TABLE 1


Table 1 Family-Sensitive Provisions Relating to Marital Status of Parent: Current Law, Flat Tax, USA Tax and 10-Percent Tax

Features of Tax Regimes	Current Law (1996)	Flat Tax (wage tax component)	USA Tax (personal tax component)	10-Percent Tax
Tax-exempt amounts for adult individuals:
married (per capita)	$5,900	$10,700*	$6,250	$6,925
single	6,550	10,700	6,550	7,750
head of household	8,450	14,000*	7,950	10,100
Total Exempt amount, 2-parent family of four (husband, wife, 2 children)	16,900	31,400*	17,600	19,350
Total exampt amount, 1-parent family of three (parent, 2 children)	13,550	24,000*	13,050	15,600
Marriage penalty from rate structure	yes	no	yes	yes
Marriage penalty from exemptions	yes	no	yes	yes
Alimony deduction	yes	no	yes	yes
Child-support deduction	no	no	yes	no

*Exemption does not appy to in-kind fringe benefits or employer share of FICA payroll tax, although both are fully taxable under business tax.
NOTE: The tax-exempt amounts do not include the amounts that would be exempt to low-income familes on account of the earned income tax credit.
Source: Michael J. McIntyre and C. Eugene Steuerle, Federal Tax Reform: A Family Perspective (1996, p. 44).