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Families' use of the 1982 tax cut income
Author(s) -
McCULLOUGH JANE L.,
LONGSTRETH MOLLY
Publication year - 1985
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1985.tb00460.x
Subject(s) - adjusted gross income , income tax , economics , order (exchange) , sample (material) , gross income , demographic economics , labour economics , state income tax , public economics , tax reform , finance , chemistry , chromatography
The likely allocation of extra income from the 1982 U.S. income lax rate reduction by a group of consumers was investigated. Eighty‐five percent of the sample indicated they were likely to spend the additional income and 75% that they would save or invest it. Saving was related to income and age. Those indicating they were likely to save said they would require a larger sum of money as a result of the tax cut in order to make a decision about its use than did those who were most likely to spend it.