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FEDERAL INCOME TAX REFORM:
A REVIEW OF TWO PROPOSALS
 
 
Staff Working Paper
 
 
Prepared at the Request of
Senator Lawton Chiles
Senate Budget Committee
 
 
October 1984
 
 

This report was prepared by Kathleen M. O'Connell and Hyman Sanders of the Tax Analysis Division, under the direction of Rosemary D. Marcuss, Assistant Director. Questions regarding the analysis may be addressed to Ms. O'Connell.

 
 
INTRODUCTION

The federal income tax system has been the subject of much discussion recently, in part because it has been the subject of much dissatisfaction. Several Members of Congress have introduced proposals for income tax reform that attempt to correct a variety of flaws in the system. Two widely discussed reform proposals--S. 1472/H.R. 3271 introduced jointly by Senator Bill Bradley and Representative Richard Gephardt, and S. 2948/H.R. 6165 introduced jointly by Senator Robert Kasten and Representative Jack Kemp--would modify the existing tax by broadening its base and lowering its rates.1

This paper outlines problems of the current system, describes the major provisions of both bills and the differences between them, and analyzes some of the consequences that might arise in switching to a "modified flat" tax system such as the ones being proposed.

This document is available in its entirety in PDF.

1. S. 1472/H.R. 3271 is commonly referred to as the Bradley-Gephardt plan. S. 2948/H.R 6165 is known as the Kemp-Kasten plan. Some information on the two plans was provided by members of the Senators' and the Representatives' staffs. Attitudes on Governments and Taxes (Washington, D.C., ACIR, 1983).