Economic Recovery Tax Act of 1981 (ERTA)

The Economic Recovery Tax Act of 1981 (ERTA) was a major piece of legislation passed by the United States Congress and signed into law by President Ronald Reagan on August 13, 1981. The act was designed to stimulate the economy by lowering taxes and increasing incentives for businesses to invest.

ERTA was the first major tax cut in the United States since 1964. It reduced the top marginal tax rate from 70% to 50%, and it lowered the capital gains tax rate from 28% to 20%. The act also created a number of new tax incentives for businesses, including accelerated depreciation and investment tax credits.

ERTA had a significant impact on the U.S. economy. The tax cuts helped to boost economic growth and create jobs. The act also helped to reduce the federal budget deficit.

However, ERTA also had some negative consequences. The tax cuts increased the federal deficit, and they contributed to the growing income inequality in the United States.

Overall, ERTA was a significant piece of legislation that had a major impact on the U.S. economy. The act helped to stimulate the economy and create jobs, but it also increased the federal deficit and contributed to income inequality.

Here are some additional details about ERTA:

* The act was sponsored by Rep. Jack Kemp (R-NY) and Sen. William Roth (R-DE).
* It was passed by the House of Representatives by a vote of 292-136, and it was passed by the Senate by a vote of 89-11.
* The act was signed into law by President Reagan on August 13, 1981.
* ERTA reduced the top marginal tax rate from 70% to 50%.
* It also lowered the capital gains tax rate from 28% to 20%.
* The act created a number of new tax incentives for businesses, including accelerated depreciation and investment tax credits.
* ERTA had a significant impact on the U.S. economy. The tax cuts helped to boost economic growth and create jobs. The act also helped to reduce the federal budget deficit.
* However, ERTA also had some negative consequences. The tax cuts increased the federal deficit, and they contributed to the growing income inequality in the United States.