Economic Recovery Tax Act

(redirected from Kemp-Roth Tax Cut)
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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.
References in periodicals archive ?
Ronald Reagan endorsed the 1978 Kemp-Roth tax cut proposal and two years later made it the centerpiece of his economic agenda.
In the latter job, Bartlett helped draft the famous Kemp-Roth tax cut bill, which did not pass but did become the basis for President Ronald Reagan's tax cut bill of 1981.
As a Congressman from Wyoming, he was not part of the supply side bloc but voted for the Kemp-Roth tax cut.
I got involved in Republican politics in 1979 because I was extremely excited by the Kemp-Roth tax cut [cut marginal tax rates by 25 percent across the board].
Kemp championed supply-side economics and co-authored the 1981 Kemp-Roth tax cut bill.
William Roth of Delaware -- co-author of the Reagan-era Kemp-Roth tax cut intended to slash government -- proposed several years ago that uninsured Americans, the self-employed, and members of small groups be allowed to buy into the program.
Congressional author of the Kemp-Roth tax cut, he will discuss the impact of state and national election results on individual freedom, entrepreneurial capitalism, market fluctuation and long-term growth.
Ronald Reagan won the election in 1980 after adopting the Kemp-Roth tax cuts and pounding them at campaign stops.