Kemp-Roth Tax Cut Act Law and Legal Definition
The Kemp-Roth Tax Cut Act of 1981 is a U.S federal statute. The Act amended the Internal Revenue Code of 1954. This Act aims to encourage the economic growth through:
1. reduction of individual tax rates;
2. expensing depreciable property; and
3. incentives for savings and other small businesses.
Main features of the Act are:
1. reduction of tax rates by 25% over three years;
2. accelerated depreciation deductions;
3. indexed individual income tax parameters;
4. exclusion of income of two earner married couple by 10 %;
5. reduction in windfall profit taxes; and
6. expanded provisions for employees stock ownership plans.
