CRS GETS ACTS TOGETHER.
91-234 E
- AuthorsTalley, Louis Alan
- Institutional AuthorsCongressional Research Service
- Index TermsCRS
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 91-2021
- Tax Analysts Electronic Citation91 TNT 58-46
Louis Alan Talley
Research Analyst in Taxation
Economics Division
April 20, 1990
Revised March 4, 1991
SUMMARY
This report provides a chronological listing of all significant Federal tax laws by popular name. Also included is the public law number for each of these acts. This listing is not a complete one. There are other laws (not included here) which have changed the Internal Revenue Code but because their impact was slight we have chosen not to include them in this tabulation. Also not included in this listing are tariff bills and social security legislation unless other significant tax provisions were included in the same legislation.
The revenue projections have typically come from the conference report but, when not available from that source, may have been derived from the House and/or Senate reports on the tax bill. Of course, the estimates are based on the House or Senate report most closely akin to the finally enacted tax act. These revenue estimates do not reflect actual revenues raised. The revenue estimates should be considered "ball park" estimates and not precise dollar amounts. In all cases, the best data available has been provided.
These projected revenue effects should not be added or subtracted to come up with overall figures for total tax cuts or increases over several years. One reason is that price level changes and growth in the economy tend to increase the revenue effect. As a consequence, the same tax provision, if adopted in different years, would have different revenue effects. Stated simply, revenue estimates made in different years are made on different bases and therefore should not be added or subtracted. An additional reason why the projected revenue effects should not be added or subtracted is that several acts contain provisions which were later modified or removed from the tax laws, so that an accurate tax revenue projection would require adjustment to reflect revenue effects in later years. It should also be remembered that revenue estimates are just that -- estimates -- based on assumptions and projections of future activity rather than a compilation of data on events that have already transpired.
TABLE OF CONTENTS
TABLE 1. Principal Tax Acts 1954-1990: Revenue Estimates
TABLE 2. Principal Tax Acts 1954-1990: Public Law Numbers
TAXES: SIGNIFICANT FEDERAL TAX ACTS, 1954-1990
This report provides a listing by popular name of significant tax acts passed since enactment of the Internal Revenue Code of 1954. Public Law numbers and revenue increases and decreases projected at the time of enactment are given herein. Not included in this listing are tariff bills and social security legislation.
The revenue projections have come from a variety of sources. Because some of the revenue estimates for the earlier acts come from committee reports, hearings, etc., they are based on the House or Senate bill most closely akin to the finally enacted tax act. As such, these early revenue projections might not be as accurate as if new estimates had been made either shortly before or after each act became law. They do not reflect actual revenues raised; that information, with the exception of the Crude Oil Windfall Profit Tax Act of 1980, does not exist. The revenue estimates given in this report, then, should be considered "ball park" estimates and not precise dollar amounts. Before 1966, revenue estimates were generally made only for the year immediately following passage. In recent years, revenue estimating has become more sophisticated and revenue projections are made for an increased number of years. In all cases, we have provided the best data available. For some acts (particularity those before 1966), no dollar estimate is available. In those cases, only the general direction of an increase or decrease in revenues is provided.
These projected revenue effects should not be added or subtracted to come up with overall figures for total tax cuts or increases over several years. One reason is that price level changes and growth in the economy tend to increase the revenue effect. As a consequence, the same tax provision, if adopted in different years, would have different revenue effects. Stated differently, revenue estimates made in different years are made on different bases and therefore should not be added or subtracted. An additional reason why the projected revenue effects should not be added or subtracted is that several acts contain provisions which were later modified or removed from the tax laws, so that an accurate tax revenue projection would require adjustment to reflect revenue effects in later years. It should be borne in mind that revenue estimates are just that -- estimates -- based on assumptions and projections of future activity rather than a compilation of data on events that have already transpired.
The Crude Oil Windfall Profit Tax Act of 1980 required the Department of Treasury to estimate the amount of revenues derived each year from the tax and report those findings to Congress. It is worth noting that there is disparity between the amount of revenues estimated by Congress when the Act was passed and the amount of revenues actually raised. This is most evident in FY 1982 and FY 1983. For FY 1982, the Joint Committee on Taxation (JCT) had estimated that the tax would generate $16.9 billion; yet only $9.5 billion was raised. For FY 1983, the JCT estimate was $17.7 billion, but only $5.7 billion was raised.
This example illustrates the point that the revenue figures presented were based on projections of future economic behavior. Because the level of tax revenues collected by the Federal Government is strongly influenced by the level of the economic activity, an unforeseen downswing (or upswing) in the economy can result in less (or more) revenue being generated by each act.
Another example can be found by examining the Tax Equity and Fiscal Responsibility Act of 1982. When the Act was passed, both JCT and the Congressional Budget Office (CBO) predicted that approximately $18.0 billion would be raised in FY 1983, $37.7 billion in FY 1984, and $42.7 billion in FY 1985 (estimates for later years differed). However, due to the actual performance of the economy in FY 1983, and revised economic projections for FY 1984 and FY 1985, CBO (in February 1985) reduced its estimates of the revenue effects of the Act. CBO estimated that $16 billion was raised in FY 1983, and projected that $34 billion would be raised in FY 1984, $37 billion in FY 1985.
Table 1, which follows, lists the principal tax acts and their projected revenue effects. Table 2 gives the public law numbers of the individual tax acts.
TABLE 1.
PRINCIPAL TAX ACTS 1954-1990: REVENUE ESTIMATES
______________________________________________________________________
Internal Revenue Code of 1954 $1.4 billion increase
Tax Rate Extension Acts of 1955, 1956, Continued corporate rates;
1957, 1958, 1959, and 1960 $2.5 billion increase
Technical Amendments Act of 1958 Number of technical
changes, particularly
tobacco and alcohol
Life Insurance Company Income Tax Revision of the method of
Act of 1959 taxing life insurance
companies
Tax Rate Extension Acts of 1961, 1962, Continued corporate and
and 1963 excise tax rates at
current levels
The Revenue Act of 1962 $1.245 billion decrease in
Fiscal 1963
The Revenue Act of 1964 Decrease
Excise Tax Rate Extension Act of 1964 Continued Korean War
excise taxes an additional
year
Interest Equalization Tax Act of 1964, Increases of less than $1
Extensions in 1965, 1967 and 1969 billion
Tax Adjustment Act of 1966 $1.1-2.1 billion increase
in Fiscal 1966; $4.8
billion increase in Fiscal
1967
Federal Tax Lien Act of 1966 Administrative changes
Foreign Investors Tax Act of 1966 Decrease
Revenue and Expenditure Control $1-1.1 billion increase in
Act of 1968 Fiscal 1968; $2.9-3.1
billion increase in Fiscal
1969
Tax Reform Act of 1969 /a/ $6.4 billion increase in
Fiscal 1970; $0.3 billion
increase in Fiscal 1971
Revenue Act of 1971 Decrease
Tax Reduction Act of 1975 2.8 billion decrease
Tax Reform Act of 1976 $15.733 bil. decrease in
Fiscal 1977
$12.785 bil. decrease in
Fiscal 1978
$ 6.849 bil. decrease in
Fiscal 1979
$ 7.364 bil. decrease in
Fiscal 1980
$ 6.191 bil. decrease in
Fiscal 1981
Tax Reduction and Simplification $ 2.607 bil. decrease in
Act of 1977 Fiscal 1977
$17.751 bil. decrease in
Fiscal 1978
$13.819 bil. decrease in
Fiscal 1979
Revenue Act of 1978 $19.262 bil. decrease in
Fiscal 1979
$37.509 bil. decrease in
Fiscal 1980
$44.214 bil. decrease in
Fiscal 1981
$52.132 bil. decrease in
Fiscal 1982
$58.030 bil. decrease in
Fiscal 1983
Crude Oil Windfall Profit Tax The windfall profit tax is
Act of 1980 expected to raise $3.1
billion, with various
reductions of $57 million
in FY 80. In the following
year, $13.4 billion
will be raised with $564
granted in reductions.
The amounts continue to
increase in the
following years.
Economic Recovery Tax Act of 1981 $ 1.565 bil. decrease in
Fiscal 1981
$ 37.656 bil. decrease in
Fiscal 1982
$ 92.732 bil. decrease in
Fiscal 1983
$149.963 bil. decrease in
Fiscal 1984
$199.202 bil. decrease in
Fiscal 1985
$267.742 bil. decrease in
Fiscal 1986
Tax Equity and Fiscal Responsibility $17.959 bil. increase in
Act of 1982 Fiscal 1983
$37.664 bil. increase in
Fiscal 1984
$42.698 bil. increase in
Fiscal 1985
$51.835 bil. increase in
Fiscal 1986
$63.931 bil. increase in
Fiscal 1987
Deficit Reduction Act of 1984 $ 1.143 bil. increase in
Fiscal 1984
$10.602 bil. increase in
Fiscal 1985
$16.594 bil. increase in
Fiscal 1986
$22.536 bil. increase in
Fiscal 1987
$25.270 bil. increase in
Fiscal 1988
$27.180 bil. increase in
Fiscal 1989
Tax Reform Act of 1986 $11.538 bil. increase in
Fiscal 1987
$16.705 bil. decrease in
Fiscal 1988
$15.128 bil. decrease in
Fiscal 1989
$ 8.048 bil. increase in
Fiscal 1990
$11.990 bil. increase in
Fiscal 1991
Omnibus Budget Reconciliation $ 9.413 bil. increase in
Act of 1987 Fiscal 1988
$14.415 bil. increase in
Fiscal 1989
$15.825 bil. increase in
Fiscal 1990
Technical and Miscellaneous Revenue $421 mil. increase in
Act of 1988 Fiscal 1989
$414 mil. increase in
Fiscal 1990
$421 mil. increase in
Fiscal 1991
Revenue Reconciliation Act of 1989 $5.628 bil. increase in
Fiscal 1990
$3.638 bil. increase in
Fiscal 1991
$3.524 bil. increase in
Fiscal 1992
$5.133 bil. increase in
Fiscal 1993
$6.738 bil. increase in
Fiscal 1994
Revenue Reconciliation Act of 1990 $17.607 bil. increase in
Fiscal 1991
$30.222 bil. increase in
Fiscal 1992
$27.452 bil. increase in
Fiscal 1993
$31.421 bil. increase in
Fiscal 1994
$30.467 bil. increase in
Fiscal 1995
FOOTNOTE TO TABLE 1
/a/ Long-run effect = $2.5 billion decrease.
TABLE 2.
PRINCIPAL TAX ACTS 1954-1990: PUBLIC LAW NUMBERS
______________________________________________________________________
Internal Revenue Code of 1954 August 16, 1954 Public Law 83-591
Tax Rate Extension Act of 1955 March 30, 1955 Public Law 84-18
Tax Rate Extension Act of 1956 March 29, 1956 Public Law 84-458
Tax Rate Extension Act of 1957 March 29, 1957 Public Law 85-12
Tax Rate Extension Act of 1958 June 30, 1958 Public Law 85-475
Technical Amendments September 2, 1958 Public Law 85-866
Act of 1958
Life Insurance Company Income June 25, 1959 Public Law 86-69
Tax Act of 1959
Tax Rate Extension Act of 1959 June 30, 1959 Public Law 86-75
Tax Rate Extension Act of 1960 June 30, 1960 Public Law 86-564
Tax Rate Extension Act of 1961 June 30, 1961 Public Law 87-72
Tax Rate Extension Act of 1962 June 28, 1962 Public Law 87-508
The Revenue Act of 1962 October 16, 1962 Public Law 87-834
Tax Rate Extension Act of 1963 June 29, 1963 Public Law 88-52
The Revenue Act of 1964 February 26, 1964 Public Law 88-272
Excise Tax Rate Extension June 30, 1964 Public Law 88-348
Act of 1964
Interest Equalization Tax September 2, 1964 Public Law 88-563
Act of 1964
Interest Equalization Tax October 9, 1965 Public Law 89-243
Act of 1965
Tax Adjustment Act of 1966 March 15, 1966 Public Law 89-368
Federal Tax Lien Act of 1966 November 2, 1966 Public Law 89-719
Foreign Investors Tax November 13, 1966 Public Law 89-809
Act of 1966
Interest Equalization Tax July 31, 1967 Public Law 90-59
Act of 1967
Revenue and Expenditure June 20, 1968 Public Law 90-364
Control Act of 1968
Interest Equalization Tax November 26, 1969 Public Law 91-128
Act of 1969
Tax Reform Act of 1969 December 30, 1969 Public Law 91-172
Revenue Act of 1971 December 10, 1971 Public Law 92-178
Tax Reduction Act of 1975 March 29, 1975 Public Law 94-12
Tax Reform Act of 1976 October 4, 1976 Public Law 94-455
Tax Reduction and Simplification May 23, 1977 Public Law 95-30
Act of 1977
Revenue Act of 1978 November 6, 1978 Public Law 95-600
Crude Oil Windfall Profit Tax April 2, 1980 Public Law 96-223
Act of 1980
Economic Recovery Tax August 13, 1981 Public Law 97-34
Act of 1981
Tax Equity and Fiscal September 3, 1982 Public Law 97-248
Responsibility Act of 1982
Deficit Reduction Act of 1984 July 18, 1984 Public Law 98-369
Tax Reform Act of 1986 October 22, 1986 Public Law 99-514
Omnibus Budget Reconciliation December 22, 1987 Public Law 100-203
Act of 1987
Technical and Miscellaneous November 10, 1988 Public Law 100-647
Revenue Act of 1988
Revenue Reconciliation December 19, 1989 Public Law 101-239
Act of 1989
Revenue Reconciliation November 5, 1990 Public Law 101-508
Act of 1990
- AuthorsTalley, Louis Alan
- Institutional AuthorsCongressional Research Service
- Index TermsCRS
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 91-2021
- Tax Analysts Electronic Citation91 TNT 58-46