Here are the major provisions of the Senate's tax bill.
Increase the familiar $750 personal exemption now granted every taxpayer and all dependents to $1,000, adjusting the tax rates for inflation and raising the standard deduction, now known as the zero bracket amount, to $2.300 for single persons and $3.400 for couples, up from $2.200 and $3.200 now. These various changes would replace the current general tax credit, under which taxpayers may reduce their taxes by $35 for themselves and each dependent or 2 percent of the first $9,000 in income above the zero bracket amount, whichever is greater.
Liberalize the earned income credit for the working poor, raising it from the present maximum of $400 to a top break of $600, and extending it to cover families earning up to $11,000, rather than the $8,000 cutoff point now.
Those too poor to pay taxes and thus benefit from a tax credit would receive weekly cash payments through the withholding system, with the refunds simply added to their take-home pay - in some cases leaving them with paychecks larger than their gross wages.
Increase the present $35,000 exclusion for homeowners over 65 to $100,000, and extend the tax break to apply to persons 55 and over, rather than the 65 age limit in current law. As in present law, a home seller could claim the writeoff only once.
Reduce the corporate tax rate from the present 48 percent to 46 percent in 1979, dropping gradually to 44 percent in 1981.
Make permanent the 10 percent investment tax credit for business and allow companies to use it to offset 90 percent of their other tax liability, rather than the present 50 percent. Companies also could use the credit for rehabilitating existing buildings.
Cut capital gains taxes sharply by exempting 70 percent of a capital gain from regular income taxes, rather than the present 50 percent. The bill also would scrap the current the 15 percent minimum tax and replace it with a new alternative minimum tax that would be easier on most investors but crack down on tax shelter abuse.
The reduction in capital gains taxes would begin Nov. 1, but the new minimum tax provision would not go into effect unitl Jan. 1.
Give a spate of special-interest tax breaks to specific industries and corporations, including new writeoffs for sod farmers, pig pens, chicken farmers in Arkansas and Maine and airlines. In general, most of the tax reductions would take effect next Jan. 1.