Tax Relief Act of 1979

Tax Relief Act of 1979 - Title I: Incentives for Investments in Labor Surplus Areas - Amends the Internal Revenue Code to allow manufacturers placing property eligible for the investment tax credit in designated "labor surplus" areas to take double investment tax credits and depreciation deductions. Doubles the allowable income tax deduction for real property taxes on realty used in connection with "labor surplus" area property.

Title II: Inflation Adjustments to Personal Exemptions and Individual Tax Rates - Requires an annual cost of living adjustment, based on the Consumer Price Index, to: (1) the $1,000 personal tax exemption; (2) individual income tax brackets; (3) income tax withholding amounts; and (4) minimum income levels for which tax returns must be filed.

Title III: Financing from General Revenues for Disability and Hospital Insurance Programs - Reduces the taxes on employment which are imposed to finance the Social Security System. Provides that financing for the Medicare Program and disability benefits under Title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act shall come from general revenues, and not from taxes on employment income under the Internal Revenue Code.