Taxpayer Relief Act Of 1997

AAA

DEFINITION of 'Taxpayer Relief Act Of 1997'

One of the largest tax-reduction acts in U.S. history, this legislation reduced tax rates and offered new tax credits for taxpayers across the board. This act introduced the Child Tax Credit, raised the unified credit limit and the tax exclusion from the sale of a personal residence. This act also provided tax relief for education savings and retirement accounts.

INVESTOPEDIA EXPLAINS 'Taxpayer Relief Act Of 1997'

The Taxpayer Relief Act of 1997 was signed off on by President Clinton on August 5, 1997. In addition to the aforementioned tax breaks, this act also created a $1.3 million exclusion for farms and small businesses. This act was widely applauded by the American public, and has since provided billions of dollars in tax relief for both personal and business taxpayers.

RELATED TERMS
  1. Tax Reform Act Of 1993

    Legislation aimed at reducing the federal deficit through a combination ...
  2. Social Security

    A United States federal program of social insurance and benefits ...
  3. Tax Equity And Fiscal Responsibility ...

    Federal tax legislation passed in 1982 that modified some aspects ...
  4. Child Tax Credit

    A credit given to taxpayers for each dependent child that is ...
  5. Tax Reform Act Of 1986

    A law passed by the United States Congress to simplify the income ...
  6. Subsidy

    A benefit given by the government to groups or individuals usually ...
RELATED FAQS
  1. What are common reasons for governments to implement tariffs?

    A tariff is a tax imposed by a governing authority on goods or services entering or leaving the country and is typically ... Read Full Answer >>
  2. What are some of the arguments in favor of a value-added tax (VAT)?

    A value-added tax (VAT) offers several advantages over an income tax or traditional sales tax. It raises needed government ... Read Full Answer >>
  3. How does a company derecognize a deferred tax liability?

    Under U.S. generally accepted accounting principles, or GAAP, deferred tax positions must be derecognized during the first ... Read Full Answer >>
  4. How is compound interest taxed?

    Compound interest is money that is earned and added to a principal balance and then earns additional interest. Adding interest ... Read Full Answer >>
  5. According to the law of supply and demand, what is the effect of an increase or decrease ...

    Standard economic analysis shows that taxes of any form, including income taxes, tend to cause deadweight loss in the market. ... Read Full Answer >>
  6. How does the Fair Accounting Standards Board (FASB) regulate deferred tax liabilities?

    The Financial Accounting Standards Board (FASB) requires that deferred tax liabilities be recognized whenever there is a ... Read Full Answer >>
Related Articles
  1. Taxes

    Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
  2. Taxes

    Will Your Home Sale Leave You With Tax Shock?

    Learn how the newest tax laws apply to the proceeds you earn.
  3. Taxes

    Dividend Tax Rates: What Investors Need To Know

    Find out how legislation enacted in 2003 is benefiting both investors and corporations, and when it's scheduled to expire.
  4. Economics

    China And The Maritime Silk Road

    We provide an overview of China's planned Maritime Silk Road.
  5. Forex Education

    What Is A Currency War & How Does It Work

    We look at what a currency war is, what factors may lead to it, the impacts of such a strategy, and whether there is a currency war currently.
  6. Retirement

    Some Tax Considerations For Your Retirement Income

    Even if you don’t plan to retire, it’s still a good idea to think ahead about where to live, your income and how it all interacts with Social Security.
  7. Economics

    The Field So Far: US 2016 Presidential Candidates

    Over the past several months, there has been a lot of speculation as to who will make a run at the Republican and Democratic nominations.
  8. Taxes

    Tips on Charitable Contributions: Limits and Taxes

    An overview of the limits and tax deductions of charitable donations.
  9. Taxes

    What is Withholding Tax?

    Withholding tax is the income tax federal and state governments require employers to withhold from employee paychecks.
  10. Taxes

    When Is Dual Citizenship Not A Good Idea?

    It may sound useful, but there are a number of reasons that make dual citizenship a questionable choice.

You May Also Like

Hot Definitions
  1. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  2. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  3. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  4. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  5. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  6. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
Trading Center