Table 3.-Tax Liability Under Present Law and Under Declining Percentage Earned Income Deduction with a Uniform 4 Point Increase in Tax Rates for Single and Various Types of Joint Returns, All with 4 Exemptions, at Selected Income Levels

a All tax computations on the table assume 4 exemptions and
deductions equal to the larger of the minimum standard
deduction or 10 percent of wage income.

bSince exemptions and deductions are the same for single
and joint, the ratio reflects only the difference in the tax rate
schedules.

COne-fifth is approximately the median proportion of family
income earned by working wives, that is, half earn more and half
earn less.

dWives very infrequently earn this proportion of family
income, but the case is shown to illustrate the maximum
deduction.

eThe ratio of new tax means, for example, that at the $5,000
income level after the earned income deduction and higher tax
rates a single person would pay 1.03 times as much tax as a
married couple with one earner; 1.96 times as much as a married
couple with two earners where the wife earns 1/5 of family
income; and 3.26 times as much as a married couple where the
wife earns 1/2 of family income.

ble 4.-Earnings of Married Women (Husband Present) as a Percent of Family Income in 1965, by

Table 5.-Estimated Number of Taxable Joint Returns With Wives Who Work and Wives Who Do Not

PART IV

Guiding Population Change