American Tax Reduction Act

[AI summary unavailable — showing source text] American Tax Reduction Act - States as the purposes of this Act: (1) the reduction of the public debt; (2) the imposition of limits on Federal spending; (3) the inducement of Members of Congress to eliminate unneeded Federal programs; (4) the reduction of individual income taxes; (5) tax relief for homeowners; and (6) the indexation of tax rates to reflect inflation of income. Title I: Individual Income Tax Rate Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1979, 1980, and 1981 and to make a permanent reduction in such rates for years after 1981. Title II: Provisions Relating to Capital Gains - Reduces the alternative tax on capital gains to 15 percent of the net capital gain. Eliminates capital gains as an item of tax preference for purposes of the minimum and maximum tax. Allows a taxpayer to elect to offset against taxable income all capital losses not in excess of taxable income. Permits a one year carryover of losses in excess of taxable income. Permits a one-time exclusion from gross income of $100,000 of the gain from the sale or exchange of a principal residence. Title III: Provisions Relating to Indexing for In…