Tax Reform Act of 1976
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The Tax Reform Act of 1976 was passed by the United States Congress in September of 1976, and signed into law by President Gerald Ford on October 4, 1976, becoming Pub.L. 94-455.
The act increased the percentage standard deduction to 16% ($2,800 max) and minimum standard deduction to $2,100 (joint returns). The general tax credit (max of $35/capita or 2% of $9,000 income) was temporarily extended and small business tax rates were temporarily lowered through 1977.
The act delayed the decrease in the investment tax credit through 1980, expanded the individual minimum tax, and increased the long term capital gains holding period from 6 months to 1 year.
A unified rate schedule for the estate and gift taxes with a $175,000 exemption was created.
[edit] Inflation-adjusted numbers
Corrected for inflation by CPI:
| 1976 dollars | 2005 dollars |
|---|---|
| $35 | $120 |
| $2,100 | $7,208 |
| $2,800 | $9,611 |
| $9,000 | $30,891 |
| $175,000 | $600,659 |
|
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