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.
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| Long title | An 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. |
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| Enacted by | the 94th United States Congress |
| Effective | January 1, 1974 |
| Citations | |
| Public law | Pub. L. 94–12 |
| Legislative history | |
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It started the Earned Income tax credit (EITC), which, at the time, provided an income tax credit to certain individuals.[1] The EITC gave a tax credit to individuals who had at least one dependent, maintained a household, and had earned income of less than $8,000 during the year.[1] The tax credit was $400 for individuals with earned income of less than $4,000. The tax credit was an amount less than $400 for individuals whose income was between $4,000 and $7,999 during the year.[1]
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.[2]
References edit
- ^ a b c Dilworth, Kevin (November 3, 1975). "12,000 may get break in taxes". Democrat and Chronicle (Rochester, New York). p. 1B, 6B.
- ^ Thompson, Derek (September 19, 2012). "The Truth About Makers and Takers: We Are All the Takers". The Atlantic. Retrieved September 21, 2023.