Tax Rate Reduction and Indexing Act of 1981

Tax Rate Reduction and Indexing Act of 1981 - Title I: Individual Tax Rates - Amends the Internal Revenue Code to reduce individual income tax rates for 1982, 1983, and 1984.

Title II: Inflation Adjustment - Requires annual cost of living adjustments, based on the Consumer Price Index, to individual income tax rates, the personal tax exemption, withholding requirements, and minimum income tax return amounts.