Title

Impact of Economic Recovery Tax Act of 1981 on Investment

Date of Award

1983

Document Type

Thesis

Degree Name

Master of Science in Accounting

Department

Accounting

First Advisor

Robert Rainish

LCSH

Economic Recovery Tax Act of 1981, Investments, American--Economic policy

Call No. at the Univ. of New Haven Library

AS 36 .N29 Acc. 1983 no.9

Abstract

The Economic Recovery Tax Act of 1981 was enacted to help speedy recovery of the U.S. economy which had not reached its potential. The purpose of this thesis is to examine the impact of the 1981 Tax Act on the investment.

The findings are three. One is that the 1981 Tax Act results non-neutral tax treatment among assets. Equipment and machinery receive more favorable tax treatment than structures. The other is that the 1981 Tax Act results negative effective tax rate on equipment under moderate inflation rate. The third is that among structures, non-residential structures receive more favorable tax treatment than residential structures.

The implication of the 1981 Tax Act will be the change of the trend of the investment. In the long-run, the U.S. economy will depend more on light industry and the investment trend will be concentrated on light duty assets.

Share

COinS