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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

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