American Tax Reduction Act

Summary

American Tax Reduction Act - States as the purposes of this Act: (1) the reduction of the public debt; (2) the imposition of limits on Federal spending; (3) the inducement of Members of Congress to eliminate unneeded Federal programs; (4) the reduction of individual income taxes; (5) tax relief for homeowners; and (6) the indexation of tax rates to reflect inflation of income. Title I: Individual Income Tax Rate Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1979, 1980, and 1981 and to make a permanent reduction in such rates for years after 1981. Title II: Provisions Relating to Capital Gains - Reduces the alternative tax on capital gains to 15 percent of the net capital gain. Eliminates capital gains as an item of tax preference for purposes of the minimum and maximum tax. Allows a taxpayer to elect to offset against taxable income all capital losses not in excess of taxable income. Permits a one year carryover of losses in excess of taxable income. Permits a one-time exclusion from gross income of $100,000 of the gain from the sale or exchange of a principal residence. Title III: Provisions Relating to Indexing for Inflation - Requires inflation adjustments to income brackets for purposes of the individual income tax, the normal tax on corporate income, and the surtax exemption. Requires a similar adjustment to capital assets for purposes of determining gain or loss and for estates and gifts in determining the tax at the time of transfer. Title IV: Reduction in Federal Spending - Limits Federal spending to 18 percent of the gross national product by 1983. Prohibits the consideration of any bill in Congress which would cause the spending limit to be exceeded. Title V: Reduction of the Public Debt - Requires the application of two percent of the annual Federal budget to the retirement of the Federal deficit.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in House

  summary · EN · 14 October 1978

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.