Tax Reduction Act of 1964
The United States Revenue Act of 1964, signed
February 26th, 1964 by President Lyndon Johnson, reduced individual income tax
rates (the top rate fell from 91 percent to 70 percent) and, reduced the top
corporate rate from 52 percent to 48 percent. A minimum standard deduction of
$300 plus $100 per exemption was created (maximum $1,000).
The
Kennedy-Johnson Tax Cut
The most prominent landmarks on this
historical journey are two pieces of legislation. The Revenue Act of 1964 is
popularly known as the Kennedy-Johnson tax cut, although neither of these two
presidents did any of the heavy lifting required to bring to life this
best-known event of postwar stabilization policy. Its sequel, The Revenue and
Expenditure Control Act of 1968, on the other hand, is an orphan and is simply
known as "The Surcharge" despite the realization that President Johnson
sacrificed the last of his political capital to get this bill through Congress.
Financing
Issues and Economic Effects of Past American Wars
The first tax act of
the Vietnam era was a tax reduction, the Revenue Act of 1964, which was
implemented to counter a perceived economic slowdown. This Act embodied many of
the proposals made by President Kennedy in 1961 to “get America moving
again.” Its major provisions included a reduction in individual income and
corporate tax rates, and an expansion of the standard deduction.
OTA
Paper 81 - Revenue Effects of Major Tax Bills
Measured in
constant dollars, however, the Revenue Act of 1964 was the biggest tax cut,
with the Revenue Act of 1945 second.
Federal
Fiscal Policy Since the Employment Act oif 1946
Revenue Act of
1964 (enacted 2-26-64): indMdual and corporate tax rates reduced, with reduced
withholding effective 3-1-64.
Comparing the Kennedy, Reagan and Bush Tax Cuts
How big
were the Bush tax cuts? According to the Treasury Department, there have been
19 significant federal tax cuts since the end of World War II. Three of them
have been passed under the Administration of George W. Bush—the Economic
Growth and Tax Reform Reconciliation Act of 2001 (EGTRRA), the Job Creation and
Workers Assistance Act of 2002 (JCWA), and The Jobs and Growth Tax Relief and
Reconciliation Act of 2003 (JGTRRA).
