d. Double distilled spirits tax rate and increase wine and beer tax e. Increase wine tax rate to present beer tax rate. 0.4 0.4 0.4 1.1 f. Double beer tax rate and increase wine tax rate to increased (3) Wine.. 0.2 h. Repeal reduced distilled spirits tax on alcohol derived from wine (1) b. Index tobacco products tax at doubled rates. 3.0 c. Double present tobacco excise tax rates and extend to pipe 3.1 d. Increase present tobacco excise rates by 50 percent. 1.6 e. Triple present tobacco excise tax rates 5.7 3. Telephone tax a. Extend present excise tax for 3 years....... 1.3 b. Extend present tax for 3 years with 5-percent tax for mobile 1.3 c. Increase excise tax to 4 percent and extend for 3 years. 1.7 d. Phase-out present tax after 1-year extension (at 0.5 percent/ 1.3 1.2 1.2 0.6 0.2 3.1 3.5 3.1 1.6 e. Impose 10-percent excise tax on telephone equipment sold to 0.4 0.6 (1) 0.7 1.7 III. ESTIMATED REVENUE EFFECTS OF POSSIBLE OPTIONS TO INCREASE REVENUES, FISCAL YEARS 1988-90-Continued 4. Luxury taxes [Billions of dollars] Item 1988 1989 1990 1988-90 a. 10-percent tax on value of autos in excess of $20,000 0.3 0.4 b. 10-percent tax on value of boats, yachts in excess of $10,000. c. 10-percent tax on general aviation aircraft. d. 10-percent tax on value of furs. 0.1 0.1 e. 10-percent tax on value of consumer electronic entertainment products (including TVs, radios, stereo equipment, VCRs, video cameras, and related products) 1.5 2.8 3.0 7.3 f. 10-percent tax on value of jewelry and precious gemstones in excess of $100.. 0.2 0.4 0.4 1.1 5. Firearms (double rates of present excise taxes on firearms). 0.1 0.1 0.1 0.3 6. Pollution taxes a. Sulfur and nitrogen emissions tax of 45 cents per pound ($1 per pound of CFC-11 or equivalent in 1988, $2 in 1989, and $3 in 1990) (1) $1.25-per-barrel tax on all oil consumption 5.0 5.2 5.2 15.4 (2) $2.50-per-barrel tax on all oil consumption (3) $5-per-barrel tax on all oil consumption 8. Motor fuels taxes a. Increase by 5 cents per gallon. b. Increase by 10 cents per gallon... 15.7 9.7 8.7 34.1 c. Increase by 10 cents per gallon, plus index d. Increase gasoline tax by 5 cents per gallon. e. Increase gasoline tax by 10 cents per gallon f. Increase by 5 cents per gallon; extend to all fuels covered by LUST tax.. g. Increase by 10 cents per gallon; extend to all fuels covered by LUST tax.. 10.0 h. Collect gasoline tax at refinery gate. i. Collect diesel fuel and special motor fuels tax on sale to retailer..... 9. Gas guzzler tax a. Double tax b. Increase mileage limits 9.0 9.7 10.3 (1) 27.1 22.8 III. ESTIMATED REVENUE EFFECTS OF POSSIBLE OPTIONS TO INCREASE REVENUES, FISCAL YEARS 10. Increase Trust Fund taxes by an amount to compensate for— a. Implicit income tax offsets 4.4 4.7 4.9 14.0 b. Implicit income tax offsets plus revenue loss from tax-exempt bond financing... 9.2 9.8 10.1 29.0 11. FUTA tax a. Index FUTA wage base to increases in average national earnings (effective 1989) 0.2 b. Extend FUTA repayment tax for 3 years. 0.7 20 0.6 0.8 1.0 1.0 2.7 69.5 100.7 103.4 273.6 2. 5-percent VAT with exceptions for food, housing, and medical care....... 3. 7-percent BAMT 4 c. 5-percent individual surtax on tax over $10,000 3.1 6.2 7.4 16.7 d. 5-percent corporate surtax on tax over $10,000. e. Freeze 1987 rate schedule: (3) Permanent freeze with indexing (individual). 9.0 18.8 23.0 50.9 f. Impose 33-percent rate on income levels above phaseout of personal exemptions g. 38.5-percent top rate above $225,000 of income (for joint returns), 2. Across-the-board reduction in individual tax preferences (10 percent 3. Individual income tax provisions a. Credit for child and dependent care expenses: (1) Phaseout for AGI over $50,000 (ending at $88,000) b. Interest expense deduction on home equity loans: (2) $10,000 limit (other than education and medical). 3.4 4. Business meals and entertainment expenses a. Allow 75-percent deductibility. b. Allow 50-percent deductibility. 5. Employee benefits/pensions 0.2 1.7 22.7 (1) 0.1 0.3 0.6 (1) (1) 0.4 0.9 0.6 1.3 2.8 6.6 6.0 7.5 16.8 |