Tax Reduction Act of 1981

[AI summary unavailable — showing source text] Tax Reduction Act of 1981 - Title I: Individual Income Taxes - Amends the Internal Revenue Code to reduce income tax rates for individuals and for estates and trusts beginning in 1982. Reduces the lowest marginal rate from 14 to 12 percent beginning in 1982. Reduces the highest rate from 70 to 60 percent beginning in 1981 and from 60 to 50 percent beginning in 1982. Increases the zero bracket amount for each category of individual taxpayer. Increases the income levels at which a taxpayer is required to file an income tax return. Reduces the personal holding company tax from 70 percent to 60 percent in 1981 and from 60 percent to 50 percent in 1982. Increases the amount of the personal tax exemption from $1,000 to $1,100. Increases the rate of the earned income tax credit from 10 to 11 percent of earned income of $5,000 and below. Increases the allowable amount of such credit. Allows married individuals filing a joint return an income tax deduction from gross income of 10 percent of the lesser of $40,000 or the earned income of the lower income spouse. Title II: Corporate Income Taxes - Subtitle A - Cost Recovery Provisions - Amends the Internal Revenue Code to provide an accelerate…