Question

An example of fiscal policy is the Tax Relief Act of 1997. please write a paragraph

Answer 1

Government use fiscal policy for sustainable growth and development.
TAX RELIEF ACT 1997:
first tax law enacted by congress using the fast track budget reconciliation process.In 1997 president was clinton who passed the tax relief act.the tax relief act of 1997 was the one of the largest tax reduction act of US. the tax relief act has reduced tax rates and introduced some new tax rates that remains same till now.the relief act focus on middle income class and low income class.there are various major cut targeted at particular categories of taxpayers. tax introduced in these tax relief act is

a)Child tax credit $400 tax credit for each child underage 17 was introduced in 1999 it was $500.

b) Education credit.

c).Roth IRA's were established permanently exempting these retirement account from capital gain trade.

d) Lowered rates for capital gain tax reduced from 28%to 20%.e) increased the estate tax exemption.

f) exempted taxation on the profits from selling a personal residence.
Tax relief for parents, students, small business, investors etc.the tax pay relief act changed the whole tax structure of the US.