Tax Reduction Act of 1980

Summary

Title I: Short Title, Etc. - Tax Reduction Act of 1980 - States that the effective date for the provisions of such Act shall be taxable years beginning after December 31, 1980. Title II: Tax Treatment of Individuals - Amends the Internal Revenue Code to increase the allowable amount of the income tax credit for the elderly. Increases the amount of the income tax exclusion for dividends and interest income. Allows married couples filing joint returns an income tax deduction from gross income equal to ten percent of the earned income of the lower income spouse. Limits the amount of such deduction to $1,000 for a taxable year. Extends the income tax deduction for charitable contributions to taxpayers who do not itemize individual income tax deductions. Title III: Social Security and Other Pension Contribution Tax Credit - Amends the Internal Revenue Code to allow a refundable income tax credit for ten percent of a taxpayer's social security taxes in 1981 or 1982 or for such taxpayer's contribution to a tax-qualified pension plan for such years. Limits the amount of such credit to $200. Increases the allowable amount of the income tax deduction for contributions to a retirement savings plan. Extends eligibility for such tax deduction to individuals who are active participants in tax-qualified pension plans, annuities, bond purchase plans, and government retirement plans. Title IV: Capital Cost Recovery System - Amends the Internal Revenue Code to revise the method for determining useful lives of business assets for purposes of computing allowable depreciation deductions. Replaces the asset depreciation range (ADR) system with a schedule of capital cost recovery periods for four classes of business property. Disallows the deduction for additional first-year depreciation with respect to recovery cost property. Classifies excess amounts of depreciation under the recovery cost method as an item of tax preference for purposes of calculating the minimum tax. Title V: Tax Changes Primarily Affecting Corporations - Amends the Internal Revenue Code to reduce corporate tax rates. Allows an accelerated investment tax credit for research and experimental expenditures in connection with the taxpayer's trade or business. Title VI: Tax Impact Study - Authorizes the Secretary of the Treasury and the Council of Economic Advisors to study the impact of Federal, State, and local taxation on the American economy.

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1 official file

• Introduced in House

  summary · EN · 21 August 1980

  Open at official source

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