Tax Reduction Act

Tax Reduction Act - Title I: Refund of 1974 Individual Income Taxes - Provides for a credit of 14 percent of an individual taxpayer's tax liability for taxable year 1974 up to $300 ($150 in the case of a married individual filing separately), such credit to be reduced by 3 percent of the taxpayer's adjusted gross income in excess of $20,000 ($10,000 in the case of a married individual filing separately).

Title II: Reductions in Individual Income Taxes - Increases the low-income allowance to: (1) $2,500 in the case of a joint return or a surviving spouse; (2) $1,900 for single individuals; and (3) $1,250 in the case of a married individual filing separately.

Increases the percentage standard deduction from 15 to 16 percent, but not to exceed: (1) $3,000 for a joint return on surviving spouse; (2) $2,500 for single individuals; and (3) $1,500 for married individuals filing separately.

Provides an earned income credit of 5 percent (but not to exceed $200) of the taxpayer's adjusted earned income for the taxable year.

Defines the Term "adjusted earned income".

Title III: Repeal Of Percentage Depletion In Case Of Oil And Gas Wells; Increase In Investment Credit; Increase In Corporate Surtax Exemption - Repeals the 22 percent depletion allowance for oil and gas wells.

Increases the investment credit from 7 to 10 percent of the qualified investment.

Increases the corporate surtax exemption from $25,000 to $35,000.