The act, which is often referred to as the "Kennedy Tax Cuts," is the first large set of tax revisions designed to reduce the higher taxation rates of people with wealth. Corporate tax rates and the tax rates of the wealthy are reduced. In addition, the limitation on deductions for donations to public charities is raised to 30 percent of a person's adjusted gross income, which effectively acts as another tax break for the wealthy, as now a higher percentage of donations are tax exempt.