L. 91–172) was a United States federal tax law signed by President Richard Nixon on December 30, 1969.
The Act slightly increased standard deductions and personal exemptions and created more stringent requirements on nonprofit organizations, which many argue drove them to professionalization.
[3] The Act provided a government definition of "private foundation" for the first time (albeit indirectly).
[5] The explanation of the Act prepared by Congress's Staff of the Joint Committee on Internal Revenue Taxation says: 20.
On the other hand, individuals or corporations which received the bulk of their income from such sources as capital gains or were in a position to benefit from net lease arrangements, from accelerated depreciation on real estate, from percentage depletion, or from other tax-preferred activities tended to pay relatively low rates of tax.
In extreme cases, individuals enjoyed large economic incomes without paying any tax at all.