Raise personal exemption from $1,040 to $1,500, raise standard deduction to between $5,950 and $5,750 for married couples, $4,775 and $4,625 for single heads of household and $3,525 and $3,425 for singles, depending on income and dependents.

Repeal income averaging.

Retain tax-exempt status of workers' compensation, disability payments and black-lung benefits.

Tax unemployment compensation as income.

Let taxpayers who use the standard deduction also deduct the amount of contributions to charity that exceeds $100.

Permit 75 percent of business-meal costs and 50 percent of business entertainment costs to be deducted.

Repeal $50 tax credit for contributions to political campaigns, retain $1 checkoff on tax forms to finance presidential campaigns.

Change the way large banks and thrifts account for reserves to cover bad loans. Retain tax-exempt status of credit unions.

Simplify inventory accounting for small business; adopt progressive business tax-rate structure; create tax credit for small manufacturers.

Limit use of tax-exempt bonds for quasi-government purposes but make permanent one type that benefits private business that was scheduled to expire. Target tax breaks for low-income housing more tightly to projects for the poorest renters by changing tax-exempt bonds and depreciation.

Let companies deduct 10 percent of the cost of dividends they pay after a phase-in period of 10 years.

Repeal exclusion that lets taxpayers receive first $100 of dividends tax-free for an individual and $200 for a couple.

Repeal tax advantages for Clifford trusts (prospectively) and custodial trusts (retroactively).

Require the accrual method of accounting for certain businesses with annual receipts above $5 million, except professional firms.

Require companies engaged in long-term contracts to report some of the income paid for that contract each year, rather than postponing it until completion.

Effectively force taxpayers to choose between individual retirement accounts and 401(K) plans. Every dollar contributed to a 401(K) would reduce the amount that can be contributed to an IRA by a dollar; employe-employer contributions to a 401(K) would be limited to $25,000 a year.