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HE tax structure in 1984 is an excellent watershed from which to assess the effects of the 1981 personal income tax changes on the federal tax burden. This is the first year in which the phased reduction of marginal tax rates became fully effective; it is the last year in which the personal tax structure was not indexed. Under the 1981 tax act, the brackets used to compute personal income tax liability will be indexed to inflation beginning in 1985.

The 1981 Personal Income Tax Cuts: A Retrospective Look at Their Effects on the Federal Tax Burden