This paper examines the recent claims that the published 1982 tax return data show that the tax cut in the Economic Recovery Tax Act of 1981 induced upper-income taxpayers to relay less heavily on tax shelters and to pay more, not less, income tax. The report indicates that the tax return data neither prove nor disprove these claims because they do not enable separating other effects, for example, normal income growth and short-term tax planning activities, from the long-term incentive effects of the tax cut. The implications for tax equity are also discussed.
Abstract -- Introduction and Summary -- The Controversy and Recent Claims -- An Examination of the Upper-Income Tax Return Data -- A Brief Examination of the Equity Issue.
CRS 84-702 E
"July 31, 1984."
SuDoc# LC 14. 18/3
