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
Copyright
©1989 by the Board of Student Publications, University of Northern Iowa
Language
en
File Format
application/pdf
Recommended Citation
McNeilus, Cori
(1989)
"The Effect of the Economic Recovery Tax Act of 1981 on Saving and Investment,"
Draftings In: Vol. 4:
No.
2, Article 5.
Available at:
https://scholarworks.uni.edu/draftings/vol4/iss2/5
Comments
This issue is also considered v.5 of the initial publication series of Major Themes in Economics.