Economic Recovery Tax Act of 1981

The Economic Recovery Tax Act of 1981 was a significant piece of legislation in the United States aimed at stimulating the economy. It primarily reduced federal income tax rates for individuals and businesses, which was intended to encourage spending and investment. The Act also included incentives for capital investment and accelerated depreciation schedules for businesses. By lowering taxes, the government aimed to boost economic growth during a period of recession. Overall, the Act marked a shift towards supply-side economics, promoting the idea that cutting taxes would lead to increased economic activity and job creation.