Economic Recovery Tax Act of 1981

[AI summary unavailable — showing source text] Economic Recovery Tax Act of 1981 - Title I: Individual Income Tax Provisions - Subtitle A: Tax Reductions - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for 1982, 1983, and 1984 and thereafter. Reduces the highest marginal tax rate from 70 to 50 percent, effective in 1982. Allows a tax credit of one and one-fourth percent of an individual's tax liability for the tax year of 1981. Repeals the 50 percent maximum tax rate on personal service income, effective in 1982. Reduces the alternative minimum tax and the personal holding company tax to correspond with the reductions in the the highest marginal tax rates. Revises withholding requirements to provide for withholding reductions in 1981, 1982, and 1983. Specifies such reduction as 10 percent in 1982 and 10 percent in 1983. Authorizes the Secretary of the Treasury to issue regulations permitting wage earners to increase or decrease their withholding allowances. Establishes a maximum tax rate on long-term capital gains of 20 percent for sales and exchanges (by taxpayers other than corporations) occurring after June 10, 1981 and before January 1, 1982. Decrease the holding period requirem…