Welfare Reform and Tax Reduction Act

[AI summary unavailable — showing source text] Welfare Reform and Tax Reduction Act - Title I: Family Allowance Deduction, Standard Allowance, Family Allowance, Family Allowance Credit, and Other Tax Provisions - Amends the Internal Revenue Code to authorize a family allowance deduction in lieu of personal exemptions in computing an individual's taxable income. Stipulates that such family allowance deduction shall be a specific multiple of the authorized personal exemption in taxable years 1977 through 1981. States that after 1981, such exemption shall be two times the amount of the following exemptions: (1) $1,000 for the taxpayer; (2) $1,000 for the taxpayer's spouse; (3) $1,000 for any one dependent; (4) $400 for other dependents if such an individual's gross income for the taxable year is less than $1,000; (5) an additional $600 for a taxpayer, his spouse or dependent if such an individual is 65 years of age or older; (6) an additional $600 for a taxpayer, his spouse or dependent who is blind; and (7) an additional $600 for a taxpayer, his spouse or a dependent who is permanently and totally disabled as defined in this Act. Sets forth special rules for the taxable years 1977 through 1981. Establishes a standard deduction al…