| |
| author | Kathleen Michael Annarelli |
| title | The Development of the Economic Recovery Tax Act of 1981 and Its Implications for Income Distribution in the United States |
| abstract | Income inequality in the United States has risen consistently over the past 40 years. This trend is characterized by
income concentration in the top one percent of earners. Scholars have sought to pinpoint the primary causes of rising inequality often focusing on exogenous
factors such as globalization and technological changes. This thesis, however, focuses on the ways in which domestic policy may have distorted income
distribution, namely through tax policy. Given that the Economic Recovery Tax Act of 1981 was enacted precisely as the initial spike in top incomes
occurred, it is explored as a policy that initiated the broader trend of rising inequality. It also is understood as one of the initial policies enacted
under neoliberal ideological insights, which marks a notable change in policymaking away from interventionist policies. Through the use of qualitative
and quantitative data, this paper traces the development of the Economic Recovery Tax Act of 1981 by reviewing the political and economic events, forces,
and factors that led to its development and the rhetoric that accompanied its enactment. The conclusion offers evidence that this tax policy likely
contributed to income concentration. In addition, this paper provides fruitful ground for further research regarding the relationship between tax
policy and income distribution in the United States and, inherently, has implications for policymakers going forward. |
| school | The College of Liberal Arts, Drew University |
| degree | B.A. (2017) |
| advisor | Philip Mundo |
| committee | Jason Jordan
Maliha Safri |
| full text | KMAnnarelli.pdf |
| |
