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Table A.—U.S. individual income tax: personal exemptions and lowest and highest bracket tax rates, and tax base for regular tax, tax years 1913-2003
Statistics of Income Bulletin, Fall, 2004
[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 income was 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 1 for 1988-1990 do not take into account the higher, 33-percent, "temporary" phaseout rate.
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[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 rate (column 4) does 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 10percent 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.
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 Ways 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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