Revenue Reconciliation Act - nickels and dimes add up

The Revenue Reconciliation Act of 1990 implements significant changes that are both diverse and complex in tax law. The act has increased excise, employment and income taxes. The Act eliminates the 33% tax rate 'bubble' and moves those taxpayers to the 31% rate, but the elimination of reductions for taxpayers making over $100,000 a year means that those taxpayers actually will be taxed at an effective rate of 31.93%. Changes in the tax law affect the areas of: employment taxes, including payroll taxes, Social Security coverage, and the FUTA surtax; excise taxes, including user fees, gas guzzling cars, and luxury items; qualified plans, including PBGC insurance premia, reversion of excess assets, and transfer of excess assets to retiree health accounts; corporations, including transfers of family businesses, corporate spin-offs, and the reporting of stock and asset acquisitions; and procedure, including the accuracy-related penalty and compliance provisions.