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From: mark@cbosgd.UUCP (Mark Horton)
Newsgroups: net.taxes,net.invest
Subject: Re: Marginal Tax Rates and the Senate Tax Bill
Message-ID: <2352@cbosgd.UUCP>
Date: Mon, 28-Jul-86 12:26:24 EDT
Article-I.D.: cbosgd.2352
Posted: Mon Jul 28 12:26:24 1986
Date-Received: Mon, 28-Jul-86 22:37:44 EDT
References: <5314@sun.uucp>
Distribution: na
Organization: AT&T Bell Laboratories, Columbus, Oh
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Xref: mnetor net.taxes:507 net.invest:1050

In article <5314@sun.uucp> dgh@sun.UUCP writes:
>                        32% bracket             27%+n*1.35% bracket
>
>Single                  45000-87240              87240-127240
>Married joint           75000-145320            145320-185320

Let me get this straight.  If I'm married and our combined income
is under $75,000, we'll be taxed at the 15% rate?  Sounds to me like
that covers most of the middle class.  I'm not in any danger of
breaking into the 32% bracket in the forseeable future.  (Send job
offers at over $75K to...)

Which "income" does this refer to?  Gross receipts, before (schedule C)
business expenses?  Adjusted gross income?  AGI after exemptions?  Taxable
income after deductions?

Another thing I've been wondering.  There is so much worry about the IRA
being deductable, yet there has never been any question about the 401K.
Even under the latest horror threat from the House-Senate group, they
would limit the 401K to $5000/year, which is 150% better than an IRA.
The 401K does stay deductable, doesn't it?  Or are they going to tax our
contributions to it, too?

	Mark