[20060628]RS22464_联邦个人所得税的PEP和Pease规定.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22464June 28, 2006The PEP and Pease Provisions of the FederalIndividual Income TaxGregg A. EsenweinSpecialist in Public FinanceGovernment and Finance DivisionSummaryThe personal exemption phaseout (PEP provision) and the limitation on itemizeddeductions (Pease provision) were enacted as part of the Omnibus BudgetReconciliation Act of 1990. In 2001, the Economic Growth and Tax ReliefReconciliation Act enacted a phased-in repeal of these provisions beginning in 2006.Repeal of these provisions greatly reduces the complexity of the federal individualincome tax. Repeal of these provisions, however, will reduce federal revenues byapproximately $33 billion over the next five years. In addition, the tax benefits fromrepeal of these two provisions are highly concentrated in the upper end of the incomespectrum.This paper will be updated as legislative action warrants or as new data becomeavailable. In October 1990, Congress passed the Omnibus Budget Reconciliation Act of 1990(OBRA90), an assortment of spending cuts and tax increases that was expected to reducethe federal budg