Table 1--How noncorporate taxpayers will be taxed in 1987 (1) 
Tax filing status Effective marginal tax rate 
Married tax- 
payers filing 
joint return Single taxpayers Estates and trusts Long-term gains Ordinary income 
Dollars of taxable income Percent 
0-3,000 0-1,800 0-500 11 11 
3,000-28,000 1,800-16,800 500-4,700 15 15 
28,000-45,000 16,800-27,000 4,700-7,550 28 28 
45,000-90,000 27 ,000-54,000 7,550-15,150 28 35 
90,000 + 54,000 + 15,150 + 28 38.5 
(1) Two other categories of noncorporate taxpayers are not shown here-married taxpayers filing separate returns and heads of 
household. Some taxpayers in these categories are also in the 35-percent and 38.5-percent marginal tax brackets and thus will 
pay less tax on long-term gains. 
Table 2--How noncorporate taxpayers will be taxed in 1988 and later years (1) 
Tax filing status Effective marginal tax rate 
Married tax- 
payers filing 
joint return Single taxpayers Estates and trusts Long-term gains Ordinary income 
Dollars of taxable income Percent 
0-29,750 0-17,850 0-5,000 15 15 
29,750-71,900 17,850-43, 150 5,000-13,000 28 28 
71,900 + 43,150 + 13,000 + (2)33 (2)33 
(1) Two other categories of noncorporate taxpayers are not shown here—married taxpayers filing separate returns and heads of 
household. 
(2) A 5-percent surtax applies to taxable income within certain ranges. It also applies to married taxpayers filing separate returns and 
heads of households, in somewhat different tax ranges. The surtax is intended to phase out, respectively, the benefits of both the 
15-percent rate and the deduction for personal exemptions for higher bracket taxpayers. The 33-percent rate first applies up to that 
level of taxable income necessary to phase out the benefits of the 15-percent rate; i.e., $149,250, $89,560, and $26,000, respec- 
tively, for married taxpayers filing jointly, single taxpayers, and estates and trusts. The 33-percent rate is then applied to any taxable 
income above these levels until the benefit of the personal exemptions claimed are phased out; i.e., for 1988, $10,920, and for 1989, 
$11,200 of taxable income for every personal exemption claimed. At that level of taxable income at which the benefits of personal 
exemptions are entirely phased out, the tax rate returns to 28 percent. For example, in 1989, a married couple filing jointly and 
claiming two personal exemptions will be taxed at the 33-percent rate on taxable income between $71,900 and $171,650. Taxable 
income above $171,650 will be taxed at the 28-percent rate. 
