Tax Reduction Act of 1975

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

Tax Reduction Act of 1975
Great Seal of the United States
Long titleAn act to amend the Internal Revenue Code of 1954 to provide for a refund of 1974 individual income taxes, to increase the low income allowance and the percentage standard deduction, to provide a credit for personal exemptions and a credit for certain earned income, to increase the investment credit and the surtax exemption, to reduce percentage depletion for oil and gas, and for other purposes.
Enacted bythe 94th United States Congress
EffectiveJanuary 1, 1974
Public lawPub.L. 94–12
Legislative history
  • Introduced in the House as H.R. 2166 by Al Ullman (DOR) on January 28, 1975
  • Committee consideration by United States House Committee on Ways and Means
  • Passed the House of Representatives on February 27, 1975 (317–97)
  • Passed the Senate on March 21, 1975 (60–29) with amendment
  • House agreed to Senate amendment on March 26, 1975 (287–125) with further amendment
  • Senate agreed to House amendment on March 26, 1975 (45–16)
  • Signed into law by President Gerald Ford on March 29, 1975

The United States Tax Reduction Act of 1975 provided a 10-percent rebate on 1974 tax liability ($200 cap). It created a temporary $30 general tax credit for each taxpayer and dependent.

The investment tax credit was temporarily increased to 10 percent through 1976.

The minimum standard deduction was temporarily increased to $1,900 (joint returns) for one year.

For one year, the percentage standard deduction was increased to 16 percent of adjusted gross income, up to $2,600 if married filing jointly, $2,300 if single, or $1,300 if married filing separately.

The bill became public law 94–12 when it was signed by President Gerald Ford on March 29, 1975.

External links[edit]