Revenue Act of 1978

The United States Revenue Act of 1978, Pub. L.Tooltip Public Law (United States) 95–600, 92 Stat. 2763, enacted November 6, 1978, amended the Internal Revenue Code by reducing individual income taxes (widening tax brackets and reducing the number of tax rates), increasing the personal exemption from $750 to $1,000, reducing corporate tax rates (the top rate falling from 48 percent to 46 percent), increasing the standard deduction from $3,200 to $3,400 (joint returns), increasing the capital gains exclusion from 50 percent to 60 percent (effectively reducing the rate of taxation on realized capital gains to 28%), and repealing the non-business exemption for state and local gasoline taxes.

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Transcription

Legislative history

The Act was passed by the 95th Congress and was signed into law by President Jimmy Carter on November 6, 1978.

Provisions

Flexible spending accounts and the 401(k) section of the IRS code

The Act also established Flexible spending accounts, which allow employees to receive reimbursement for medical expenses from untaxed income dollars. The Act added section 401(k) to the Internal Revenue Code.^[1] This latter provision, intended to limit executive compensation, was later used to develop one of the primary tax-advantaged retirement savings vehicles in use in the United States.

Notes

^ See section 135(a) of the Revenue Act of 1978, Pub. L. No. 95-600, 92 Stat. 2763, 2785 (Nov. 6, 1978), redesignating former subsection (k) as subsection (l) and adding new subsection (k), effective for plan years beginning after December 31, 1979.

External links

Full text of the Act^{[dead link]}

Jimmy Carter

39th President of the United States (1977–1981)
76th Governor of Georgia (1971–1975)
Georgia State Senator (1963–1967)

Presidency
(timeline)

Foreign policy	Carter Doctrine Camp David Accords Egypt–Israel peace treaty Torrijos–Carter Treaties Iran hostage crisis International Emergency Economic Powers Act Executive Order 12170 Operation Eagle Claw Canadian Caper Engagement with Ruhollah Khomeini 1979 oil crisis Support for Iraq during the Iran-Iraq War Algiers Accords Iran–United States Claims Tribunal Diplomatic relations with China Goldwater v. Carter Strategic Arms Limitation Talks International trips 1980 Summer Olympics boycott Executive Order 12036 Refugee Act Foreign Intelligence Surveillance Act FISA Court Nuclear Non-Proliferation Act of 1978
Domestic policy	Cannabis policy Civil Service Reform Act of 1978 Senior Executive Service Department of Education Organization Act U.S. Department of Education Executive Order 12148 Federal Emergency Management Agency Executive Order 12172 U.S. Department of Health and Human Services
Economic policy	Agricultural Trade Act of 1978 Agricultural Adjustment Act of 1980 Airline Deregulation Act Carter bonds Community Reinvestment Act DIDMC Act Electronic Fund Transfer Act Executive Order 12086 Fair Debt Collection Practices Act Federal Reserve Reform Act of 1977 Financial Institutions Regulatory and Interest Rate Control Act of 1978 Federal Financial Institutions Examination Council National security letter Right to Financial Privacy Act Food and Agriculture Act of 1977 Humphrey–Hawkins Full Employment Act Motor Carrier Act of 1980 National Aquaculture Act of 1980 Staggers Rail Act Tax Reduction and Simplification Act of 1977 Revenue Act of 1978 Trade Agreements Act of 1979 Crude Oil Windfall Profit Tax Act of 1980
Energy policy	U.S. Department of Energy Energy Security Act Synthetic Fuels Corporation National Energy Act Energy Tax Act National Energy Conservation Policy Act Public Utility Regulatory Policies Act Nuclear Safety, Research, Demonstration, and Development Act of 1980 Solar Photovoltaic Energy Research, Development, and Demonstration Act of 1978
Environmental policy	Alaska National Interest Lands Conservation Act Antarctic Conservation Act Clean Air Act Amendments of 1977 Clean Water Act of 1977 Endangered Species Act Amendments of 1978 Superfund Agency for Toxic Substances and Disease Registry National Priorities List Surface Mining Control and Reclamation Act of 1977 Office of Surface Mining Reclamation and Enforcement Three Mile Island accident investigation Uranium Mill Tailings Radiation Control Act