A bill entitled the "Savings Expansion Act of 1981".

Amends the Internal Revenue Code to reduce from 70 percent to 50 percent the maximum rate of income tax for individuals.

Requires separate computation of personal service income and nonpersonal service (unearned) income, applying each category to the lowest tax rates initially. Prohibits separate computations in the case of any taxpayer with more than $10,000 in tax preference items.