Tax Reduction Act of 1981

[AI summary unavailable — showing source text] Tax Reduction Act of 1981 - Title I: Amends the Internal Revenue Code to allow employers, employees, and self-employed individuals an income tax credit equal to ten percent of the amount of social security taxes paid by such individuals in 1981 or 1982. Increases the income tax personal exemption from $1,000 to $1,500. Increases the dollar limitations on the exclusion of dividends and interest income received by individuals. Amends the Crude Oil Windfall Profit Tax Act of 1980 to repeal the termination date for such exclusion. Allows married individuals filing a joint return an income tax deduction from gross income of ten percent of the lesser of $30,000 or the earned income of the lower income spouse. Specifies that the rate of such deduction will be five percent, instead of ten, in taxable year 1981. Title II: Business Tax Reduction - Revises the method for determining useful lives of business assets for purposes of computing allowable depreciation deductions. Replaces the asset depreciation range (ADR) method with a schedule of capital cost recovery periods for three classes of business property. Establishes capital cost recovery periods for the following classes of business pr…