PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2097
taxable under this subsection a tax determined in accordance with the following table: "If taxable income is Not over $5,000 Over $5,000
The tax is: 15% of taxable income. $750, plus 28% of the excess over $5,000.
"(f) ADJUSTMENTS IN TAX TABLES SO THAT INFLATION WILL NOT RESULT IN TAX INCREASES.—
"(1) IN GENERAL.—Not later than December 15 of 1988, and each subsequent calendar year, the Secretary shall prescribe tables which shall apply in lieu of the tables contained in subsections (a), (b), (c), (d), and (e) with respect to taxable years beginning in the succeeding calendar year. "(2) METHOD OF PRESCRIBING TABLES.—The table which under paragraph (1) is to apply in lieu of the table contained in subsection (a), (b), (c), (d), or (e), as the case may be, with respect to taxable years beginning in any calendar year shall be prescribed— "(A) by increasing the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed under such table by the cost-of-living adjustment for such calendar year, "(B) by not changing the rate applicable to any rate bracket as adjusted under subparagraph (A), and "(C) by adjusting the amounts setting forth the tax to the extent necessary to reflect the adjustments in the rate brackets. "(3) COST-OF-UVING ADJUSTMENT.—For purposes of paragraph
(2), the cost-of-living adjustment for any calendar year is the percentage (if any) by which— "(A) the CPI for the preceding calendar year, exceeds "(B) the CPI for the calendar year 1987. "(4) CPI FOR ANY CALENDAR YEAR.—For purposes of paragraph (3), the CPI for any calendar year is the average of the (Consumer Price Index as of the close of the 12-month period ending on August 31 of such calendar year. "(5) (I!oNSUMER PRICE INDEX.—For purposes of paragraph (4), •- the term 'Consumer Price Index' means the last Consumer Price Index for all-urban consumers published by the Department of Labor. For purposes of the preceding sentence, the revision of the Consumer Price Index which is most consistent with the (Consumer Price Index for calendar year 1986 shall be used. "(6) ROUNDING.—
"(A) IN GENERAL.—If any increase determined under paragraph (2)(A), subsection (g)(4), section 63(c)(4), or section 151(d)(3) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. -iv.)
..,,.
"(B)
TABLE
FOR MARRIED
INDIVIDUALS FILING
SEPA-
RATELY.—In the case of a married individual filing a separate return, subparagraph (A) (other than with respect to section 63(c)(4)) shall be applied by substituting '$25' for '$50' each place it appears.
"(g) PHASEOUT OF IS^PERCENT RATE AND PERSONAL EXEMPTIONS.—
"(1) IN GENERAL.—The amount of tax imposed by this section (determined without regard to this subsection) shall be increased by 5 percent of the excess (if any) of—
�
