Major provisions of the tax reform act of 1969: a Summary;

              A SUMMARY
Major Provisions
of the Tax Reform Act
of 1969
by Herbert Sirowitz
The Tax Reform Act of 1969—enacted December 30,
1969—contains many of the original proposals for tax
reform, considerably altered in some instances, plus
scores of other changes, which combine to produce
what may be the most extensive overhaul of the Internal
Revenue Code in the nation's history. Some tax reform
items, debated at length in Congress, did not become
part of the final compromise version of the legislation.
For example, tax-exempt bonds generally were not
affected. The 6-month holding period for capital gains
remained unchanged as did the tax treatment of so-called
intangible drilling costs and qualified retirement
plan benefits of professional corporations.
On the other hand, a new concept has been introduced
to the tax law— a minimum tax to be imposed on certain
income from preferential sources. In addition, private
foundations are subjected to a 4 percent excise on in­vestment
income plus other taxes and sanctions. Many
taxpayers will have their tax bills increased as a result
of the repeal of the 7 percent investment credit, the re­duction
in the 271/2 percent oil depletion allowance to
22 percent, the curtailed use of the alternative tax rate
on long-term capital gains, and various other revenue
producing measures.
Individual taxpayers stand to benefit from a series of
tax relief provisions, such as reduced tax rates for the
single person and head of household, an increase in the
standard deduction, and larger personal exemptions.
Furthermore, a special new maximum tax rate will apply
to earned income—salaries, professional fees and the
like.
The following pages briefly set forth some of the major
provisions of the 1969 Act. The law itself contains many
other provisions, including numerous exceptions and
conditions.
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