Cost-of-Living Tax Adjustment Act

Summary

Cost-of-Living Tax Adjustment Act - Provides under the Internal Revenue Code for automatic cost-of-living adjustments of income tax rates, based on the percentage by which the Consumer Price Index prepared for each calendar year exceeds the index for the month of December, 1972. States that the corporate surtax exemption for each taxable year shall be equal to $50,000 multiplied by the percentage by which the Consumer Price Index prepared each calendar year exceeds the Consumer Price Index for the month of December, 1974. Stipulates that the personal exemption shall be equal to $750 multiplied by the percentage by which the Consumer Price Index prepared each calendar year exceeds the index for December, 1972. Provides that the percentage standard deduction shall be equal to 16 percent of adjusted gross income but shall not exceed $2,600 increased by the cost-of-living adjustment in the case of a joint return, $2,300 increased by the cost-of-living adjustment in the case of an unmarried individual, or $1,300 increased by the cost-of-living adjustment in the case of a married individual filing a separate return. Makes similar adjustments in the low-income allowance. Defines cost-of-living adjustment as meaning the percentage (if any) by which the Consumer Price Index prepared each calendar year exceeds the index for December, 1974. Provides for annual adjustments in the withholding rate based on the applicable tax tables. Authorizes cost-of-living adjustments in the depreciation deduction and in the adjusted basis for property.

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1 official file

• Introduced in House

  summary · EN · 22 July 1975

  Open at official source

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