Economic Recovery Tax Act of 1981

The Economic Recovery Tax Act of 1981 aims to stimulate economic growth by reducing tax rates for individual taxpayers, accelerating capital cost recovery, and providing incentives for savings. The act introduces new rate reduction credits, increases exemptions, and makes adjustments to individual income tax brackets to prevent inflation-caused tax increases. It also accelerates depreciation, increases the investment tax credit, and allows a partial exclusion of foreign-earned income and housing costs. Additionally, it repeals the deduction for retirement savings for certain married individuals and introduces new rules for straddle transactions, royalty oil production, and windfall profit tax. Overall, the act aims to promote economic recovery by providing tax incentives for businesses and individuals.