EXHIBIT 13 Comparison of combined normal tax and surtax rates under present law1 and under the House bill (H. R. 4790) 1 Internal Revenue Code, as amended by the Revenue Act of 1945. 2 Designates notch area under the House bill. The exact upper limit of the notch area is $1,395.83. 3 Tax is subject to the following maximum effective rate limitations: under present law, 85.5 percent; under the House bill, 77 percent. EXHIBIT 14 Estimated number of taxable income recipients distributed by the various percentage reductions provided under the House bill (H. R. 4790), in calendar year 1948, assuming personal income of $200,000,000,000 Chart I CONSUMERS' PRICE INDEX 1939 TO DATE Source: Bureau of Labor Statistics consumers' price index for moderate-income families in large cities. Office of the Secretary of the Treasury P-316-A Chart 2 EFFECTIVE RATES OF INDIVIDUAL INCOME TAX Present Law and House Bill (H.R. 4790) Married Person. No Dependents APPENDIX TABLE A.—Estimated number of taxable and nontaxable income recipients, their income and individual income tax under present law,1 in calendar year 1948, assuming personal income of $200,000,000,000 3 The number of persons paying normal tax is estimated to be less than 500 smaller than the number paying surtax. 4 Surtax net income. 5 Normal tax net income. • Net long-term capital gains subject to alternative tax. TABLE B.-Estimated number of taxable income recipients under present law, their surtax net income and combined normal tax and surtax, distributed by surtax net income brackets, in calendar year 1948, assuming personal income of $200,000,000,000 [Number of income recipients in thousands; money amounts in millions] 1 Internal Revenue Code, as amended by the Revenue Act of 1945. 2 Normal tax and surtax were obtained separately by applying the appropriate rates to normal tax and surtax net income. Since normal tax net income is somewhat less than surtax net income, these amounts will differ slightly from the result obtained by applying the combined rates to surtax net income. 3 Less than 0.005 percent. + Excludes amounts subject to the alternative tax. NOTE.-Figures are rounded and will not necessarily add to totals. TABLE C.-Estimated number of taxable income recipients under present law,1 their net income before exemptions, surtax net income and total tax, distributed by net income classes, in calendar year 1948 (assuming personal income of $200,000,000,000) [Number of income recipients in thousands; money amounts in millions] 1 Internal Revenue Code, as amended by the Revenue Act of 1915. ? Includes amounts subject to the alternative tax. 3 Includes normal tax, surtax, and alternative tax on net long-term capital gains. 4 Less than 0.05 percent. TABLE D.-Number of taxable individual and fiduciary returns, tax and net income, 1913–46, and estimated for 1947-48 Tax (1) (1) (1) eee 362, 970 2, 501, 166 2, 523, 063 2 $28, 254, 000 2 41,046, 000 2 67,944, 000 173, 387, 000 4 795, 381, 000 1, 127, 722, 000 1, 269, 630, 000 1,075, 054, 000 719, 387,000 861,057, 000 6 661, 666,000 704, 265, 000 734, 555,000 732, 475,000 830, 639,000 1, 164, 254, 000 1,001, 938,000 476, 715,000 246, 127, 000 329,962, 000 374, 120, 000 511, 400, 000 657, 439, 000 1, 214, 017, 000 1, 141, 569, 000 765, 833,000 928, 694, 000 1, 496, 403, 000 3,907, 951, 000 8, 926, 712, 000 Net income $6,037, 233,000 5 10, 592, 987, 000 13, 892, 776, 000 17,691, 620, 000 20, 228, 959,000 13, 409, 685,000 15,043, 514, 000 17, 497, 383, 000 19, 468, 724, 000 17, 471, 219, 000 17,422, 633, 000 18, 090, 065, 000 21, 031, 634, 000 20, 493, 491, 000 13, 692, 584, 000 9, 297, 018, 000 7,919,588,000 7,372, 660,000 8,343, 558,000 10, 034, 106, 000 14, 218, 854, 000 15, 264, 162, 000 12, 671, 537, 000 15, 803, 945, 000 23, 558, 030, 000 45, 902, 884, 000 67,060, 862, 000 |