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Economic Growth and Tax Relief Reconciliation Act of 2001
(redirected from 2001 Tax Bill)

   Also found in: Wikipedia 0.02 sec.
Economic Growth and Tax Relief Reconciliation Act of 2001
Legislation in the United States that reduced marginal tax rates for most American taxpayers. For example, it reduced the lowest bracket from 15% to 10% and the highest from 39.6% to 35%. It also simplified tax consequences of gifts and retirement plans. Proponents of EGTRRA claim that such policies spur economic growth. Critics point to lost government revenues and claim that the tax cuts primarily benefited the wealthy.


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According to their analysis, the phased-in tax cuts of the 2001 tax bill substantially reduced employment, output, and investment during the phase-in period relative to alternative policies with immediate, but more modest tax cuts.
Prior to the 2001 tax bill, revenue was projected to increase to $50 billion per year by 2010.
 
 
 
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