Tax Reform Act of 1986
The U. S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters. Referred to as the second of the two "Reagan tax cuts", the bill was officially sponsored by Democrats, Richard Gephardt of Missouri in the House of Representatives and Bill Bradley of New Jersey in the Senate; the Tax Reform Act of 1986 was given impetus by a detailed tax-simplification proposal from President Reagan's Treasury Department, was designed to be tax-revenue neutral because Reagan stated that he would veto any bill, not. Revenue neutrality was achieved by offsetting tax cuts for individuals by eliminating $60 billion annually in tax loopholes and shifting $24 billion of the tax burden from individuals to corporations by eliminating the investment tax credit, slowing depreciation of assets, enacting a stiff alternative minimum tax on corporations; the top tax rate for individuals for tax year 1987 was lowered from 50% to 38.5%. Many lower level tax brackets were consolidated, the upper income level of the bottom rate was increased from $5,720/year to $29,750/year.
This package consolidated tax brackets from fifteen levels of income to four levels of income. The standard deduction, personal exemption, earned income credit were expanded, resulting in the removal of six million poor Americans from the income tax roll and a reduction of income tax liability across all income levels; the higher standard deduction simplified the preparation of tax returns for many individuals. For tax year 1987, the Act provided a graduated rate structure of 11%/15%/28%/35%/38.5%. Beginning with tax year 1988, the Act provided a nominal rate structure of 15%/28%/33%. However, beginning with 1988, taxpayers having taxable income higher than a certain level were taxed at an effective rate of about 28%; this was jettisoned in the Omnibus Budget Reconciliation Act of 1990, otherwise known as the "Bush tax increase", which violated his Taxpayer Protection Pledge. The Act increased incentives favoring investment in owner-occupied housing relative to rental housing. Prior to the Act, all personal interest was deductible.
Subsequently, only home mortgage interest was deductible, including interest on home equity loans. The Act phased out many investment incentives for rental housing, through extending the depreciation period of rental property to 27.5 years from 15-19 years. It discouraged real estate investing by eliminating the deduction for passive losses. To the extent that low-income people may be more to live in rental housing than in owner-occupied housing, this provision of the Act could have had the tendency to decrease the new supply of housing accessible to low-income people; the Low-Income Housing Tax Credit was added to the Act to provide some balance and encourage investment in multifamily housing for the poor. Moreover, interest on consumer loans such as credit card debt was no longer deductible. An existing provision in the tax code, called Income Averaging, which reduced taxes for those only making a much higher salary than before, was eliminated; the Act, increased the personal exemption and standard deduction.
The Individual Retirement Account deduction was restricted. The IRA had been created as part of the Employee Retirement Income Security Act of 1974, where employees not covered by a pension plan could contribute the lesser of $1500 or 15% of earned income; the Economic Recovery Tax Act of 1981 removed the pension plan clause and raised the contribution limit to the lesser of $2000 or 100% of earned income. The 1986 Tax Reform Act retained the $2000 contribution limit, but restricted the deductibility for households that have pension plan coverage and have moderate to high incomes. Non-deductible contributions were allowed. Depreciation deductions were curtailed. Prior to ERTA, depreciation was based on "useful life" calculations provided by the Treasury Department. ERTA set up the "accelerated cost recovery system"; this set up a series of useful lives based on three years for technical equipment, five years for non-technical office equipment, ten years for industrial equipment, fifteen years for real property.
TRA86 lengthened these lives, lengthened them further for taxpayers covered by the alternative minimum tax. These latter, longer lives approximate "economic depreciation," a concept economists have used to determine the actual life of an asset relative to its economic value. Defined contribution pension contributions were curtailed; the law prior to TRA86 was that DC pension limits were the lesser of 25% of compensation or $30,000. This could be accomplished by any combination of elective deferrals and profit sharing contributions. TRA86 introduced an elective deferral limit of $7000, indexed to inflation. Since the profit sharing percentage must be uniform for all employees, this had the intended result of making more equitable contributions to 401's and other types of DC pension plans; the 1986 Tax Reform Act introduced the General Nondiscrimination rules which applied to qualified pension plans and 403 plans that for private sector employers. It did not allow such pension plans to discriminate in favor of compensated employees.
A compensated employee for the purposes of testing a plan's compliance for the 2006 plan year is any employee whose compensation exceeded $95,000 in the 2005 plan year. Therefore, all new hires are by definition nonhighly compensated employees. A plan could not give benefits or contributions on a more favorable basis for
Economic Recovery Tax Act of 1981
The Economic Recovery Tax Act of 1981 known as the ERTA or "Kemp–Roth Tax Cut", was a federal law enacted by the 97th United States Congress and signed into law by President Ronald Reagan. The act was a major tax cut designed to encourage economic growth. Republican Congressman Jack Kemp and Republican Senator William Roth had nearly won passage of a tax cut during the presidency of Jimmy Carter, Reagan made a major tax cut his top priority upon taking office. Though Democrats maintained a majority in the House of Representatives during the 97th Congress, Reagan was able to convince conservative Democrats like Phil Gramm to support the bill. ERTA passed Congress on August 4, 1981, was signed into law on August 13, 1981. ERTA was one of the largest tax cuts in U. S. history, ERTA and the Tax Reform Act of 1986 are known together as the Reagan tax cuts. Along with spending cuts, Reagan's tax cuts were the centerpiece of what some contemporaries described as the conservative "Reagan Revolution."
Included in the act was an across-the-board decrease in federal income tax rates. The top marginal tax rate fell from 70 percent to 50 percent, the bottom rate dropped from 14 percent to 11 percent. To prevent future bracket creep, the new tax rates were indexed for inflation. ERTA slashed estate taxes, capital gains taxes, corporate taxes. Critics of the act claim that it worsened federal budget deficits, while supporters credit it for bolstering the economy during the 1980s. Due to deficit concerns in the midst of the early 1980s recession, many of the cuts implemented by ERTA were rescinded by the Tax Equity and Fiscal Responsibility Act of 1982; the Office of Tax Analysis of the United States Department of the Treasury summarized the tax changes as follows: phased-in 23% cut in individual tax rates over 3 years. The maximum expense in calculating credit was increased from $2000 to $2400 for one child and from $4000 to $4800 for two or more kids; the credit increased from a maximum of $400 or $800 to 30 % of $10,000 income or less.
The 30% credit is diminished by 1% for every $2,000 of earned income up to $28000. At $28000, the credit for earned income is 20%; the amount a married taxpayer who files a join return increased under the Economic Recovery Tax Act to $125,000 from $100,000, allowed under the 1976 Act. A single person is limited to an exclusion of $62,500, it increases the amount of a one time exclusion of gain realized on the sale of principal residence by a persons at least 55 years old. Republican Congressman Jack Kemp and Republican Senator William Roth had nearly won passage of a major tax cut during the presidency of Jimmy Carter, but President Carter had prevented passage of the bill due to concerns about the deficit. Supply-side economics advocates like Kemp and Reagan asserted that cutting taxes would lead to higher government revenue due to economic growth, a proposition, challenged by many economists. Upon taking office, Reagan made the passage of Kemp-Roth bill his top domestic priority; as Democrats controlled the House of Representatives, passage of any bill would require the support of some House Democrats in addition to the support of congressional Republicans.
Reagan's victory in the 1980 presidential campaign had united Republicans around his leadership, while conservative Democrats like Phil Gramm of Texas were eager to back some of Reagan's conservative policies. Throughout 1981, Reagan met with members of Congress, focusing on winning support from conservative Southern Democrats. In July 1981, the Senate voted 89-11 in favor of the tax cut bill favored by Reagan, the House subsequently approved the bill in a 238-195 vote. Reagan's success in passing a major tax bill and cutting the federal budget was hailed as the "Reagan Revolution" by some reporters; the Accelerated Cost Recovery System was a major component of the ERTA and was amended in 1986 to become the Modified Accelerated cost Recovery System. The system changed the way. Instead of basing the depreciation deduction on an estimate of the expected useful life of assets, the assets were placed into categories: 3, 5, 10, or 15 years of life. For example, the agriculture industry saw a re-evaluation of their farming assets.
Items such as automobiles and swine were given 3 year depreciation values, things like buildings and land had a 15-year depreciation value. The idea was that there would be a rise in tax cuts due to the optimistic consideration of depreciating values; this would in turn put more cash into the pockets of business owners to promote investment and economic growth. The most lasting impact and significant change of the Act was the indexing of the tax code parameters for inflation starting in years after 1984. Of the nine federal tax laws between 1968 and this Act, si
The United States of America known as the United States or America, is a country composed of 50 states, a federal district, five major self-governing territories, various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is smaller than the entire continent of Europe's 3.9 million square miles. With a population of over 327 million people, the U. S. is the third most populous country. The capital is Washington, D. C. and the largest city by population is New York City. Forty-eight states and the capital's federal district are contiguous in North America between Canada and Mexico; the State of Alaska is in the northwest corner of North America, bordered by Canada to the east and across the Bering Strait from Russia to the west. The State of Hawaii is an archipelago in the mid-Pacific Ocean; the U. S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across nine official time zones. The diverse geography and wildlife of the United States make it one of the world's 17 megadiverse countries.
Paleo-Indians migrated from Siberia to the North American mainland at least 12,000 years ago. European colonization began in the 16th century; the United States emerged from the thirteen British colonies established along the East Coast. Numerous disputes between Great Britain and the colonies following the French and Indian War led to the American Revolution, which began in 1775, the subsequent Declaration of Independence in 1776; the war ended in 1783 with the United States becoming the first country to gain independence from a European power. The current constitution was adopted in 1788, with the first ten amendments, collectively named the Bill of Rights, being ratified in 1791 to guarantee many fundamental civil liberties; the United States embarked on a vigorous expansion across North America throughout the 19th century, acquiring new territories, displacing Native American tribes, admitting new states until it spanned the continent by 1848. During the second half of the 19th century, the Civil War led to the abolition of slavery.
By the end of the century, the United States had extended into the Pacific Ocean, its economy, driven in large part by the Industrial Revolution, began to soar. The Spanish–American War and World War I confirmed the country's status as a global military power; the United States emerged from World War II as a global superpower, the first country to develop nuclear weapons, the only country to use them in warfare, a permanent member of the United Nations Security Council. Sweeping civil rights legislation, notably the Civil Rights Act of 1964, the Voting Rights Act of 1965 and the Fair Housing Act of 1968, outlawed discrimination based on race or color. During the Cold War, the United States and the Soviet Union competed in the Space Race, culminating with the 1969 U. S. Moon landing; the end of the Cold War and the collapse of the Soviet Union in 1991 left the United States as the world's sole superpower. The United States is the world's oldest surviving federation, it is a representative democracy.
The United States is a founding member of the United Nations, World Bank, International Monetary Fund, Organization of American States, other international organizations. The United States is a developed country, with the world's largest economy by nominal GDP and second-largest economy by PPP, accounting for a quarter of global GDP; the U. S. economy is post-industrial, characterized by the dominance of services and knowledge-based activities, although the manufacturing sector remains the second-largest in the world. The United States is the world's largest importer and the second largest exporter of goods, by value. Although its population is only 4.3% of the world total, the U. S. holds 31% of the total wealth in the world, the largest share of global wealth concentrated in a single country. Despite wide income and wealth disparities, the United States continues to rank high in measures of socioeconomic performance, including average wage, human development, per capita GDP, worker productivity.
The United States is the foremost military power in the world, making up a third of global military spending, is a leading political and scientific force internationally. In 1507, the German cartographer Martin Waldseemüller produced a world map on which he named the lands of the Western Hemisphere America in honor of the Italian explorer and cartographer Amerigo Vespucci; the first documentary evidence of the phrase "United States of America" is from a letter dated January 2, 1776, written by Stephen Moylan, Esq. to George Washington's aide-de-camp and Muster-Master General of the Continental Army, Lt. Col. Joseph Reed. Moylan expressed his wish to go "with full and ample powers from the United States of America to Spain" to seek assistance in the revolutionary war effort; the first known publication of the phrase "United States of America" was in an anonymous essay in The Virginia Gazette newspaper in Williamsburg, Virginia, on April 6, 1776. The second draft of the Articles of Confederation, prepared by John Dickinson and completed by June 17, 1776, at the latest, declared "The name of this Confederation shall be the'United States of America'".
The final version of the Articles sent to the states for ratification in late 1777 contains the sentence "The Stile of this Confederacy shall be'The United States of America'". In June 1776, Thomas Jefferson wrote the phrase "UNITED STATES OF AMERICA" in all capitalized letters in the headline of his "original Rough draught" of the Declaration of Independence; this draft of the document did not surface unti
American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, nicknamed the Recovery Act, was a stimulus package enacted by the 111th U. S. Congress and signed into law by President Barack Obama in February 2009. Developed in response to the Great Recession, the ARRA's primary objective was to save existing jobs and create new ones as soon as possible. Other objectives were to provide temporary relief programs for those most affected by the recession and invest in infrastructure, education and renewable energy; the approximate cost of the economic stimulus package was estimated to be $787 billion at the time of passage revised to $831 billion between 2009 and 2019. The ARRA's rationale was based on the Keynesian economic theory that, during recessions, the government should offset the decrease in private spending with an increase in public spending in order to save jobs and stop further economic deterioration. Since its inception, the impact of the stimulus has been a subject of disagreement. Studies on its effects have produced a range of conclusions, from positive to negative and all reactions in between.
In 2012, the IGM Forum poll conducted by the University of Chicago Booth School of Business found 80% of leading economists agree unemployment was lower at the end of 2010 than it would have been without the stimulus. 46% "agreed" or "strongly agreed" that the benefits outweighed the costs, 27% were uncertain, 12% disagreed or disagreed. IGM Forum asked the same question to leading economists in 2014; this new poll found 82% of leading economists agreed or agreed that unemployment was lower in 2010 than it would have been without the stimulus. Revisiting the question about the benefits outweighing the costs, 56% agreed or agreed that it did, 23% were uncertain, 5% disagreed. Both the House and the Senate versions of the bills were written by Democratic Congressional committee leaders and their staffs; because work on the bills started before President Obama took office on January 20, 2009, top aides to President-Elect Obama held multiple meetings with committee leaders and staffers. On January 10, 2009, President-Elect Obama's administration released a report that provided a preliminary analysis of the impact to jobs of some of the prototypical recovery packages that were being considered.
The House version of the bill, H. R. 1, was introduced on January 26, 2009. It was sponsored by Democrat David Obey, the House Appropriations Committee chairman, was co-sponsored by nine other Democrats. On January 23, Speaker of the House Nancy Pelosi said that the bill was on track to be presented to President Obama for him to sign into law before February 16, 2009. Although 206 amendments were scheduled for floor votes, they were combined into only 11, which enabled quicker passage of the bill. On January 28, 2009, the House passed the bill by a 244–188 vote. All but 11 Democrats voted for the bill, 177 Republicans voted against it; the senate version of the bill, S. 1, was introduced on January 6, 2009, substituted as an amendment to the House bill, S. Amdt. 570. It was sponsored by Harry Reid, the Majority Leader, co-sponsored by 16 other Democrats and Joe Lieberman, an independent who caucused with the Democrats; the Senate began consideration of the bill starting with the $275 billion tax provisions in the week of February 2, 2009.
A significant difference between the House version and the Senate version was the inclusion of a one-year extension of revisions to the alternative minimum tax, which added $70 billion to the bill's total. Republicans proposed several amendments to the bill directed at increasing the share of tax cuts and downsizing spending as well as decreasing the overall price. President Obama and Senate Democrats hinted that they would be willing to compromise on Republican suggestions to increase infrastructure spending and to double the housing tax credit proposed from $7,500 to $15,000 and expand its application to all home buyers, not just first-time buyers. Other considered amendments included the Freedom Act of 2009, an amendment proposed by Senate Finance Committee members Maria Cantwell and Orrin Hatch to include tax incentives for plug-in electric vehicles; the Senate called a special Saturday debate session for February 7 at the urging of President Obama. The Senate voted, 61–36 on February 9 to end debate on the bill and advance it to the Senate floor to vote on the bill itself.
On February 10, the Senate voted 61–37 All the Democrats voted in favor, but only three Republicans voted in favor. Specter switched to the Democratic Party in the year. At one point, the Senate bill stood at $838 billion. Senate Republicans forced a near unprecedented level of changes in the House bill, which had more followed the Obama plan. A comparison of the $827 billion economic recovery plan drafted by Senate Democrats with an $820 billion version passed by the House and the final $787 billion conference version shows huge shifts within these similar totals. Additional debt costs would add about $350 billion or more over 10 years. Many provisions were set to expire in two years; the main funding differences between the Senate bill and the House bill were: More funds for health care in the Senate, renewable energy programs, for home buyers tax credit, new payments to the elderly and a one-year increase in AMT limits. The House had more funds appropriated for education and for aid to low income workers and the unemployed.
Aid to low income worke
Revenue Act of 1913
The Revenue Act of 1913 known as the Underwood Tariff or the Underwood-Simmons Act, re-established a federal income tax in the United States and lowered tariff rates. The act was sponsored by Representative Oscar Underwood, passed by the 63rd United States Congress, signed into law by President Woodrow Wilson. Wilson and other members of the Democratic Party had long seen high tariffs as equivalent to unfair taxes on consumers, tariff reduction was President Wilson's first priority upon taking office. Following the ratification of the Sixteenth Amendment in 1913, Democratic leaders agreed to seek passage of a major bill that would lower tariffs and implement an income tax. Underwood shepherded the revenue bill through the House of Representatives, but the bill won approval in the United States Senate only after extensive lobbying by the Wilson administration. Wilson signed the bill into law on October 3, 1913; the Revenue Act of 1913 lowered average tariff rates from 40 percent to 26 percent.
It established a one percent tax on income above $3,000 per year. A separate provision established a corporate tax of one percent, superseding a previous tax that had only applied to corporations with net incomes greater than $5,000 per year. Though a Republican-controlled Congress would raise tariff rates, the Revenue Act of 1913 marked an important shift in federal revenue policy, as government revenue would rely on income taxes rather than tariff duties. Democrats had long seen high tariff rates as equivalent to unfair taxes on consumers, tariff reduction was President Wilson's first priority upon taking office, he argued that the system of high tariffs "cuts us off from our proper part in the commerce of the world, violates the just principles of taxation, makes the government a facile instrument in the hands of private interests." While most Democrats were united behind a decrease in tariff rates, most Republicans held that high tariff rates were useful for protecting domestic manufacturing and factory workers against foreign competition.
Shortly before Wilson took office, the Sixteenth Amendment, proposed by Congress in 1909 during a debate over tariff legislation, was ratified by the requisite number of states. Following the ratification of the Sixteenth Amendment, Democratic leaders agreed to attach an income tax provision to their tariff reduction bill to make up for lost revenue, to shift the burden of funding the government towards the high earners that would be subject to the income tax. By late May 1913, House Majority Leader Oscar Underwood had passed a bill in the House that cut the average tariff rate by 10 percent. Underwood's bill, which represented the largest downward revision of the tariff since the Civil War, aggressively cut rates for raw materials, goods deemed to be "necessities," and products produced domestically by trusts, but it retained higher tariff rates for luxury goods; the bill instituted a tax on personal income above $4,000. Passage of Underwood's tariff bill in the Senate would prove more difficult than in the House because some Southern and Western Democrats favored the continued protection of the wool and sugar industries, because Democrats had a narrower majority in that chamber.
Seeking to marshal support for the tariff bill, Wilson met extensively with Democratic senators and appealed directly to the people through the press. After weeks of hearings and debate and Secretary of State William Jennings Bryan managed to unite Senate Democrats behind the bill; the Senate voted 44 to 37 in favor of the bill, with only one Democrat voting against it and only one Republican, progressive leader Robert M. La Follette Sr. voting for it. Wilson signed the Revenue Act of 1913 into law on October 3, 1913; the Revenue Act of 1913 reduced the average import tariff rates from 40 percent to 26 percent. The Act established the lowest rates since the Walker Tariff of 1857. Most schedules were a percentage of the value of the item; the duty on woolens went from 56% to 18.5%. Steel rails, raw wool, iron ore, agricultural implements now had zero rates; the reciprocity program wanted by the Republicans was eliminated. Congress rejected proposals for a tariff board to fix rates scientifically, but it set up a study commission.
The Underwood-Simmons measure vastly increased the free list, adding woolens, steel, farm machinery, many raw materials and foodstuffs. The average rate was 26%; the Revenue Act of 1913 restored a federal income tax for the first time since 1872. The federal government had adopted an income tax in the Wilson–Gorman Tariff Act, but that tax had been struck down by the Supreme Court in the case of Pollock v. Farmers' Loan & Trust Co; the Revenue Act of 1913 imposed a one percent tax on incomes above $3,000, with a top tax rate of six percent on those earning more than $500,000 per year. Three percent of the population was subject to the income tax; the bill included a one percent tax on the net income of all corporations, superseding a previous federal tax that had only applied to corporate net incomes above $5,000. The Supreme Court upheld the constitutionality of the income tax in the cases of Brushaber v. Union Pacific Railroad Co. and Stanton v. Baltic Mining Co. A normal income tax and an additional tax were levied against the net income of individuals, as shown in the following table: There was an exemption of $3,000 for single filers and $4,000 for married couples.
Therefore, the 1% bottom marginal rate applied only to the first $17,000 of income for single filers or the first $16,000 ($352,300 in
Republican Party (United States)
The Republican Party referred to as the GOP, is one of the two major political parties in the United States. The GOP was founded in 1854 by opponents of the Kansas-Nebraska Act, which had expanded slavery into U. S. territories. The party subscribed to classical liberalism and took ideological stands that were anti-slavery and pro-economic reform. Abraham Lincoln was the first Republican president in the history of the United States; the Party was dominant over the Democrats during the Third Party System and Fourth Party System. In 1912, Theodore Roosevelt formed the Progressive Party after being rejected by the GOP and ran unsuccessfully as a third-party presidential candidate calling for social reforms. After the 1912 election, many Roosevelt supporters left the Party, the Party underwent an ideological shift to the right; the liberal Republican element in the GOP was overwhelmed by a conservative surge begun by Barry Goldwater in 1964 that continued during the Reagan Era in the 1980s. After the Civil Rights Act of 1964 and the Voting Rights Act of 1965, the party's core base shifted, with the Southern states becoming more reliably Republican in presidential politics and the Northeastern states becoming more reliably Democratic.
White voters identified with the Republican Party after the 1960s. Following the Supreme Court's 1973 decision in Roe v. Wade, the Republican Party made opposition to abortion a key plank of its national party platform and grew its support among evangelicals. By 2000, the Republican Party was aligned with Christian conservatism; the Party's core support since the 1990s comes chiefly from the South, the Great Plains, the Mountain States and rural areas in the North. The 21st century Republican Party ideology is American conservatism, which contrasts with the Democrats' liberal platform and progressive wing; the GOP supports lower taxes, free market capitalism, a strong national defense, gun rights and restrictions on labor unions. The GOP was committed to protectionism and tariffs from its founding until the 1930s when it was based in the industrial Northeast and Midwest, but has grown more supportive of free trade since 1952. In addition to advocating for conservative economic policies, the Republican Party is conservative.
Founded in the Northern states in 1854 by abolitionists, modernizers, ex-Whigs and ex-Free Soilers, the Republican Party became the principal opposition to the dominant Democratic Party and the popular Know Nothing Party. The party grew out of opposition to the Kansas–Nebraska Act, which repealed the Missouri Compromise and opened Kansas Territory and Nebraska Territory to slavery and future admission as slave states; the Northern Republicans saw the expansion of slavery as a great evil. The first public meeting of the general anti-Nebraska movement, at which the name Republican was suggested for a new anti-slavery party, was held on March 20, 1854 in a schoolhouse in Ripon, Wisconsin; the name was chosen to pay homage to Thomas Jefferson's Republican Party. The first official party convention was held on July 1854 in Jackson, Michigan. At the 1856 Republican National Convention, the party adopted a national platform emphasizing opposition to the expansion of slavery into U. S. territories. While Republican candidate John C.
Frémont lost the 1856 United States presidential election to James Buchanan, he did win 11 of the 16 northern states. The Republican Party first came to power in the elections of 1860 when it won control of both houses of Congress and its candidate, former congressman Abraham Lincoln, was elected President. In the election of 1864, it united with War Democrats to nominate Lincoln on the National Union Party ticket. Under Republican congressional leadership, the Thirteenth Amendment to the United States Constitution—which banned slavery in the United States—passed the Senate in 1864 and the House in 1865; the party's success created factionalism within the party in the 1870s. Those who felt that Reconstruction had been accomplished, was continued to promote the large-scale corruption tolerated by President Ulysses S. Grant, ran Horace Greeley for the presidency; the Stalwart faction defended Grant and the spoils system, whereas the Half-Breeds pushed for reform of the civil service. The Pendleton Civil Service Reform Act was passed in 1883.
The Republican Party supported hard money, high tariffs to promote economic growth, high wages and high profits, generous pensions for Union veterans, the annexation of Hawaii. The Republicans had strong support from pietistic Protestants, but they resisted demands for Prohibition; as the Northern postwar economy boomed with heavy and light industry, mines, fast-growing cities, prosperous agriculture, the Republicans took credit and promoted policies to sustain the fast growth. The GOP was dominant over the Democrats during the Third Party System. However, by 1890 the Republicans had agreed to the Sherman Antitrust Act and the Interstate Commerce Commission in response to complaints from owners of small businesses and farmers; the high McKinley Tariff of 1890 hurt the party and the Democrats swept to a landslide in the off-year elections defeating McKinley himself. The Democrats elected Grover Cleveland in 1884 and 1892; the election of William McKinley in 1896 was marked by a resurgence of Republican dominance that lasted until 1932.
McKinley promised that high tariffs would end the severe hardship caused by the Pa
Public Law 110-343
Public Law 110-343 is a US Act of Congress signed into law by U. S. President George W. Bush, designed to mitigate the growing financial crisis of the late-2000s by giving relief to so-called "Troubled Assets."Its formal title is "An Act To provide authority for the Federal Government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, for other purposes." The Act created a $700 billion Troubled Asset Relief Program under the Emergency Economic Stabilization Act of 2008, enacted the Energy Improvement and Extension Act of 2008, Tax Extenders and Alternative Minimum Tax Relief Act of 2008, which included the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, the Heartland Disaster Tax Relief Act of 2008.
The first version of the Emergency Economic Stabilization Act of 2008 was rejected by the House of Representatives on September 29. After its defeat, Senate leaders decided to amend an existing bill from the House in order to circumvent the revenue origination clause of U. S. Constitution, chose H. R. 1424 as the vehicle for the legislation. H. R. 1424 was sponsored by United States House Representative Patrick J. Kennedy. On September 30, 2008, Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell announced the proposed draft had been formalized for the amendment that would transform H. R. 1424 into the Senate version of the Emergency Economic Stabilization Act of 2008. On October 1, 2008, the amendment to H. R. 1424 was approved by a vote of 74 to 25, the entire amended bill was passed by 74 to 25. The bill was returned to the House for consideration. On October 3, 2008, the bill as passed by the Senate was accepted by a vote of 263 to 171 in the House; every member of the House voted, though the House had a vacant seat of the deceased Stephanie Tubbs Jones of Ohio.
President George W. Bush signed the bill into law a few hours later; the Emergency Economic Stabilization Act of 2008 is part of an effort to bail out firms holding mortgage-backed securities in an attempt to restore liquidity to the credit markets. The Energy Improvement and Extension Act of 2008 contains a new tax credit for plug-in hybrid electric vehicles for less than a year after the first 250,000 are sold; the credit is a base $2,500 plus $417 for each kWh of battery pack capacity in excess of 4 kWh to a maximum of $15,000 for any vehicle with a gross vehicle weight rating of more than 26,000 pounds and up to $7,500 for 12 kWh or more in passenger cars. It extends existing tax credits for renewable energy initiatives, including cellulosic ethanol and biodiesel development, wind, solar and hydro-electric power, it establishes electricity as a clean-burning fuel for tax purposes. Separately, this section requires the reporting of cost basis by brokers to the IRS for certain securities acquired after 2011 – see covered security.
The Tax Extenders and Alternative Minimum Tax Relief Act includes $100 billion in tax breaks for businesses and the middle class, plus a provision to raise the cap on federal deposit insurance from $100,000 to $250,000. The Act keeps the alternative minimum tax from hitting 20 million middle-income Americans, it provides $8 billion in tax relief for those hit by natural disasters in the Midwest and Louisiana. As a whole, the Senate tax package would cost $150.5 billion over 10 years. $43.5 billion would be offset by several revenue-raising provisions. Hedge fund managers would be forbidden from using offshore corporations to defer paying taxes; the bill freezes a tax deduction that oil and gas companies get for certain domestic production activities. The deduction, now 6 percent, is scheduled to rise to 9 percent in 2010; the provisions of the tax bill included: A temporary increase in Federal Deposit Insurance Corporation deposit insurance limit from $100,000 to $250,000 until December 2009 Tax breaks for businesses Tax credits for the use of alternative energy and plug-in hybrids Tax credits for research and development Expansion of the child tax credit Protection from the Alternative Minimum Tax Tax reductions for victims of severe weather Extension of unemployment insurance A USD $1,000 tax credit for low income homeowners Tax breaks and credit extensions for the following: "Certain wooden arrows designed for use by children" Wool research Film and television productions Litigants in the 1989 Exxon-Valdez oil spill Virgin Island and Puerto Rican rum American Samoa Mine rescue teams Mine safety equipment Domestic production activities in Puerto Rico Indian tribes Railroads Auto racing tracks District of Columbia The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 mandates that if U.
S. health insurance companies provide coverage for mental health and substance abuse, the coverage must be equal for conditions such as psychological disorders and drug addiction. This act continues and expands upon the previous Mental Health Parity Act of 1996, it states that financial requirements such as deductibles and copayments and lifetime or dollar limits t