The Tax Reform Act of 1986 : its effect on both federal and state personal income tax liabilities Page: 6

                                
Table 1
Effects of The Tax Reform Act of 1986 on
Aggregate Federal and State Tax Uabilities, by Income Class
On Federal           On State
Income Class               Tax Uabllites       Tax Uabilltles
(In millions of dollars)
Less than $10,000            $-124.6              $ 801.8
$10,000-$20,000              -8,751.5               279.8
$20,000-$30,000              -8,815.7               488.8
$30,000-$50,000              -9,851.9             1,294.5
$50,000-$100,000             -4,786.8             1,878.8
Over $100,000               -14,154.1             1,495.1
Clases                 $ 4-35,932.9          $5,187.8
(In percent changes)
Less than $10,000               -5.4%                84.8%
$10,000-$20,000                -13.3                  4.8
$20,000-$30,000                 -8.8                  4.7
$30,000-$50,000                 -9.6                  6.2
$50,000-100,000                 -5.6                  8.3
Over $100,000                  -14.0                  9.1
AUll Classes                -10.1%                7.4%
Note: Figures taken from Tables 4 and 6. Detail may not add to totals
because of rounding.
Table 2
Effects of The Tax Reform Act of 1986 on
Aggregate Federal and State Tax Uabilities, by Provision
On Federal          On State
Tax Uabilitles     Tax Uabillltes
(In millions of dollars)
Group 1: Changes in itemized deductions                   $ 21,183.7            $ 2,571.4
Group 2: Changes in personal exemptions, standard
deductions and the earned income credit           -86,861.7               470.4
Group 3: Changes in tax rates                             -48,824.0                244.6
Group 4: All other changes,                                28,569.1              1,901.4
Total                                           $ -35,932.9            $ 5,187.8
(In percent changes)
Group 1: Changes in itemized deductions                         5.6%                 8.7%
Group 2: Changes in personal exemptions, standard
deductions and the earned income credit               -9.2                  0.6
Group 3: Changes in tax rates                                 -18.8                  0.3
Group 4: All other changes,                                     8.0                  2.8
Total                                                -10.1%                 7.6%
Note: Figures taken from Tables 5 and 7. Detail may not add to totals because of rounding.
1Repeal of the dividend income exclusion, full taxation of unemployment compensation, elimination of the two-earner
marriage deduction, restrictions on individual retirement account deductions, changes in depreciation rules, limitations
on passive losses, repeal of the investment tax credit, repeal of the political contributions credit, elimination of the capital
gains exclusion, and changes in the alternative minimum tax for individuals.