The Nation : Senator Details Tax Plan

Senate Finance Committee Chairman Bob Packwood (R-Ore.) proposed new standard deductions and income levels for various tax rates, filling in the last major pieces of his tax revision plan before the panel begins writing its proposal today. Packwood’s standard deduction would be $3,200 for single persons and $5,150 for joint returns. Currently, it is $2,390 for single taxpayers and $3,540 for joint returns. Also, under Packwood’s plan, married couples would not reach the top 35% tax bracket until they had $57,000 in taxable income. For single people, Packwood’s plan would have the 35% top rate begin at $35,000. To pay for these and some other changes, Packwood has suggested increases and adjustments to excise taxes.