States that Congress: (1) is determined to continue the tax reduction for the first six months of 1976; (2) is also determined to continue to control spending levels; and (3) reaffirms its commitments to the procedures established by the Congressional Budget and Impoundment Control Act under which it has already established a binding spending ceiling for the fiscal year 1976.
Provides that if the Congress adopts a continuation of the tax reduction provided by this Act beyond June 30, 1976, and if economic conditions warrant doing so, Congress shall provide, through the procedures in the Budget Act, for reductions in the level of spending in fiscal year 1977 below what would otherwise occur, equal to any additional reduction in taxes (from the 1974 tax rate levels) provided for the fiscal year 1977, provided that nothing shall preclude the right of the Congress to pass a budget resolution containing a higher or lower expenditure figure if the Congress concludes that this is warranted by economic conditions or unforeseen circumstances.
Revenue Adjustment Act - Provides, under the Tax Reduction Act of 1975 that from January 1, 1976 through June 30, 1976, the minimum standard deduction (low-income allowance) shall be $1,500 for single persons and $1,700 for joint returns. Authorizes for such period that the percentage standard deduction shall be 16 percent to a maximum of $2,200 for single persons and $2,400 for joint returns. Approves for such period an earned income credit equal to five percent of the first $4,000 of earnings for the taxable year.
Provides that any refund of Federal income taxes made to any individual under such provisions relating to earned income credit shall not be taken into account as income or receipts for purposes of determining the eligibility of individuals under Federal assistance programs.
Allows an income tax credit for such period of one percent of income not exceeding $4,500, or $17.50.
Sets the corporate normal tax for such period at 21 percent of taxable income not exceeding $25,000, and 22 percent of taxable income exceeding $25,000.
Sets the corporate surtax rate for the 1976 taxable year, at 13 percent of taxable income exceeding the $25,000 surtax exemption and 26 percent of taxable income exceeding $50,000. Sets the surtax exemption at $25,000 from January 1, 1976 through June 30, 1976.
Applies the withholding tax tables for the period January 1, 1976, through June 30, 1976, which were in effect on December 10, 1975.
Grants an income exclusion for earnings derived from payments by a common carrier for the use on a temporary basis of railroad rolling stock owned by a corporation of a foreign country which grants an equivalent exemption to corporations organized in the United States.
Provides that the interest on governmental obligations issued to finance dams to be utilized for irrigation purposes, the water from which is available by reasonable demand to the general public, shall be exempt from income taxation under the Internal Revenue Code.