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Tax Legislation
 

Major Enacted Tax Legislation, 1970-1979

 

Revenue Act of 1978

  • Individual Income Tax. Reduced individual taxes (widened tax brackets and reduced number of tax rates).
  • Personal Exemption. Increased personal exemption amount from $750 to $1,000.
  • Corporate Tax. Reduced corporate tax rates (top rate dropped from 48% to 46%).
  • Standard Deduction. Increased standard deduction from $3,200 to $3,400 for joint filers.
  • Capital Gains. Increased capital gains exclusion from 50% to 60%.
  • State and Local Taxes. Repealed nonbusiness deduction for state and local gasoline taxes.


Tax Reduction and Simplification Act of 1977

  • Standard Deduction. Replaced percentage standard deduction and minimum standard deduction with single standard deduction of $3,200 (for joint filers).
  • General Tax Credit. Temporarily extended general tax credit through 1978 (maximum of $35 per capita or 2% of $9,000 of income).


Tax Reform Act of 1976

  • Standard Deduction. Increased percentage standard deduction to 16% (maximum $2,800) and minimum standard deduction to $2,100 (for joints filers).
  • General Tax Credit. Temporarily extended general tax credit through 1977 (maximum of $35 per capita or 2% of $9,000 of income).
  • Investment Tax Credit. Delayed decrease in investment tax credit from 10% to 7% through 1980.
  • Individual Mimimum Tax. Expanded individual minimum tax.
  • Estate and Gift Tax. Created unified rate schedule for estate and gift taxes with $175,000 exemption.
  • Small Business Tax Rates. Temporarily lowered small business tax rates through 1977.
  • Capital Gains. Increased long-term capital gains holding period from 6 months to 1 year.


Tax Reduction Act of 1975

  • Tax Liability. Provided 10% rebate on 1974 tax liability ($200 cap).
  • General Tax Credit. Created temporary $30 general tax credit for each taxpayer and dependent.
  • Investment Tax Credit. Temporarily increased investment tax credit to 10% through 1976.
  • Minimum Standard Deduction. Temporarily increased minimum standard deduction to $1,900 (for joint filers) for 1975 only.
  • Percentage Standard Deduction. Temporarily increased percentage standard deduction to 16% for 1975 only.


Revenue Act of 1971

  • Investment Tax Credit. Reinstated investment tax credit (no basis adjustment).
  • Excise Tax. Repealed 7% auto excise tax, which was due to phase-out in 1982.
  • Depreciation Convention. Replaced 3/4-year depreciation convention with 2-year convention.
  • Minimum Standard Deduction. Increased minimum standard deduction from $1,000 to $1,300.
  • Personal Exemption. Accelerated scheduled increases in personal exemption amount and percentage standard deduction.