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Investments glossary

Economic Recovery Tax Act of 1981 (ERTA)

The Economic Recovery Tax Act of 1981 (ERTA) was the largest tax cut in U.S. history. Signed by President Ronald Reagan about six months after he took office, ERTA slashed the top income tax rate and allowed for faster expensing of depreciable assets. It included incentives for small business and retirement savings, and established inflation indexing of tax brackets.

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