Here are highlights of the tax bill the Senate Finance Committee approved yesterday. The legislation would:
Cut taxes for individuals, beginning next Jan. 1, by raising the familiar $750 personal exemption now granted each taxpayer and dependent to $1,000, and adjusting the income tax brackets for inflation.
Scrap a House-pased provision exempting from taxes the first $100,000 in profit on the sale of a house, and instead raise the existing $35,000 exclusion for elderly home-sellers to $50,000, and make this existing provision available to homeowners of all ages.
Liberalize the "earned-income credit" for the working poor, raising it to 12 percent of the first $5,000 inearnings (to a maximum of 600), up from the present 10 percent of the first $4,000. Families with up to $11,000 in earnings could qualify for some relief under this plan.
Triple the cut in capital gains taxes approved by the House by exempting 70 percent of gains from the regular income tax, rather than the 50 percent allowed now.
Cut corporate tax rates to 46 percent (down from the present 48 percent), beginning in 1979, and reduce taxes on small businesses by imposing a new graduated income tax schedule for corporate earnings below $100,000
Allow companies a faster depreciation off on new machinery and equipment as an incentive to more investment. Firms would be permitted to shorten their write off time by 30 percent from previously prescribed schedules, rather that the 20 percent, under current law.
Making the existing "temporary" 10 percent investment tax credit permanent, and liberalize it so companies can use it to erase 90 percent of their tax liability in any year, instead of 50 percent, as now.