Page:United States Statutes at Large Volume 100 Part 3.djvu/291

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2099

"If taxable income is Over $38,000 but not over $80,000 Over $80,000 "(C)

The tax is: $7,550, plus 35% of the excess over $38,000. $22,250, plus 38.5% of the excess over $80,000. UNMARRIED INDIVIDUALS OTHER THAN SURVIVING

SPOUSES AND HEADS OF HOUSEHOLDS.—The table to apply for purposes of subsection (c) is as follows: "If taxable income is Not over $1,800 Over $1,800 but not over $16,800 Over $16,800 but not over $27,000 Over $27,000 but not over $54,000 Over $54,000

The tax is: 11% of taxable income. $198, plus 15% of the excess over $1,800. $2,448, plus 28% of the excess over $16,800. $5,304, plus 35% of the excess over $27,000. $14,754, plus 38.5% of the excess over $54,000.

"(D) MARRIED INDIVIDUALS FIUNG SEPARATE RETURNS.—

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The table to apply for purposes of subsection (d) is as follows:

"If taxable income is Not over $1,500 Over $1,500 but not over $14,000 Over $14,000 but not over $22,500 Over $22,500 but not over $45,000 Over $45,000

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The tax is: 11% of taxable income. $165, plus 15% of the excess over $1,500. $2,040, plus 28% of the excess over $14,000. $4,420, plus 35% of the excess over $22,500. $12,295, plus 38.5% of the excess over $45,000.

"(E) ESTATES AND TRUSTS.—The table to apply for purposes of subsection (e) is as follows:

"If taxable income is Not over $500 Over $500 but not over $4,700 Over $4,700 but not over $7,550 Over $7,550 but not over $15,150 Over $15,150

The tax is: 11% of taxable income. $55, plus 15% of the excess over $500. $685, plus 28% of the excess over $4,700. $1,483, plus 35% of the excess over $7,550. $4,143, plus 38.5% of the excess over $15,150."

(b) AMENDMENT OF SECTION 15.—Subsection (d) of section 15 (relating to effect of changes in rates during a taxable year) is amended to read as follows: "(d) SECTION NOT TO APPLY TO INFLATION ADJUSTMENTS.—This

section shall not apply to any change in rates under subsection (f) of section 1 (relating to adjustments in tax tables so that inflation will not result in tax increases)." SEC. 102. INCREASE IN STANDARD DEDUCTION.

(a) GENERAL RULE.—Section 63 (defining taxable income) is amended to read as follows: "SEC. 63. TAXABLE INCOME DEFINED.

"(a) IN GENERAL.—Except as provided in subsection (b), for purposes of this subtitle, the term 'taxable income' means gross income minus the deductions allowed by this chapter (other than the standard deduction). "(b) INDIVIDI/ALS WHO DO NOT ITEMIZE THEIR DEDUCTIONS.—In the

case of an individual who does not elect to itemize his deductions for

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