Tax Reduction Act

Summary

Tax Reduction Act - Title I: Refund of 1974 Individual Income Taxes - Provides for a refund of 10 percent (but not less than $100 nor more than $200) of a taxpayer's 1974 tax liability. States that such refund shall be reduced in proportion to the excess of a taxpayer's adjusted gross income over $20,000. Title II: Reduction In Individual Income Taxes - Increases the low-income allowance to: (1) $2,500 in the case of a joint return or a surviving spouse; (2) $1,900 for single individuals; and (3) $1,250 in the case of a married individual filing separately. Increases the percentage standard deduction from 15 to 16 percent, but not to exceed: (1) $3,000 for a joint return or surviving spouse; (2) $2,500 for single individuals; and (3) $1,500 for married individuals filing separately. Provides an earned income credit of 5 percent (but not to exceed $200) of the taxpayer's adjusted earned income for the taxable year. Defines the term "adjusted earned income". Title III: Certain Changes In Business Taxes - Increases the investment credit from 7 to 10 percent of the qualified investment effective for property constructed or acquired after January 22, 1975. Provides that the increase in investment credit benefits for public utilities may not exceed $100,000,000. Allows the investment credit to be utilized with respect to property the construction of which will take more than 2 years. Increases the corporate surtax exemption from $25,000 to $50,000.

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1 official file

• Introduced in House

  summary · EN · 17 February 1975

  Open at official source

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