Impact of the 1975 tax cut on income and employment in the black community

Summary The Tax Reform Act of 1975 should more properly be called the Tax Reduction Act of 1975 because it provides little in the way of reform beyond the fact that a disproportionately large share of the reduction (43.5 percent) goes to persons with incomes below $10,000. The main purpose of the act is to stimulate consumer spending, in the expectation that this rise in spending will impart some buoyancy to the sagging economy.