3 Tax Reform Proposals Put Before Congress

Three proposals for some of the most sweeping changes in the 72-year history of federal income taxes were introduced in Congress today amid doubts that any action will be taken before 1986.

But some of the sponsors of competing plans have not given up hope of passage this year. They agree that the future of tax simplification depends on how strongly President Reagan gets behind the movement.

“We must have the support of the President,” Rep. Richard A. Gephardt (D-Mo.) told a news conference.

“The President of the United States is deeply committed,” said Rep. Jack Kemp (R-N.Y.). “His commitment . . . makes this more than just another tax simplification effort.”

The three major tax proposals outlined today for consideration by Congress all are refined versions of proposals made last year. Here are major changes affecting individuals:

--A plan sponsored by Sen. Bill Bradley (D-N.J.) and Gephardt would compress the present tax-rate structure (15 rates for single people, 14 for joint returns) into three.

While current brackets range from 11% to 50%, the Bradley-Gephardt plan would have only three--14%, 26% and 30%. Three-quarters of taxpayers would pay only the 14% rate.

Numerous deductions would be eliminated, and personal exemptions and standard deductions would be increased.

--The proposal sponsored by Kemp and Sen. Bob Kasten (R-Wis.) would have a single 24% tax rate. The first 20% of wages subject to Social Security tax--$39,600 this year--would be exempt from income taxes, in effect, giving the plan two tax rates. Exemptions and standard deductions would be raised.

--The “flat tax,” sponsored by Sen. Dennis DeConcini (D-Ariz.) would apply a single 19% tax rate to all taxable income. All deductions would be repealed.