Tax Cuts: Economic Recovery Act (aug 13, 1981 – sep 1, 1982)

Description:

Cause:

1. response to promote economic recovery and growth
2. includes measures to modernize our nation's infrastructure
3. enhance energy independence
4. expand educational opportunities
5. preserve and improve affordable health care
6. provide tax relief
7. protect those in greatest need

Effect:

1. largest tax cut in U.S. history
2. slashed the highest income tax bracket from 70% to 50%
3. large share of the tax relief went to upper income taxpayers

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