Standard Deductions Tentatively Raised by Panel

The House Ways and Means Committee voted Tuesday to raise standard deductions considerably above levels proposed by President Reagan and defeated Republican efforts to raise personal exemptions to the $2,000 recommended by Reagan.

The tentative decisions--if made final when the committee completes action on a broad overhaul of the tax system--would result in a $1,500-per-person exemption and standard deductions of $5,959 for couples filing joint returns; $3,525 for single persons and $4,775 for heads of households, which usually are divorced women with children.

Each taxpayer would be allowed an additional $500 deduction for each dependent, plus an extra $500 for any taxpayer who is blind or over 65.

Tentative Repeal

The committee also agreed tentatively to repeal the special deduction of up to $3,000 now allowed two-earner couples. Committee aides say the goal of that deduction--reducing the tax penalty such couples pay because they are married--would be met by the higher standard deduction and the changes anticipated in tax rates and brackets.

All the decisions were made behind closed doors and relayed to reporters by committee staff members.

Another agreement would raise the value of the earned-income credit that benefits poor working families with children and extend it to a greater number of people. The credit allows such families to reduce their taxes by 11% of the first $5,000 of earned income. The maximum credit of $550 is available to those with incomes up to $6,500, then it begins phasing down before disappearing at the $11,000 level.

More Liberal Proposal

The committee proposal, somewhat more liberal than Reagan recommended, would raise the credit to 14% of the first $5,000 earned and make the maximum credit of $700 available to those with incomes up to $9,000. The credit would phase out at $16,000.

The credit is claimed by nearly 7 million families.

It is considered likely that the committee will make more changes in the personal exemptions and standard deductions tentatively approved Tuesday. Members spent most of the day discussing several alternative ways of adjusting those two provisions in ways that would provide more benefits to middle-income people and less to the rich. Still more options are being drafted.