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Tax-Cut Measure Goes Far Beyond Rebates
The new tax act signed by President Ford in March sparks debate over wide effects beyond rebates. It promises a 5 percent home purchase tax credit up to 2000, extended home gain deferral, child care deductions up to 4800 for families under 35000, higher standard deductions, a 20 percent corporate rate cut on first 25010 and 22 percent on next 25000, plus a 10 percent investment credit for property placed in service 1975 to 1977. The package aims to revive the economy, shift the slump shape, and spur home buying and business investment amid stimulus and easing credit.
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