Economic Recovery Tax Act of 1981

Definition

ERTA. A federal law that reduced income tax rates and provided incentives for businesses, including an adjustment to depreciation rates. It was signed by President Ronald Reagan in 1981. The law ultimately increased the federal budget deficit, and prompted some of ERTA to be reversed or reviewed in the Tax Equity and Fiscal Responsibility Act of 1982.

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You should try and make sure that you know how the economic recovery tax act of 1981 works and be prepared for it.

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The Economic Recovery Tax Act of 1981 ensured that small business would be able to thrive and grow with the special treatment by the government.

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My boss originally worked for Congress where he was instrumental in drafting the Economic Recovery Tax Act of 1981, and he later blamed himself for the resulting deficit increase.

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