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 1981. Reduces the lowest marginal rate from 14 to 12 percent and the highest rate from 70 to 67 percent in each category. Increases the amount of 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. Increases the amount of the personal income tax exemption from $1,000 to $1,100. Increases the rate of the earned income tax credit from ten to 11 percent of earned income of $5,000 and below. Increases the allowable amount of such credit. Increases the dollar limitation on such credit. 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. Increases the percentage of the net capital gain deduction from gross income from 60 to 70 percent for individual taxpayers. Reduces the rate of the …