Economic Recovery Tax Act of 1981

[AI summary unavailable — showing source text] Economic Recovery Tax Act of 1981 - Title I: Individual Tax Rate Cuts - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1982, 1983, and 1984 and thereafter. Allows a tax credit equal to one and one-fourth percent of an individual's regular tax liability for a taxable year beginning in 1981. Repeals the 50 percent maximum tax rate on personal service income. Reduces the alternative minimum tax for taxpayers other than corporations. Reduces from 70 percent to 50 percent the personal holding company tax rate. Title II: Incentives for Plant, Equipment, and Real Property - 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 four classes of business property. Establishes cost recovery periods for the following classes of business property: (1) three-year property (automobiles, light-duty trucks, and certain tangible property used in connection with research and experimentation or with a midpoint life of four years or less; (2) five-year property (tangible property…