Economic Recovery Tax Act


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Economic Recovery Tax Act

United States legislation, passed in 1981 and signed by President Ronald Reagan that cut marginal tax rates significantly. For example, it cut the top tax rate from 70% to 50% over three years and the bottom rate from 14% to 11%. The Act was intended to stimulate economic growth by putting more money in people's pockets; this concept is a key component of what became known as Reaganomics. Government revenue declined by nearly 3% of GDP as a result of the Act. It is also called the Kemp-Roth tax cut after its two principal sponsors in Congress.
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7) The Economic Recovery Tax Act of 1981 enacted the Accelerated Cost Recovery System, which delineated classes of assets and assigned cost recovery percentages each year.
In Chapter 5, "The Economic Recovery Tax Act of 1981," the point is made that the Act can be seen as a benchmark.
An incremental, 25 percent R&D tax credit was enacted as part of the Economic Recovery Tax Act of 1981.
The economy was in recession for most of the decade's first three years before responding to the stimulus provided by the Reagan Administration's Economic Recovery Tax Act of 1981 (ERTA).
In the early 1980s, when space was in unusually short supply, commercial real estate received an additional push from the Economic Recovery Tax Act, which provided an acceleration of depreciation allowances for capital goods.
In 1983, however, the situation reversed as a result of sharply lower inflation rates and the accelerated de preciation provisions of the Economic Recovery Tax Act of 1981.
For example, in recent years benefit plans have been affected by the Economic Recovery Tax Act of 1981, the Tax Equity and Fiscal Responsibility Act of 1982, the Deficit Reduction Act of 1984, and the Retirement Equity Act of 1984.
IRAs gained popularity in 1981 when the Economic Recovery Tax Act expanded the regulations to allow all workers to contribute up to $2,000 annually, whether or not their employer offered a retirement plan.
A general business tax credit for companies that conduct research in the United States to develop or improve their products, manufacturing processes, and software, the R&D credit was originally introduced by the Economic Recovery Tax Act of 1981, P.
The Economic Recovery Tax Act of 1981 (ERTA) offers a blueprint for fiscal stimulus that would be far more effective than the package approved by Pres.
The product was created shortly after the 1981 Economic Recovery Tax Act, which deferred estate-tax liability for married couples to after the second death.
11 The rules in the temporary and proposed regulations are modeled upon the language contained in section 1256(e)(2)(A), which was enacted as part of the Economic Recovery Tax Act of 1981.

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