Overview of the 1997 Tax Act
Overview of the 1997 Tax Act
Much smaller than 1981 Reagan cut
Makes for more complicated system
$150 billion in tax cuts
$50 billion in tax increases
Much smaller than 1981 Reagan cut
First tax cut in 16 years
In constant dollars, Reagan cut was 15 times larger
Reagan cut included significant cuts for businesses - 1997 cut doesn't
Reagan cut was across-the-board - 1997 cut is "targeted"
Makes for more complicated system
Same politicians who said they wanted a simpler tax system gave us many more complications
$500 child credit complex for lower income filers
Almost every tax break has accompanying phase-out range
Capital gains calculations much more complex
$150 billion in tax cuts
$50 billion in tax increases
7.5 percent airline ticket tax extended
New $3 per flight segment tax
Tobacco tax increases by 60 percent
Adds 15 cents to a pack of cigarettes over 2000 - 2002
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