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.