Economic Growth and Tax Relief Reconciliation Act of 2001

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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 ?
Among the alterations to the gift tax in the EGTRRA was a reduction in rates.
The enhanced rules for student loan deductions introduced by EGTRRA (Sec.
Thus, EGTRRA increased exemptions and decreased tax rates--all good changes to be sure--but at a serious cost: the introduction of uncertainty as to the long-term structure of the transfer tax.
EGTRRA changes became effective for plan years starting in 2002.
Other states determine their tax using the SDTC in effect before EGTRRA and, thus, are not affected by the phase-out of the Federal SDTC.
Finally, the last paragraph that references the five-year lookback was also eliminated by the EGTRRA modifications.
President Bush has demanded that Congress pass legislation to make EGTRRA permanent.
The authors' bottom line is that EGTRRA mitigates, but doesn't fully eliminate, the lifetime tax increases facing many low-income households from making significant contributions to tax-deferred retirement accounts.
All of the companies are aware of EGTRRA and have communicated the new tax law's retirement savings opportunities to their employees.
2002 Tax Act Plus covers three critical pieces of legislation that affect your clients this year: Job Creation and Work Assistance Act of 2002, Victims of Terrorism Tax Relief Act, and the provisions of the 2001 EGTRRA Tax Act that are effective for 2002.
one of our top priorities is helping our association clients adapt to this new landscape by providing complete information about how EGTRRA affects their plan and their employees' retirement options.
Recently, congress changed some of the rules governing qualified plans with EGTRRA.