A Caltech Library Service

The 1982 Minimum Tax Amendment as a First Step in the Transition to a "Flat-Rate" Tax

Graetz, Michael J. (1983) The 1982 Minimum Tax Amendment as a First Step in the Transition to a "Flat-Rate" Tax. Social Science Working Paper, 464. California Institute of Technology , Pasadena, CA.

[img] PDF (sswp 464 - Feb. 1983) - Submitted Version
See Usage Policy.


Use this Persistent URL to link to this item:


The massive body of tax legislation enacted in the first two years of the Reagan Administration offers little guidance for predicting the future direction of United States tax policy. Dramatically different Congressional coalitions—each led by the President—passed by very narrow margins the nation's largest tax reduction (the Economic Recovery Tax Act of 1981) and then the next year enacted the largest peacetime tax increase (the Tax Equity and Fiscal Responsibility Act of 1982). In each case, short-term political and fiscal concerns dominated the debates. The 1981 legislation reduced taxes in an effort to stimulate economic activity and investment by according substantial tax relief to businesses and high income individuals; the 1982 legislation requires significant additional taxes from these same sources to reduce triple-digit deficits, a reduction also deemed necessary for economic recovery. Although the two Acts together provide for an overall reduction in business taxes and a phased-in decrease in marginal tax rates applicable to individuals, they impart the overwhelming impression that uncertainty, confusion, and inconsistency currently dominate the tax legislative process.

Item Type:Report or Paper (Working Paper)
Additional Information:I would like to thank Jerry Mashaw and Alan Schwartz for their helpful comments on an earlier draft. Published as Graetz, Michael J. "The 1982 Minimum Tax Amendments as a First Step in the Transition to a Flat Rate Tax." Southern California Law Review 56 (1982): 527.
Group:Social Science Working Papers
Series Name:Social Science Working Paper
Issue or Number:464
Record Number:CaltechAUTHORS:20170922-165505060
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:81785
Deposited By: Jacquelyn Bussone
Deposited On:25 Sep 2017 17:50
Last Modified:03 Oct 2019 18:47

Repository Staff Only: item control page