Economic Growth and Tax Relief Reconciliation Act of 2001

(redirected from 2001 Tax Bill)

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.
References in periodicals archive ?
Another provision being looked on favorably would make permanent increases in IRA and 401(k) contribution limits and catch-up provisions for those over 50 contained in a 2001 tax bill, the source said.
As a result, even those rare victories, such as the middle-class tax relief Democrats gained in the 2001 tax bill, were dwarfed by the system's growing regressivity.
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.
The 2001 tax bill alone contained 89 separate provisions and added 108 complexities to the code, including numerous phase-ins, phaseouts, changes in rates, scale-ups, scale-downs, phaseouts of phase-ins, accelerations of existing phaseouts, and sunsets.
Prior to the 2001 tax bill, revenue was projected to increase to $50 billion per year by 2010.