitS Other Total Business Two-Earner 

and Farm Income in AGI Gross Income Gross Income Movi ~ Ellpense Ex.~r Deduction 

AGI No. Of No. ot No. Of No. Of No. iT No. · No. 01 

Oass• Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount 

!000) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) 

(Number Of Returns tn 000, AmountS tn S mtUtOns) 

1983 Law 

Undcr 10 1,7:!1 (21.921) 977 (11,386) 6,673 21,776 71 106 247 764 679 241 

10 15 847 (769) 753 409 5 ,3 12 70 , 167 157 2..57 307 846 1,195 645 

15 20 876 (474) 1,367 627 5 ,497 101 ,380 . 113 189 534 1,222 1,754 1,248 

20 • 30 1.930 (871) 3.745 3.263 11.191 294.721 2S4 S06 1.247 2,58.5 5 ,116 4,827 

30 · .50 2.591 (904) .5.566 5.0.50 13,266 528.415 281 968 1,898 3 .816 7 ,063 8.727 

.50 . 100 1.446 2.89.5 1.608 2 ,.522 3.862 2..53 ,364 112 .584 696 1,822 1,704 2,485 

100 . 200 399 4 .128 224 934 .547 74.838 27 220 91 476 129 217 

200 &. Over 120 S.931 67 864 141 76,700 3 29 18 141 27 .56 

Total 9 .93S (1 1 .986) 14,307 5,282 46,489 1.421.361 1,017 2.8S8 S,038 11,671 17,666 18.445 

1988 Law 

Under 10 1,7211 (1.5.S68) 3 12 4,527 (8,176) 6,739 34.054 

10 IS 849 (2.53) 11 16 3 .710 .528 5,33S 72.632 

IS 20 876 (39) .54 90 4 ,271 917 S,.502 103.617 

20 . 30 1,930 (6) 838 1,327 9 .490 5,490 11 .196 300.840 

30 . .50 2,597 631 1,476 3,891 12.086 10.959 13,266 542.702 

.50 • tOO 1.44S 6 .034 493 1.340 3 ,760 5,566 3,862 268,824 

100 . 200 3911 6,917 88 323 540 2.214 547 8S,.505 

200 &. Over 120 9 .079 26 101 140 1.920 141 104.352 

To tal 9 .943 6 ,79.5 2,989 7 ,100 38,.52..5 19,418 46 . .588 1 ,512..526 

- • 

~ ae. 

~ c;· 

::I 

~ 

:::;'1 

0 

3 

;. 

~ 

~ 

~ 8' 

s 

II) 

~ 

t:XI 

a 

~ 

-0 

\0 

• 
Table 4.18 JOINT RETURNS: Continued 'o 

..... Other TOtal Amount of Tolil IRA ~ Adju~"tmentS No. of Amount of E.~tcess No. of Value of 3 

AGI No. Of No ot' Non- Standard Itemized E.~temp- Ellemp- $l Oa)s• Returns Amount Returns Amount Deduction Deductions tions tions 

1000) :::0 (21!) (29) (30) (31) 37 39 (40) 41 

( 2 

1983 Llw c 

::I 

Under 10 370 69S 600 1,637 1,527 3,442 6,673 18.334 5,799 877 3.588 22,774 22,774 ::I 

10 IS SOl 1,207 S49 602 2.028 3.SS7 S.312 66,610 4,059 1.253 5,242 18.737 18.737 VI 

IS 20 793 1.963 739 361 2,705 4,983 S,497 96,397 3.430 2,067 8,044 19,416 19,416 

20 JO 2.348 5,678 1.659 853 6.991 14,448 11 , 191 280,274 4,89S 6.296 27,279 39,686 39.686 

30 so 4,675 11.873 2,520 1,747 9,936 27,103 13.266 SOI,311 2,584 10.681 61,610 46.842 46.842 

so 100 2.404 6. 138 1,051 1.808 3,183 12.833 3.862 240.S31 291 3.571 37,016 13.803 13.803 

100 !00 349 935 171 825 435 2.65S 547 72,183 29 518 11,529 2,017 2.017 

200 & Over 102 253 39 325 117 802 141 7S,897 6 135 10.8S2 522 522 

T1llal 11 .541 !K.742 7.330 11 ,159 26.923 69.R24 46.4811 1.351.537 21.092 25.400 165.160 163,798 163.79R 

1988 Llw 

Under 10 196 319 417 691 S99 1,012 6.739 33,133 S.940 25,510 802 6.679 20.325 32,935 

10 IS 294 574 476 300 724 874 S,33S 11.859 4,272 18,434 1.063 8,040 16,561 26,862 

15 20 435 877 707 276 1.093 1,153 5.502 102.609 3,873 16.340 1,629 11,852 18.027 29,240 

20 30 1.2117 2.532 1,659 852 2.754 3,384 11 ,196 297,762 6,230 25,990 4,966 37,760 38.239 62.091 

.30 so 1.783 2.342 2,520 1.747 3,948 4,089 13,266 539.061 4,314 18.082 8,952 77,621 4S,386 73.617 

50 100 370 417 1,051 1,808 1,324 2.226 3.R62 266.813 558 2,384 3.304 42,173 13.137 21,309 

100 200 41 57 171 825 201 882 547 84,677 39 172 SOB ll.931 1,840 2.985 

200 & Over 9 IS 39 325 46 340 141 104,029 9 -40 132 10.250 468 158 

Tutal 4,415 7,134 7,041 6.826 10.689 13.960 46.588 1,499,942 25,233 106.954 21,357 206.301 154,035 249,797 

• .. • - .. • • • - .. .. .. • • • • • • • 
.. .. .. .. • • • - - .. • .. .. - - - - .. -

Table 4.18 JOINT RETURNS: Continued 

Taxable Income Ahernauve Min•· Earned Income Net Income 

Taxable lnc:ome Less ZBA Tu Before Credits Credits mum Tax ~AMn Credit (EIO Tax Liabilitv 

AGI No. of No. ot No. of No. ot No. ot' No. ot' No. of 

Oass• Returns Amount Returns Amount Retums Amount Returns Amount Returns Amount Returns Amount Returns Amount 

(000) (42) (43) (44) (45) (-46} !4!} ~~ (49) ~0) ~51) (52) (53~ (54) (55) 

(Number of Returns in, Amounts in S m= onsl ~ 1983 Law ac 

Under 10 4.980 18,437 2,773 4,856 2,774 561 258 42 10 215 2,824 797 4,596 (53) ;-

10 15 5,201 43,141 4,981 25,754 4,985 3,316 814 2111 s 26 0 0 4,863 3,136 -.... 15 20 5,465 69,115 5,394 50,610 5,394 7,083 1,272 458 3 15 0 0 5,237 6,671 0 

20 30 11 ,162 213,471 11,126 175,560 11,124 27,86.5 3,330 1,112 13 48 0 0 11.022 26.849 = VI 

30 . so 13 ,253 393,042 13,242 348,001 13,242 67,269 4,774 1,706 46 218 0 0 13.215 65.836 ::;" so . 100 3,852 189,873 3,850 176,779 3,850 45,216 1,778 1,203 90 631 0 0 3,851 44,705 0 

tOO - 200 545 58,734 S45 56,882 545 20,142 354 778 38 507 0 0 546 19,900 3 

200 & Over 140 64.662 140 64,186 140 29.698 110 844 16 1,044 0 0 141 29,933 5-

Total 44,598 1.050.475 42.050 902.627 42.054 201.152 12,690 6 ,361 223 2.705 2,824 797 43,472 196,978 ~ 

Under 10 1,742 7,137 1,743 

1988 Law ~ 1.463 189 10 22 138 3,145 1,822 4,597 (228) " 10 15 4,554 20.429 4,558 3.149 708 96 1 2 2,113 583 5,167 2,473 ~ 

15 20 5,414 45,463 5,414 6,868 1.102 230 4 s 175 s 5.384 6,638 0' 20 . 30 11,137 172. 150 11,137 26,055 2,844 608 8 17 0 0 11 ,126 2S,462 

30 - so 13,259 369,872 13,259 64, 132 3.903 904 19 49 0 0 13,2S9 63.273 3 

so . 100 3,858 201,094 3,858 44,902 1,559 .S1 47 83 0 0 3,8.58 44,498 0 100 • 200 546 69.651 546 19.263 336 310 36 lOS 0 0 547 19,053 I» 

200 &.Over 141 93,072 141 26,219 108 268 1.5 165 0 0 141 26,113 s 

Total 40,651 978,869 40.656 192.0.50 10.750 2,908 151 564 5.433 2,410 44,079 187 ,281 IX' 

~ ~ 

* AGI as defined under 1983 law. 1.... -

.... 
Table 4.2A ALL ITEMIZER RETURNS: Gross Income, Adjustments, Deductions, t-.J 

Exemptions, Taxable Income and Taxes Under 1983 and 1988 Law '- ( 1983 Level and Distribution of Income) 3 

n 

(I> 

Business Income Capitil Gains :;o Wages & Salaries ln1.erest Dividends in AGJ or Loss in AGI Pensions in AGI 

Number Number Number Number Number Number Number z 

AGI of of of of of of of c 

Returns Returns Amount Returns Returns Amount :::1 

:::1 I) 2 8 (12 13) (I> 

1983 Law 

Under 10 2.542 1.209 12,371 1,820 4,925 53S 1.611 S21 971 400 901 392 1,407 

10 IS 2,977 2.2S.. 28,109 1,746 4.89-4 32.5 722 SJ.4 1.983 289 406 620 4,233 

IS 20 3,872 3.154 54.003 2.36S 6.028 S1S 1.790 671 3.153 465 6SS 619 S.l63 

20 . 30 9,330 8.S06 211,972 6.128 12.844 1.093 3.333 1,38S 6.833 1.079 1,369 811 6.677 

30 . so 12.338 11.S72 426.829 9,48$ 25.981 2,169 6,403 1.682 12.863 2.024 3,696 1.247 12.793 

so . 100 3.97S 3.SS7 196.831 3.543 22.016 1,6S3 9,957 74() 13,887 1.516 6,361 448 6,708 

100 . 200 .590 47S 47 .Sl7 S73 8.904 407 6,420 ISO S.887 392 S.24S 71 1,299 

200 & Over ISS 125 33,679 152 7,479 12.5 8.265 44 9.698 121 17,803 17 618 

Total 3S.771! 30.1181 1.011 .310 25.811 93.072 6 ,883 38.499 S,726 SS.277 6,28S 36.436 4.2~ 38.898 

1988 Law 

Unucr 10 1.781! 970 12,141 1.184 3,739 438 1.016 499 (1.872) 244 2,865 292 1.34S 

10 - IS 2.,376 1,901 24,252 1.341! 3,849 362 S83 4S6 1.644 240 726 461 3.03S 

IS - 20 2.707 2,266 39.116S 1.687 3.691 S23 1,205 S30 2,441 305 1.348 427 3.677 

10 . 30 7,096 6,S20 164. 180 4,737 8.933 1,3S6 2.S60 1.137 S.600 812 3,422 S96 4,820 

30 . so 10.317 9,792 366.079 7,908 19,076 2.960 S,393 1.426 10.897 1,631 6,972 980 10.236 

so - 100 3.663 3,317 18S.410 3,257 18,842 1,930 9 ,298 6S.. 12,840 1,383 14.868 430 6,376 

tOO · :tOO S77 469 47,260 S60 8,437 443 6,272 144 5.456 3S.. 12.9.58 73 1,303 

200 & Over lSI 122 33.188 149 7.307 131 8, 1S1 43 9 . .5.52 118 43.S7S 17 701 

Total 28.67S 25,3S9 872,37S 20,830 73,873 8,142 34,478 4,919 46.SS9 S.ll8 86.733 3,277 31.49S 

• - • .. .. • • • - .. • • • - - • .. • -
.. • .. • • • • • • • • .. • • • • 

Table 4 .2A ALL ITEMIZER RETURNS: Continued 

AGI 

OB~· 

1000) 

UnJct 10 

10 1.5 

I.S :!0 

:!0 30 

30 so 

50 100 

100 . :!00 

~00 & Over 

Total 

Unuc• 10 

10 15 

1.5 :!0 

:!0 . 30 

30 50 

50 100 

tOO · 100 

:!00 & Over 

T\Hal 

NetRents.Royahies. SOCial Security Employee 

Partner)hip, etc.. Benefits Other Total Business Two-Earner 

and F11rm ln<.'Ome in AGI Gross Income Gross Income Moving Expense Expense Deduction 

No. ot No. ot No. ol No. Of No. of No. Of No. of 

Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount 

(14) (IS) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) 

(Number ol Returns in 000. Amounts in S miOions) 

1983 Law 

707 (6,860) S60 334 2.S42 1.5.660 37 36 96 197 100 4S 

621 (740) 999 .51111 2,977 40.194 109 244 309 913 278 137 

69.5 (839) 1.397 1,267 3,872 71,221 97 161 482 1,019 6.51 467 

1.647 (883) 3,91.5 4 ,2113 9.330 246,426 233 610 1,27) 2,376 2,938 2.89S 

2 ,S49 (1 .297) 5.506 4 ,773 12,338 492.039 257 894 1,917 3 .904 .5.780 7,290 

1,514 2 . .557 l.6.5S 2.7.51 3.97.5 261.066 114 .582 727 1,913 1,.591 2.340 

422 4 ,302 239 I.OS7 S90 80.631 23 179 9S .504 123 211 

132 6 ,829 72 910 ISS 8S.278 3 29 18 149 2.5 .53 

lUII7 3 ,069 14.342 1.5,963 35,778 1,292,.51.5 872 2,736 4,917 10,97.5 11.486 13,439 

1988 Law 

637 (10,212) 0 0 1,039 (7.998) 1,788 1,024 

498 (392) 4 I 1.662 416 2,376 34,114 

513 (679) 64 74 2,06.5 708 2.707 .52.25.5 

1.:!7S (18.5) 648 1.116 6,01.5 4 .934 7 .096 194.263 

2.059 (179) 950 2,075 9 ,300 7.037 10.317 425,507 

IJ77 4 ,639 4.56 1.21 I 3,.542 4.838 3,663 2.57,109 

412 7 , 14.5 97 329 .566 2.26.5 .577 91.096 

129 10,077 30 Ill 150 1,952 1.51 114.501 

6 .900 10 ,213 2.:!47 4,918 24,338 14, 1.52 28.675 1,169,868 

• • 

~ a 

c 

;-

-

s· 

= "' 

~ 0 

3 

5-

n 

~ 

~ 

0' 

a 

0 

a 

SID 

tD 

~ 

--

w 

• 
Table 4.2A ALL ITEMIZER RETURNS: Continued 1-

~ 

Other Total Adjusted Gross Itemized Deductions -I» 

IRA's Adjustments Adjustments Income !AGI) Medical & Dental S & L Income Taxes Rell Estate Tues 9 

AGI No. of No. ot l"lo. ot No. Of No. ot No. Of No. of ~ 

en Class• Returns Asnoum Returns Amount Amount Returns Returns :;11:1 (000) (28) (29) (30) (31) (37) (38) 4() 

2 

1983 Law c 

Under 10 133 184 261 S21 438 983 2,S42 14.676 1.473 4,868 1,555 4S3 1,404 1,137 = = en 10 - IS 271 S41 S49 673 1.014 2.Sl4 2,97? 37.680 1,701 4,243 2.487 1.310 2.088 1,734 

IS 20 S23 l.ISI 630 377 1,497 3,174 3,872 68.046 1.901 2,8S6 3.36S 2.S96 2,889 2,196 

20 30 1.834 4,223 1,657 941 4.959 11.046 9.330 23S.381 3,276 S.26S 7,917 10,088 7,042 S.98S 

30 - 50 4.106 10,241 2.S411 1.940 8.716 24,249 12.338 467,790 2,691 4.38S 10.243 20.892 10,493 10.918 

so 100 2.32S S,864 I ,IIS 2.082 3.1S1 12,782 3.97S 248,284 S68 1.374 3.130 11.688 3.603 S.678 

100 200 34S 908 183 967 44() 2.760 S90 77,871 36 328 441 3.70S S33 1,433 

200 & Over 102 249 43 407 120 886 ISS 84.392 4 132 98 2,849 142 621 

T1'1al 9.6311 23.367 ti.9R6 7.9011 20.33ti SR.394 35 .7711 1.234,121 11.649 23,4S2 29.237 S3.S81 28.19S 29.702 

1988 Llw 

Under 10 70 82 267 382 314 46S 1.788 677 1,147 4,1Sl 1,189 380 07~ 907 

10 IS 114 196 S34 3SS 62S SSI 2,376 33,726 1,064 3,347 2,013 1,090 1,769 1,476 

15 20 180 3S8 S86 361 720 719 2.707 S1.694 1,076 1,716 2,330 1,932 2,269 1.78S 

20 - 30 719 1.376 1.468 887 2.036 2,262 7,096 192,338 l ,S76 3.208 6.022 8.037 S.791 S,286 

JO - .so 1.2S4 1.617 2.302 1.6S3 3,273 3.270 10.317 422,723 l ,OS2 2,421 8,6S6 18.60S 9,201 10,050 

so . 100 313 357 \ ,049 l.93S I .274 2.292 3.663 255,048 171 764 2,924 11,332 3,376 5.463 

100 • :!.00 39 .S3 180 944 208 997 S71 90.lS8 18 229 437 3.694 524 1,420 

200 & Over 9 14 42 403 48 416 lSI 114.103 2 96 97 2,848 139 617 

Total 2.697 4 ,054 6.428 6.920 8,497 10.974 28.67S 1, 160,467 6,107 IS.931 23,668 47,916 24,142 27,002 

• - • .. - • • • • • - • .. - • • • • -
• • - .. • - - • - • - • - .. - • - - • 

Table 4 .2A ALL ITEMIZER RETURNS: Continued 

bem Wed 15iiauctlons - eoiidniied Amount 01' 1'0iil 

!aleSTu Odler Tues liiterest ~tr1butlons Q•scd'aneous Exceu No. ol Value ol 

AGI No. 01' No. Of No. Of NO. 01' No. 01' Total ZBA Itemized Exemp- ExempO•ss• Returns Amount ~ums Amount Returns Amount Returns Amount Returns Amount Amount Amount Deductions tions tions 

(000) (42) (43) (<44) (45) (46} (4~ (41) ~) (50) ~ (52) (Sl) (S4) (55) (S6) 

(j 

~ (Num Of &un~s in , Amounts In S m~ s) c 

1983 Law ;-

.... Under 10 2 ,092 432 746 90 1,661 4,930 U81 962 1,461 706 13.578 5 ,607 7 ,961 5.192 5,192 s· 

10 . IS 2,70j 709 1,207 130 2.S82 7,894 2,323 1,936 2,329 1,357 19.313 8 ,098 11 ,211 7,321 7 ,328 = Cit 

IS • 20 3 ,711 1.095 1,806 214 3,526 10,610 3,116 2,785 3 , 106 I ,.50S 23 ,927 11 ,092 12,8.30 10.662 10.662 

20 

30

. 

- 30 so 12

8.11011 

.006 5

3 ,

,700 

280 036 

5,975 991 

519 

11

8,

,

690 

633 50

30,236 

.271 11

7,

.

195 

260 10

6 ,

,

:!17 

974 10.162 

8.010 

7,179 

4,703 

111

66,353 

,310 

28,254 

40.083 

38

71,075 

.021 21.m 

41 ,166 

27

41,166 

,878 ~ 3 so . 100 3 ,111W 2,533 1,863 467 3,592 22.316 3.777 1,095 3.394 3.372 54,593 13.067 41,318 13.513 13,513 

100 . 200 5711 553 266 110 S07 5 .212 560 2,762 483 1,074 15,177 1,926 13,224 2,()45 2,045 -::r 

200 & Over 148 208 72 88 133 3,248 149 5,219 129 936 13,361 SOl 12,1104 537 S37 " 

Tut11l 33,933 14.511 16,271 2,668 32,322 134,856 30.730 38,010 29,772 20.834 317,614 108,630 208.521 108,320 108,320 ~ 1988 Law 

Unuer 10 574 fn 1,357 3.534 1,073 733 738 3.140 12,914 3.639 5,530 ~ 10 IS 953 101 2,069 5,934 1.767 1.544 931 2.526 16,018 5.526 8,144 0' 

" 20 1,291 143 2,471 7,169 2.211 2.204 969 2.0S7 17,706 7 ,315 11,716 3 20 • 30 3,355 4S1 6 ,653 23,393 6,252 S.204 2,460 5,167 S0,746 21.113 34,237 i 30 · so 5,031 814 9 ,817 39,937 9,745 9 ,961 2,938 6.733 88,521 33,764 S4,7S3 

so . 100 1,762 440 3.367 18,477 3.533 6 ,891 910 3.472 46,839 11,970 19,401 s 100 • 200 264 109 500 4.306 548 2,746 149 l.llO 13,614 1,823 2.956 

200 & Over 71 18 130 2,615 146 5,216 25 sso 12,090 470 762 = 

Total 13,315 2,215 26,370 106,065 25,343 34.SS9 9 ,189 24,755 258,4"3 85,690 131,269 I 

--t.A 
Table 4.2A ALL ITEMlZER RETURNS: Continued '0\ 

Taxable Income AJternalive '- Earned lnc.:ome Net Income 

Tuable Income Less ZBA Tax Bett>re CrediiS CrediiS Minimum Tp !AMTx:;redil !EIC) Tu Liabilit~ 3 

AGI No. ot No. of No. ot No. of No. ot No. of No. Of' ~ 

VI a ass• Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount , (000) (57) (58) (59) (6C) t6~ ~ ~} (64} (6.5! (66! !67} (68) (69) !70! 

(Num-r ot ~ur s in , AmouniS in S millions) :z 

1983 1...8w c 

~ 

~ 

I 

VI 

Under 10 1.900 7 .187 1.297 4 ,:!08 1.271 391 lOS 23 4 64 346 84 1,500 361 

10 IS 2 ,719 20.429 2.476 13.369 2,486 1.884 676 177 2 8 0 0 2,418 1.729 

IS 20 3 .!f24 44,836 3.752 33,966 3.752 5.078 1.046 331 I 13 0 0 3.610 4,787 

20 . 30 9 ,2113 169.842 9.236 141 ,770 9,235 23.862 3.091 897 Ill 640 0 0 9,153 23,059 

30 . 50 12,319 355,7114 12.3011 315.776 1:!.308 62.091 4 .611 1,4611 58 21 0 0 12,289 60.8115 

50 . 100 3 .962 193.602 3,960 180.578 3.959 46.830 I .827 1.156 102 7010 0 0 3.961 46,«0 

100 . 200 587 62,728 587 60.812 587 21.699 36ll 738 49 67 0 0 589 21.667 

200 & Over 153 71.215 153 70.716 153 32.1150 119 9 111 19 1.2300 0 0 IS4 33.201 

Total 34.748 925,623 33.769 821 .195 33,750 194.6116 11.843 S.709 2S4 2.974 346 85 33.673 192.1211 

1988 Law 

Under 10 730 5 . 180 730 1.129 54 8 IS 129 3611 183 1.045 1,067 

10 IS 1.826 10.952 1,8.35 1.706 369 73 I 2 524 142 2.061 1,493 

IS 20 2.614 22.574 2.614 3 ,472 621 117 s 8 60 2 2.596 3.362 

:!0 30 7 ,020 107,722 7,020 17.402 2,044 429 9 17 0 0 7.008 16,988 

30 so 10,307 279,600 10.307 49,5112 3,178 657 30 ss 0 0 10,307 48,976 

so 100 3.657 188.9116 3,657 42.697 1.4119 396 51 92 0 0 3.658 42,3811 

100 200 S76 73.664 . S76 20,399 342 280 41 119 0 0 577 20,233 

200 & Over 151 lOt ,352 1.51 211.536 l iS 281 17 204 0 0 151 28,457 

Tou1l 26,1179 790,030 26.889 164.923 8.212 2.242 169 626 953 326 27.401 162,965 

*AGI as defined under 1983 law. 

• • • .. .. • • • • • • • • • • • - • • 
.. • .. .. • • • • • .. • • .. • • • • • • 

Table 4.28 JOINT ITEMIZER RETURNS: Gross Income, Adjustments, Deductions, 

Exemptions, Taxable Income and Taxes Under 1983 and 1988 Law 

(1983 Level and Distribution of Income) 

Business Income CipitaJ Gains Wages & Salaries Interest Dividends in ACI ()(Loss in ACI Pensions in AGI 

Number Number Number Numbei Number Number Number 

ACI of of of of of of of 

I~ Oas,• Return) Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount 

(000) (I) !2) (3) (4) (S) (6) (7) 181 19l IIOl 1111 1121 113) 

E.. 

I» 19113 Law ::::. 

0 Under 10 877 .527 6.117 678 1,.59.5 119 .576 333 724 203 611 240 978 ::;, 10 IS 1.2.53 973 10.893 873 2.479 191 3.53 405 t .SS2 203 332 322 2.2!2 "' 

lO 

IS 

· 30 

20 

6

2.067 

.296 5

1

.

.7

117.5 

1.5 

149.713 

29.927 

4

1,28.5 

.135 6

3

.

.

864 

152 

S37 

2S6 

1.227 

S92 

1.

519 

18.5 S

2.328 

,876 743 

287 

1,042 

sos 

SOl 

356 

3

2.842 

,928 ~ 30 3 . so 10,682 10.164 380.606 8,144 18,S8S 1,630 3 ,978 1,533 11.4S3 1,602 2.638 1,022 10,824 so . 100 3 • .571 3.278 182.546 3.196 17,791 1.410 6,769 686 12,468 1.295 4,987 407 6,281 So 100 . 200 SIK 43.5 43.962 sos 7 ,335 3S2 4.8.56 137 5.414 340 3.955 60 1,076 ~ 200 & Over 135 114 30.710 133 6, 161 110 6.622 39 8.478 lOS 14,902 IS S34 ~ 

Total 2.5.400 23,081 8.34,474 18.948 63.963 4,604 24.973 4.838 48,292 4.779 28,972 2,922 28,74S 

1988 Law ~ = 

Undt:r 10 802 Sill 6.799 .562 1.478 1S7 440 322 (1.360) 124 2.273 151 678 0' 

I

10 

S 20 

IS 

1

1.063 

.629 1,390 

861 

24,925 

10.:!.31 68.5 1,946 22.5 363 3S2 1.286 114 567 2J.S 1,613 3 1.000 2.08S 277 S54 419 1.908 214 1,119 233 2, 113 

0 20 • 30 4 .966 4,70S 120,587 3.281 4,447 8.59 889 98.5 4,951 563 2 • .583 3SO 2,64.S 30 so 8 .952 11,.598 326,1.53 6.7113 13.446 2,430 3,398 1.302 9 ,145 1.300 S,405 770 8.238 I» 

so . 100 3 .304 3,066 172.508 2.953 15.261 1.698 6.385 637 11.599 1.188 11 .8.56 348 .5 • .517 £0 

100 200 SOB 430 43.754 49.5 6 .970 387 4,763 1:\1 4.965 334 9.818 59 1,0.58 "' 200 & Over 132 112 30.341 130 6.055 liS 6.5.51 38 8,357 103 36,402 IS 539 f: 

~ 

Total 21.357 19,680 735.299 15.890 .51 .690 6 .1411 23.344 4. 186 41,453 3.999 70,021 2.160 22,400 

I= 

-...1 
Table 4.28 JOINT ITEMIZER RETURNS: Continued 

NetRents,ROyahies. SOCial security 

Partnership. etc . • Benefits Other Total 

and Farm Income In AGI Gross Income Gross Income 

No ot No. Of No. Of No. Of 

Returns Amount Returns Amount Returns Amount Returns Amount 

141 051 (1 6) (17) (I~ , ~9) J&fl (21) I 

urn r ot 

19113 Law 

UnJer 10 3112 (3.916) 286 7 877 6.691 

10 15 349 (715) 472 153 1.253 17,329 

IS 20 475 (740) 80.5 246 2,067 38,851 

20 . 30 1,248 (984) 2.868 2,396 6,296 110.062 

30 . 50 2.153 (1.934) .5.012 4 ,220 10.682 430,.369 so . 100 1.327 1,716 1,.552 2.302 3,.571 234,359 

100 200 377 3 . .523 21.5 769 .518 70.889 

200 & Over 115 .5,437 64 808 13.5 73,651 

Total 6.427 2,388 11,273 10.900 25.400 1.042.700 

19811 Law 

UnJcr 10 413 (11 .346) 0 0 625 (6.774) 802 (4,809) 

10 IS 316 (307) 2 0 887 242 1,063 15.940 

IS 20 362 (614) 34 60 1.360 298 1,629 32.389 

20 30 9211 (421) 343 .581 4,393 2,976 4,966 l38,6S7 

30 so 1,730 (759) 773 1,730 8 ,224 6,588 8.952 372,212 

so 100 1,219 3,485 359 97.5 3,219 4 ,492 3.304 231 ,102 

100 :!00 369 6,015 76 268 .SOl 1,945 508 79,348 

200 & Over 113 11,327 24 90 131 1,11011 132 98.378 

Total 5.«9 7,440 1.611 3,704 19.341 11,574 21.357 963,215 

- .. • .. .. • - - - -

EmPlOyee 

Business 

Movln& Ex!!!!!se 

No Of ~7 Returns Amount Returns Amount 

(22) (23) (24) (25) 

14 25 66 124 

64 138 127 404 

40 88 317 746 

164 423 ~ 1.895 

231 839 1,673 3.361 

104 549 677 1,761 

22 179 89 455 

3 27 17 132 

643 2.269 3.871 8.879 

• - • • 

Two-Earner 

Deduction 

No:Oi' 

Returns 

126 

100 

278 

651 

2,938 

5,780 

1,591 

123 

2S 

11,486 

• 

45 

L37 

467 

2.895 

7,290 

2.340 

211 

.53 

13,439 

• • 

00 

-

3 

~ 

, 

z 

c 

5 

en 

• • 
• • .. .. • • • • • .. • . .. • • • • • • 

Table 4 .28 JOINT ITEMIZER RETURNS: Continued 

Other Total Adjusted Gross Itemized Deductions 

IRA's AdjustmentS AdjustmentS Income !AGI) MediCiJ !' Deniil S & L Income Tllltes Real Estate Taxes 

AGI No. ot No. Of No. of No. Oi No. ot No. ot No. of 

Oass• Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Re.turns Amoum Returns Amount ~ (000) (211) (29) (30) (31) (32) (33) (34) (3$) b36) (37) (38) (39) (40) (41) S» 

0" (Number ol Returns in 000, Amounts in S mi ions) c 

1983 Law ii) 

Unuer 10 93 134 1$9 404 289 732 877 S,9.58 7411 1,671 .540 180 7.57 770 -

0 

10 1.5 164 366 259 377 634 1,421 1.253 1$,908 899 1,882 1.037 .593 1,08.5 1,021 ::s 

IS - 20 340 880 394 167 1,04.5 2.348 2,067 36 . .503 1,27.5 2, 167 1.761 1,27.5 1.776 1,377 Ill 

20 30 1.477 3.656 1,160 611 4,140 9,481 6.296 160,581 2,.5$.5 3.606 .5 ,367 6,666 .5 ,371 4.611 =i' 

0 30 - so 3.1168 9,8.5.5 2,172 1,479 8,1.56 22,80.5 10,682 407,.564 2,463 3,81 1 8.77$ 17 . .507 9,437 9.812 3 so 100 2.238 .5 ,725 1,012 1,731 2,981 12,107 ) ,.571 222,7.52 .528 990 2.813 10,4.51 3.298 .5.234 

100 200 334 890 16.5 803 41$ 2,$29 $18 68,360 ) I 202 387 3.229 480 1,309 -::r 

200 & Over 98 242 )8 320 112 773 13.5 72,878 2 S6 86 2,40.5 127 .553 ~ 

Total 8.613 21.747 .5,3.56 .5,892 17,773 .52.19.5 25,400 990,.50.5 8,.501 14,38$ 20,777 42,306 22.330 24,698 

.., 

~ 1988 Law , 

Unller 10 41 .52 137 145 169 198 802 (4.943) 603 1,262 486 1.53 611 620 ~ 

10 1.5 8.5 ISO 226 147 29.5 297 1,063 1.5.723 618 1,368 899 .534 927 881 0' 

1.5 20 148 310 384 183 490 492 1.629 32,013 798 1,387 1,374 1,0.53 1,4.50 1,147 3 :!0 . 30 634 1,249 1,047 601 1.5.53 1,8.50 4,966 137,076 1,192 1,952 4,228 .5,413 4,408 4,0.56 

30 - so 1,214 1,.5.5.5 1,959 1,247 2,898 2.802 8,952 369.826 95.5 2,006 7,4.56 1.5,.579 8,231 8,981 0 

I» so - 100 30.5 343 951 1,607 1,169 1 ,9.51 3,304 229,362 147 434 2,647 10,123 3 ,102 $,043 ... 100 - 200 36 49 163 781 188 830 .508 78,573 1$ 121 384 3.221 472 1,297 I» 

200 & Over 8 13 37 31$ 4) 32.11 132 98,066 I 35 86 2.404 124 549 o:l 

Total 2.470 3.721 4,903 .5,026 6,804 8,747 3.57 9.5.5,696 4,329 8,.56.5 17,5$9 38,478 19.326 22 • .57.5 ~ 

-

-\0 
Table 4.28 JOINT ITEMIZER RETURNS: Continued lt-.> 0 

Sales 

hemiz

Ta• 

ied DediK.,ions 

OOer 

- Continued 

Taxes Interest C:ontr ibU uons Miscelhtneous 

Amount 

E•c::ess 

Of TOtal 

No. of Value of -

3 

AGI No. ot No. ot No. 01 No. of No. ot TOtal ZBA hemized Ellemp- Exemp- ~ 

en a ass• Rewrns Arnount Returns Amount Returns Deductions tions tions iiO (000) (42) (43) (44) (45) ·--~ S4 (55) (56) 

1983 Law 

z 

c 

:::) 

Under 10 803 199 371 48 809 3.024 736 471 SS3 209 6.572 2.981 3,432 2,807 2.807 :::) 

10 IS 1,191 307 614 74 1.113 4,151 l.ISS 1,039 985 437 9,504 4.261 4.346 4.296 4.296 en 

IS 20 1.962 S82 1,076 140 1.926 6 ,962 1.789 1,776 1.658 796 IS.07S 7.029 6.324 7 ,495 7,495 

20 . 30 5.991 2.303 2.980 424 6 .013 23.475 5 .647 4,655 S.3S3 2,974 48.726 21,407 26.031 22.937 22.937 

30 - so 10.387 5 .018 5.253 882 10.248 45,393 9.896 9,713 9 ,453 5.934 98.070 36.319 50,043 38.478 38.478 

so . 100 3 .493 2.307 1,676 415 3,297 20,697 3 .426 6.357 3.053 2,839 49,290 12.143 35.934 12,828 12.823 

100 . :!00 S09 502 237 94 455 4,73S 498 2,400 424 845 13.316 1.762 16.020 1,922 1.922 

200 & Over 130 186 64 72 119 2.877 131 4,450 113 763 11.362 4S8 17 .4S9 500 soo 

T~>tal 24.466 11 .406 12.271 2,1411 23.980 111 .314 23.277 30,861 21 ,592 14.797 2S1 .91S 116.360 159.589 91 .264 91.264 

1988 law 

Under 10 311 40 707 2,262 S66 384 298 1,958 6,679 2,S08 4,064 

10 - IS 514 58 961 3.323 923 837 46.5 1.034 8,040 3,435 s.m 

IS 20 853 100 l.S44 S,318 1,387 1,441 632 1,406 11,852 S,690 9 ,229 

20 - 30 2.393 336 4 ,807 18,453 4 ,499 3,873 1,646 3.677 37,760 17,970 29.134 

30 so 4,447 732 8.669 35.990 8.5SO 8,771 2 ,491 S,.562 77.621 31,793 SI ,S68 

so - 100 1.587 399 3.096 16,981 3.214 6,161 8.56 3.032 42.173 11.444 18,.562 

100 - 200 236 94 4SO 3.887 487 2,385 131 926 11 ,931 1,730 2.806 

200 & Over 64 71 117 2.294 128 4,446 21 451 10,2SO 442 718 

Total 10,404 1.829 20,350 88.51 1 19,758 28,297 6.540 18,046 206,301 75.013 t:!1 .6S3 

- .. • ~ ~ 

- • • - .. .. .. .. • .. • • • .. 
• - .. .. • • • • • .. • • .. .. • .. • - -

Table 4.28 JOINT ITEMIZER RETURNS: Continued 

Tauble Income Alternauve Earned Income Net Income 

Tuable Income LessZBA Tu Betore CreditS CreditS Minimum Tax (AM"O:redit (EI9 Tax Liability 

No. ot No. ot No. ol No. ol No. of No. ot No:Oi' 

Class• Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount Returns Amount 

!000) (57) (58) (59) (60) !61) ~62) (63) !64) ffiSl !66) (67) (68) !69) (70) 

(Number ot Returns in 000. AmountS in S mi'ons) 

1983 Law 1-i S» 

0" 

c: 

Undet 10 513 1.463 178 256 178 30 24 8 2 43 211 so 364 21 ;-

10 15 1, 143 6.1!1!1 942 3 ,283 946 431 230 52 0 s 0 0 893 392 -

o· 15 20 . 2,035 21,141 1.964 14,298 1.964 1,920 676 243 I 9 0 0 1.840 1.709 :3 :!0 30 6.267 110.527 6.231 89.259 6,230 13.1136 2.386 738 13 43 0 0 6,1SO 13.169 ..,. 

30 - 50 10.669 307 .661 10.658 211 . .as 10,659 51.854 4. 176 1,369 34 152 0 0 10.640 50.683 :::j> 

50 100 3.561 173.069 3.560 160.962 3,.560 40,917 1.675 1.059 85 S81 0 0 3.561 40,503 0 

100 . 200 516 55,007 516 53,252 516 18.823 334 674 37 481 0 0 518 18.656 3 

100 & Over 134 61.665 133 61,210 133 28,335 106 789 16 1,026 0 0 135 28.606 ;. 

~ 

Total 24,831! 737.413 24.182 653.925 24.186 156.145 9.607 4.933 187 2.345 211 so 24,100 153,739 -i 

1988 Law S» 

>< 

Under 10 161 1.456 161 320 14 2 8 so 324 ISS 451 213 "' 10 15 716 3.311 719 541 ISO 16 I 2 326 83 920 444 ~ 

IS 20 1,.560 11 , 185 1..560 1,710 459 96 4 s 48 1 1,537 1,617 0' 

20 . 30 4,911 70,410 4,9 11 10,718 1,620 338 8 16 0 0 4,899 10,397 

30 . 3 so 8 ,945 240,769 8.946 41,255 2,878 627 19 47 0 0 8 ,945 40,671 

so . 100 3,300 168,774 3.300 37,458 1.364 370 43 78 0 0 3,.301 37,162 0 

100 . 100 507 63.897 S07 17,654 310 259 34 100 0 0 S08 17,492 a 

200 & Over 132 87. 190 132 24.562 102 238 14 162 0 0 132 24,48S S» 

To tal 20.232 646,994 20.236 134,218 6.899 1.947 130 460 698 240 20,693 132.481 

t» 

a 

~ 

I_ 

It-,) 

*AGI as defined under 1983 law. 
122 James R. N unns 

although the tabulations assume static behavior. the revenue estimates made by 

the Treasury and the JCT do assume behavioral changes. 3 Thus, for example, 

in making revenue estimates the level of capital gains realizations in 1988 is 

assumed to be substantially lower than it would have been under pre-TRA law, 

but the tabulations show capital gains at their (static) pre-TRA level. 

Note that the total number of filers changes between 1983 law and 1988 law. 

The difference represents the number of taxpayers who are taxable or eligible 

for an earned income credit refund under 1988 law who were not taxable (or 

eligible for a refund) under 1983 law. For these tables, all filers under 

1983 law were considered to be filers under 1988 law. The change in the 

number of filers affects the values of all variables, even those unaffected by 

the TRA or affected only through behavior. 

Finally, it should be noted that the difference in taxes between 1983 and 

1988 law reflects not only the TRA. but also intervening tax law changes. 

Table 4.3 provides a correspondence between the columns in Tables 4. 1A, 

4.18. 4.2A, and 4.28. and the 1983 Form 1040 and Schedule A (Fonn 1040), 

copies of which appear in the SOl publication. The number of returns count. 

associated with amounts indicates the number of returns filed with a nonzero 

entry on the corresponding amount line. 

Note that Table 4.1A shows an increase between 1983 law and 19881aw in 

the number of returns showing "Net income tax liability" (column 54). The 

increase in total is 2. 5 million returns. with most of that increase (I. 8 million returns) in the under $10.000 AGI class, and most of the rest (.4 million 

returns) in the $10,000 to $15.000 AGI class. There are two main reasons for 

this increase. First, the count of returns with net income tax liability 

includes those returns that are filed in order to claim an earned income 

credit refund, i.e .. returns with a negative income tax liability. The number 

of such returns increased by 3.5 million between 1983 and 1988 laws. Second. 

the TRA no longer allows dependents of another taxpayer to claim an exemption 

for themselves. Some 2.2 mmion dependents, all with AGI's below $15,000, 

that were not taxable under 1983 law are taxable under 1988 law. These 

dependents are included in the Table 4. I A counts of taxable returns and 

returns with net income tax liability under I 988 law. 

B. 1983 Economic Income of Families 

Table 4 .4 shows the relationship between tax return income sources and 

economic income as well as some basic tax variables. classified by the 

economic income of families. 4 The first set of columns (I-33) in Table 4.4 

corresponds directly to columns I - 15 and 17-35 in Table 4. I A. and the last set 

of columns (91-1 07) corresponds directly to columns 36. 38-43 and 46-55 in 

Table 4. 1A except that the units are families in Table 4.4 (returns in Table 

4. 1A). and the income classifier is economic income (AGI in Table 4. I A). 

Therefore, total amounts. but not the number of units or amounts by income 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 
I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

Tabulations from the Tax Reform Data Base 123 

Table 4.3 Correspondence between Tables 4.1A, 4.18, 

4.2A, 4.2B, and 1983 Form 1040 

Table Table Form 

4. 1A,B 4 .2A.B 1040 

Column Column Line 

I I N/A 

3 3 7 

5 5 8 

7 7 9c 

9 9 12 

II II 13 & 14 

13 13 16 & 17b 

15 15 18 & 19 

17 17 N/A 

19 19 10. II. 15. 20b, & 21 

21 21 22 

23 23 23 

25 25 24 

27 27 29 

29 29 25a 

31 31 26, 27 , 

28. & 30 

33 33 31 

35 35 32 & 33 

36 N/A 

37 N/A 

Comment 

Count of all returns filed, including returns filed only to obtain 

a refund of overwichholding or the earned income credit. 

Wages and salaries. 

Interest. 

Dividends in AGJ (i.e .• after exclusion under 1983 Jaw. total 

dividends under 1988 Jaw since exclusion repealed by TRA). 

Business income or loss. 

Capital gains in AGI (i.e .. after exclusion under 1983 taw. total 

capital gains under 1988 law since exclusion repealed by TRA). 

Pensions in AGI (under 1988 law. reflects TRA repeal of 3-year 

rule. a timing adjustment). 

Net rents. royalties, partnerships. etc .. and farm income (under 

1988 law. reflects phase-in of passive loss rules). 

Social Security benefits in AGI (1988Jaw only, since inclusion of 

a portion of Social Security benefits in AGJ was not effective 

until 1984). 

Other gross income (under 1988 law. reflects TRA disallowance of 

20 percent of business meal expenses. lower cap on 401 (k)s. and 

disallowance of certain deferred annuity contracts). 

Gross income. 

Mov n~ expense ( 1983 law only: TRA made into an itemized 

deduction-see "Miscellaneous itemized deductions "). 

Employee business expenses (1983 law only; TRA made into an 

itemized deduction-see "Miscellaneous itemized deductions"). 

Two-earner deduction ( 1983 Jaw only; repealed by TRA). 

IRA deduction (under 1988 law. reflects TRA phaseout by AGI of 

deductible IRAs for taxpayers covered by pensions). 

Other adjustments ( 1988 law does not include disability income 

exclusion , which was repealed effective in 1984). 

Total adjustments. 

Adjusted gross income (AGI). 

Count of nonitemizers (increases substantiallv between 1983 and 

1988 law. primarily due to the increase in the standard deduction 

and the repeal or restrictions on certain itemized deductions under 

TRA). 

Amount of standard deduction including additional standard deduction for the blind and elderly ( 1988 law only: replaced zero bracket amount. but subtracted from AGI in arriving at taxable income, 

rather than being built into rate schedule as was the ZBA). 
I 

124 James 

R. Nunns I 

Table 4.3 (continued) I 

38 N/A Count of itemizers. 

37 7, Sch. A Medical and dental expenses (under J 988law. reflects TRA increase I 

in floor from 5 percent of AGI to 

7.5 percent of AGI). 

39 8, Sch. A State and local income taxes. I 

41 9, Sch. A Real estate taxes. 

43 JOa&b, Sch

.A Sales taxes (1983 law only; repealed by TRA). I 45 II , Sch. A Other ta.xes. 

47 16, Sch. A Interest expense (under 1988 law. reflects phaseout of deduction I for consumer and excess investment interest). 

49 20, Sch. A Contributions. 

51 21 &25. Scb .A Miscellaneous itemized deductions (under 19881aw. includes combination of" miscellaneous" deductions and employee business ex- I 

penses. and immtion of 2 percent of AGI floor on this combined 

amount under :also includes movingex~nses under 1988law. I and casualty and theft losses under both 983 and 1988 laws). 

52 26, Sch. A Total 

itemized deductions. 

53 27, Sch. A Zerobracketamount(ZBA). includingunused ZBA(1 9831awonly: 

TRA replaced with standard deduction). I 

39 54 28, Sch. A Excess itemized deductions. 

40 55 6e Total number of exemptions (under 19881aw, reflects TRA repeal of 

allowance of exemption on the return of a dera:ndent of another I 

taxpayer, and repeal of the extra exemption or aged and blind 

taxpayers). 

41 56 36 Value of exemptions ($1 ,000/ exemption under 19831aw; $1.950/ I 

exemption under 1988 law). 

43 58 37 Taxable income [Note: always ~ 0]. I 

45 60 

N/A Taxable income less ZBA (computed; 1983 law only) [Note: added 

for comparison with 1988 law. for which the standard deduc-

I tion is subtracted in arriving at taxable income; always ~ 0]. 

47 62 40 Tax before credits (under 1983 law. reflects tax savings due to 

income averaging: under 1988 law. reflects TRA two-bracket rate 

I schedule, plus phaseouts of 15 percent bracket and of exemptions). 

49 64 48 Credits (under 1988 law. reflects 

r l of the investment tax 

credit and political contributions cr it; also reflects expira

tion I of energy credits under pre-TRA law). 

51 66 51 Allernativeminimumtalt(AMT)(under 19881aw. reflectstightening 

of provisions. but also removal of capital eains preference and the I estimated carryover AMT credit on pass1ve losses from 1987). 

53 68 59 Earned income 

credit (EIC) (under 19881aw. reflects higher credit 

rate as well as higher phaseout range). 

55 70 

N/A Net income tax liability (computed as tax before credits-c

redits + I 

AMT-EIC). 

I 
• Ill ~ ..... . .. .. • .. . .. .. ~ .. .. .. .. 

Table 4.4 Tax Return Income, Additional Items in Economic Income, 

and Tax Items for Families in 1983 

( 1983 Tax Law, 1983 Level and Distribution of Income) 

Business Income Capital Gains 

Wages & S&htries Interest Dividends in AGI or Loss in AGI Pensions in AGI 

Economic Number Number Number Number Number Number Number 

Income of of of of of of of 

Class• Families Families Amount Families Amount Families Amount Families Amount Families Amount Families Amount 

(000) (I) (2) (3) (4) l~l ~6! P> !8> !9! !10) !11) !12) (l3) 

(Number of Families in 000. Amounts in S miUions) 

Untler 10 14 .~3 1 Ml8 24,678 2.1141 .~10 371 721 784 (3.269) 484 2.521 1.057 7 ,989 

10 - 15 12.067 1.625 62.478 4,006 11.387 666 693 940 2. 102 534 933 1.424 8,982 

1.5 20 11.177 8,329 98,678 4,373 12. 178 734 1.202 994 2.779 ~94 946 1.215 7 ,67.5 

:!0 - 30 18.49K 1.5.211 269,.529 8.934 23.3.57 1.~73 3,250 1.932 6.33.5 1.423 2,208 1.922 12.926 ~ SP 

30 - ~0 21.74.5 19.426 .5.59.272 13 ,7.52 36.823 2.730 6 .319 2.709 12,183 2.431 4.470 2,09S 1.5.383 a' 

so - 100 11.653 10.609 478,760 9 .421 38.842 3 ,457 12.97.5 1,869 19.604 2,733 7 , 144 1.293 12,965 c: 

100 - 200 1.3211 1. 103 K1,7S8 1.263 13.498 869 9 .316 384 11.839 76.5 .5 .740 197 2 .862 ;-

200 & Over 364 295 .56.593 358 11 .207 298 12.728 122 13.703 270 20.413 41 1,033 s· -

::s 

Total 91.361 68.227 t .631.746 44.948 1.53.802 10.697 47.20.5 9 .73.5 6.5.27.5 9.233 44.37.5 9.244 69.8t4 Cll 

~ 0 

3 

NetRents.Royallties. -::r Partnership, etc . . Other Two-Earner n 

El·onom ic and Farm Income Gross Income ovi ~ Ex~ se Deduction IRAs 

~ Income No. ot No . ot No. ot No. Of' No. Of aa~s· Families Amount Families Amount Families Amount Families Amount Families AmOU(It 

(()()()) (14) (IS) (16) (17) 20 21 24 2.5 (26 27) ~ 

0' 

Under 10 934 (15.902) S62 (3.836) 7 ,473 19,411 39 61 107 368 124 37 .56 69 3 10 • IS 946 (1 .172) 787 134 9 ,612 8.5.534 118 163 217 646 407 1.56 294 .512 

1.5 20 1.118 (903) 1,319 842 9 ,750 123.396 178 269 504 1.083 871 4SO SSl 1.041 0 

20 . 30 2.244 (946) 3,701 3,318 17,02.5 319.973 348 .563 1.349 2,821 3,137 2,289 1,832 3.839 SP 

30 · 50 3.696 (1.339) 6.999 .5 . .58.5 20.804 638.689 486 1.124 2,.576 4,760 7,4.56 7 .791 4,806 11,316 i» 

50 . 100 3.239 1.346 4.664 4,)62 11.389 .575,793 314 1.112 1,74.5 3 .992 .5,174 6 .905 5.026 12.687 ~ 100 :!00 8 19 3.226 .534 892 1,319 129.131 311 289 224 1.020 426 688 788 2.035 ~ :!00 &Over 302 2 . .549 165 (627) 364 117,S97 9 89 46 342 70 130 220 .562 n 

Total 13.297 (13.141) IH.729 10.470 77.734 2.009.52.5 1 . .531 3.671 6 .839 15.033 17.666 111 .44.5 13 . .572 32.059 I N 

Ul 
Table 4.4 Economic: Income of Families - continued IN 

"' 

-.... Toiil Addendum: Nontaxed 

Other Total Adjusted Gross Adjustments to AGI Soci aJ Security SS & RR Under 1988 3 

Economic Adjustments Adjustments IIICODie (AGI) Under 1983 Law Amount~ and R.R Retirement Tu Law n 

Cit 

Income No. Of No. Of No. il No. Oi' Unreported No. ot No. Of , Oa55• Families Amount Families Amount Families Amount Families Amount Income Families Amount Families Amount 

(000) (28) (29) (30) 131) ~2~ !33~ wJ34~ i3S} !361 P7l 138! (39) (40) z (Num fllmilie:s in. Amounu in S millions) c 

::s 

Under 10 301 ~7 486 1.103 7,473 18,309 873 621 20.127 7,107 31,861 7,101 31 .686 ::s 

10 1.5 623 646 1,28.5 2.124 9.612 R3,410 1,749 1,24.5 18.196 4,717 28,791 4,7\.5 28.200 (II 

1.5 20 lt20 706 '2 . 103 3 . .549 9,7.50 119,847 2.466 2.137 21,889 3,691 23.98.5 3.689 23,190 

20 . 30 1,988 1,.50.5 6 .096 11 ,013 17.02.5 308.961 6.713 7.329 43,189 .5,280 34,291 .5,279 32.328 

30 · so 3.487 2.093 11,9.57 27,081 20.804 611,610 12,893 20.646 62,100 4,98.5 33,6.52 4,982 28,1.50 

50 . 100 2,.569 2.872 11.439 27,.548 11,389 .548.247 9.280 21.98.5 .51,212 2 • .51t9 17,129 2,.588 11 .992 

100 . 200 4411 1,884 1.041 .5 .909 1,319 123.223 1,229 4,252 14,6.57 332 2.314 332 1.360 

200 & Over 116 1.237 278 2,342 364 115,2.54 352 1.611 20 • .53.5 82 .577 82 304 

Total 10.3.53 11 . .51:! 31 .684 110.6611 77.734 1.9211 .1162 3.5,.5.54 .59.1127 251 ,903 211.7112 172.601 211.7611 1.57 .210 

Penston and 

Unemployment Workmen's Veterans' Profit Sharing Health and Medical 

Economic Com~nsation Com~nsatlon Benefits Food Stam~ Welfare Benefits Plans lnsuran~ 

lrll'Ome No. ot No. No. Of No. oi No. ot No. Of No.Oi' 

Cia.,:.• Families Amount Families Amount Families Amount Families Amount Families Amount Families Amount Families Amount 

(000) (41) !42) (43) (44) !4~ (46) ~~ !48) (49) 

(Num r of Families in, Amounts in S minions) 

!.50) !.51) (.52) !.53) (.54) 

Unut:r 10 906 1.331 297 .553 612 1.209 3.437 3,516 2.820 6.863 2,211 749 2,282 1.7.58 

10 1.5 1 . .537 3,024 423 920 4.59 1.207 2,838 3.201 1,698 4.879 3.712 2,083 4,072 3.996 

1.5 :!0 1 • .51t7 3.666 .513 1.071 479 1 . .576 1,962 2.221 1,21.5 3,.526 4,7.59 3 ,826 .5.201 .5,848 

20 30 1.983 5,107 1,044 2,779 847 3 ,124 1,786 2.029 1,262 3.974 10,421 13,040 11.293 14,347 

30 so 1.:!18 2.776 1.4.54 4,181 925 3,68.5 738 1,037 682 2.396 16,208 33,491 16.842 27.480 

.50 100 617 1.3.54 732 2,204 471 1,6.58 133 249 174 677 9,82.5 33,498 9.838 20.636 

100 200 .55 133 41 120 43 2.5.5 7 13 4 19 1,019 6.~ 1.006 2.282 

200 & Over s 8 14 39 • 18 0 0 0 0 274 4.377 266 613 

Total 7.907 17,399 4,.518 11.868 3.839 12.731 10 ,900 12.266 7 ,8.56 22,333 48,4111 97.120 .50.800 76.960 

-~--~-~~~~--~~-~~~~ 
~ • • 

Table 4.4 

Economic 

Income 

Class• 

!000) 

Under 10 

10 u 

IS 20 

20 - 30 

30 - so 

so - 100 

100 • 200 

200 & Over 

Total 

Ec.:onomic 

lnc.:ome Class• 

1000) 

Under 10 

10 IS 

IS 20 

20 • 30 

30 • so 

so - 100 

100 • 200 

200 & Over 

Total 

~ ... • .. ~ • .. .. .. .. . .. 

Economic Income of Families - continued 

Military BenetiiS Other Untued Earnings on Relll Pre-Tu Less: 

and Fringe Employer Less: Earnings on Lite Insurance, Corporate Economic Dividends betore 

Benefits Contributions Taxable Pensions Pension Funds IRA's and Keotth's Income Exclusion 

No. Of' No. Of No. Of' No. ot No. Of No. ot No:"Oi' 

Families Amount Families Amount Families Amount Families Amount Families Amount Families Amount Families Amount 

!SS} !S6~ !572 !S8) (59) ~60} (61) (62) ~l (64) !6S} !66) (67) (68) 

(Number OfamiGeS in 000, Amounts in S m ions) 

2,134 467 2,9S9 78 2,21S (10,476) 2.478 791 2,027 213 6,066 3.269 806 (848) 

2,916 1,278 S,007 2.SO 1,986 (10.233) 4,126 2,7S7 3,300 469 7,340 S,11l 1,048 (882) 

3 . 325 1,866 6,19S 440 l,S39 (8,663) S,l77 4,320 4.~ 803 8.057 8,411 1,131 (1,364) 

6,321 4,211 12.849 l.Jn 2,331 (14,130) 11 .102 13,032 8,798 2,432 1S,38S 23,807 2,4S7 (3.S9Sl 

9,237 7,03S 18,288 3,3S8 2,48S (16,390) 16.801 27,732 13.721 6.769 20 ,394 S2.013 4,483 (6,900) 

S,610 S,423 10,328 3,204 1,478 (13,693) 10,124 31.261 9,376 8,274 11.442 71,310 4,698 {13,719) 

644 942 l,OSS 473 209 (2,875) 1,057 6,147 1,209 2,667 1.319 28.4011 969 (9,492) 

174 684 2112 183 44 (1 ,036) 281 3.390 32S 1,19S 361 31.2118 316 (12.7118) 

30,421 21,908 .56,963 9 ,364 12,287 (77 ,496) Sl ,l46 89,430 42,809 22,822 70,36S 223,617 IS,908 (49.S87) 

Less: Dividends Less: of Pension & Capital Gains 

Insurance Funds in AGI 

No. ot No. Of 

Families Amount Families Amount 

(69) (70) (71) (72) 

4,007 (17S) 484 (2,S21) 462 16S S,826 (2,762) 1.287 1,948 1,1S2 1.27S 6 JS 

6.092 (S9S) S34 (933) 476 (71) 8,020 (S,160) 1,106 616 1.234 478 16 27 

7,0S2 (932) S94 (946) S34 230 8,S82 (S,897) 1.205 723 1.381 sso 21 19 

14,021 (2.809) 1,423 (2.208) 1.28S 388 1S,9SO (12.639) 2,333 I.S88 2,687 1.190 114 Ill 

19, 188 (6,004) 2,431 (4,470) 2,196 1,152 20,493 (22,214) 3,804 2,n1 4,433 1,946 290 4S6 

11,080 (6,782) 2.733 (7 , 144) 2,S4S 2,949 11 ,416 (24,348) 3,393 3,287 3,642 2,366 ...... 1,374 

1,2S4 (1,362) 76S (S,740) 712 2,141 1,315 (8 ,003) 922 2,0S6 876 1,472 299 3,0S6 

337 (7S0) 270 (20,413) 261 14,712 364 (6,989) 317 2,97S 307 2. 103 178 S.927 

63.032 (19,410) 9.233 (44,37S) 8 ,470 21,66S 71,966 (88,012) 14,36S IS,972 15,713 11 .381 1,367 l i ,OOS 

-.. 

~ c:r 

g 

0 

;::, 

(I> 

:::;> 

0 

a 

... 

::r 

0 

~ 

~ 

0' 

s 

~ = 

0 

~ 

N 

....... 

.. 
Table 4.4 Economic Income of Families - continued IN 

OQ 

.... Real Net Rental TOtal Adjust. from 

Value of Owner Other Economic 19113 Law AGI to Economic Income Amount of T01al 3 

Economic Occu~ed Housing Income Economic Income of Families No. of Eli.L"eSS No of Value of CD 

(II 

Income No. No. of No. Of No Of Non- No. of ltemiud Ell.emp- Ell.emp- ,a 011u• Families Amount Families Amount fllmilies Amount Families Amount ltemius ltemizrs Deductions tions lions 

(000) (83) (84) (85) (86) ~87! (88) !89! !90! !91! !92! j93! !94! !95) z (Number ot Fam•lies in 000. Amounts in S millions) c 

::I 

Under 10 5,724 4,512 S4 3,390 1~.469 67,949 14,530 86,257 13,819 713 3,630 14,203 14,203 ::I 

en 10 15 6,221 7,693 )4 -444 12,055 68,793 12.067 152.203 10,633 1.43S 6,026 22,486 21,486 

15 20 6,393 7.1!24 25 417 11.169 77,54-4 11 ,177 197,391 8,951 2,225 8 ,064 25,747 25.747 

20 30 11,278 11 ,780 41 877 18.486 154,615 18,498 463.575 12,229 6,269 24,918 50,505 50,505 

30 50 15,172 9 .5S6 98 1,743 21,745 249,998 21 ,145 861 ,603 9,019 12,727 62,650 71,403 71 ,403 

50 100 9.371 9,515 109 1,928 11.653 225.804 11 ,653 774,044 2,S66 9,087 66.3SO 44,910 44,910 

100 200 1.189 2.784 66 1.332 1,326 5-4.107 1.326 177.329 125 UOI 19,086 5,395 5,395 

200 & Over 326 1,694 70 4,478 364 54.432 364 169.684 24 341 17,796 1,447 1,447 

Total 55.673 55.357 498 14.6011 91.267 953.243 91,Yi0 2.8M2.01!5 57.365 33,9911 2011 .520 236,097 236.097 

Net Income 

Et:onomic T~Uable Income Tu Before Cmlits Tu Uability 

tm.uonc No. of No. ot No. of 

a a~,· Famihes Amount Families Amount Families Amount 

(000) (96) 97 (98) (99) (106) 107 

(Number of 

Under 10 5.325 22,S61 3.441 1,642 348 Ill! II 228 1,307 407 4,343 1,383 

10 15 11 .784 58.210 7,318 5,140 817 174 6 22 2,331 655 8,259 4,336 

15 -20 9.351 87,944 8,468 9,236 1,204 368 4 17 1,297 351 8.967 8,5-44 

20 30 16.715 236.079 16,114 29.3S6 3,047 912 12 41 863 237 16.213 28,2110 

30 so 20 ,6SR 480,334 20,469 72,609 S.862 1,834 45 244 340 99 20.445 70,967 

so 100 11 .343 439.812 11 ,316 85.049 4,516 2,014 lOS 498 65 21 11.294 83,607 

100 - 200 1,306 100,049 U04 29. 145 770 1.007 72 601 2 I 1..307 28,791 

200 & Over 356 99,372 3S6 43, 133 275 1.424 43 1.733 I 0 359 43,.517 

Total 73.838 1,524.361 68,787 275,311 16.838 7.822 299 3.3114 6.206 1.771 71.187 269.425 

• .. • • .. .. .. - .. - .. ~ .. .. . .. .. .. .. 
I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

Tabulations from the Tax Reform Data Base 129 

class will correspond for these columns. The remaining columns in Table 4.4 

(34-90) show the adjustments made to AGI (of filers) to derive the economic 

income of families. 

Two items in Table 4.4 require some clarification. "Adjustments to AGI 

Under 1983 Law" (column 35) are conceptually different in two respects from 

the "Total Adjustments" shown in column 33 of Table 4. 1A. First, Table 4.4 

includes only adjustments which must be added back to AGI to arrive at 

economic income (these adjustments are IRA and Keogh contributions, the two 

earner deduction, the penalty for early withdrawal of savings. and the disability income exclusion). Second, Table 4.4 includes the dividend exclusion 

as an adjustment. The other item requiring clarification is the "Amount of 

Unreported Income" (column 36). It includes alJ income earned by persons 

below tax filing thresholds, income earned by nonfilers who should be fiJers, 

and income underreported or not reported by tax filers. 

FOOTNOTES 

1 For a detailed description of the data base, see James Cilke and Roy Wyscarver, "The 

Treasury Individual Income Tax Simulation Model," Chapter 2 in this volume. 

2 This may be true even for analysts following precisely the same methodology if they are 

examining specific effects in states with differing marginal tax rates or differing definitions 

of the tax base. 3 See Howard W. Nester, "A Guide to Interpreting tht Dynamic Eltmtnts ofRtvtnut Estimates, " 

Chapter I in this volume, for a discussion of the behavioral changes assumed in making 

Treasury's revenue estimates for the Tax Reform Act of 1986. 4 For a detailed discussion of the concept of economic income and its relationship to other 

income concepts including AGI. see Susan Nelson, "Family Economic lncom'' and Other Income 

Concepts Used in Analyling Tax Reform." Chapter 3 in this volume. 

REFERENCES 

U.S. Department of the Treasury, Internal Revenue Service, Statistics of Income Division , 

Individual Income Tax Returns 1983. Washington, D.C.: Government Printing 

Office. November 1985.