Economic Recovery Act of 1981
The Economic Recovery Act of 1981 (ERTA) was a tax cutting initiative.
ERTA had several provisions. These provisions are itemized below:
- Across the board tax cut
- Indexed tax rates to the rate of inflation
- Cut top rate on the long-term capital gains tax to 20% from 28% and cut the rate on dividends, interest, and royalties to 50% from 70%.
- Lowered Marriage penalty tax
- Allowed all working people to open IRA's
- Created the All-Savers Certificate
- Allowance for reinvesting public utility dividends
- Reductions in estate taxes and gift taxes
- Lowered tax rate on the exercise of stock options
- Change rules on accelerated depreciation and investment credit