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The United States Tax Reform Act of 1969 established individual and corporate minimum taxes, established a new tax schedule for single taxpayers, and lowered the maximum rate on earned income from 70 percent to 50 percent.
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Details
The act phased in an increase in the personal exemption amount from $600 to $750, repealed the investment tax credit, and delayed the scheduled reduction in the telephone and automobile excise taxes.
The minimum standard deduction was increased from $300 plus $100/exemption (maximum of $1,000) to $1,000.
The income tax surcharge was temporarily extended at a 5 percent annual rate through June 30, 1970.
The Act provided a government definition of "private foundation" for the first time (albeit indirectly).[1]
Controversy
The Alternative Minimum Tax was not indexed for inflation. This means that as inflation has risen since 1969, more and more taxpayers earn enough to get ensnared by this "tax on the wealthy". [2]
History
The Tax Reform Act came into existence by the 91st Congress and was signed into law by President Richard Nixon.
Inflation-adjusted numbers
Corrected for inflation by CPI:
| 1969 dollars | 2007 dollars |
|---|---|
| $100 | $564.85 |
| $300 | $1,694.55 |
| $600 | $3,389.10 |
| $750 | $4,236.38 |
| $1,000 | $5,648.50 |
References
- ^ See IRC section 509
- ^ http://hnn.us/articles/11819.html
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