•  
  •  
 

Document Type

Article

Abstract

In 1981, Congress passed the controversial Economic Recovery Tax Act (ERTA). ERTA reduced personal income tax rates and provided a new accelerated depreciation system for business. Supporters of the legislation predicted that the increased after-tax returns produced by these tax reductions would encourage saving and investment. This article examines the political history and economic theory behind the tax cuts and the impact these changes may have had on saving and investment.

Publication Date

1989

Journal Title

Draftings In

Volume

4

Issue

2

First Page

14

Last Page

19

Comments

This issue is also considered v.5 of the initial publication series of Major Themes in Economics.

Copyright

©1989 by the Board of Student Publications, University of Northern Iowa

Language

en

File Format

application/pdf

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.