The Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub.L. 107-16, 115 Stat. 38, June 7, 2001), was a sweeping piece of tax legislation in the United States by President George W. Bush. It is commonly known by its abbreviation EGTRRA, often pronounced "egg-tra" or "egg-terra", and sometimes also known simply as the 2001 act (especially where the context of a discussion is clearly about taxes), but is more commonly referred to as one of the two "Bush tax cuts".
The Act made significant changes in several areas of the US Internal Revenue Code, including income tax rates, estate and gift tax exclusions, and qualified and retirement plan rules. In general, the act lowered tax rates and simplified retirement and qualified plan rules such as for Individual retirement accounts, 401(k) plans, 403(b), and pension plans. The changes were so large and numerous that many books and analysis papers were published regarding the changes and how to best take advantage of them. All the 2001 tax cuts were set to expire at the end of 2010 when Congress extended them.
Many of the tax reductions in EGTRRA were designed to be phased in over a period of up to 9 years. Many of these slow phase-ins were accelerated by the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), which removed the waiting periods for many of EGTRRA's changes.
A report published by researchers with the Heritage Foundation predicted the cuts would result in the complete elimination of the U.S. national debt by fiscal year 2010. In the eyes of one economist the cuts resulted in a massive explosion in the U.S. national debt and recorded deficits every year since its inception.
Read more about Economic Growth And Tax Relief Reconciliation Act Of 2001: Sunset Provision, Tax Rebate
Famous quotes containing the words economic, growth, tax, relief and/or act:
“There’s something about Marxism that brings out warts—the only kind of growth this economic system encourages.”
—P.J. (Patrick Jake)
“Of all the wastes of human ignorance perhaps the most extravagant and costly to human growth has been the waste of the distinctive powers of womanhood after the child-bearing age.”
—Anna Garlin Spencer (1851–1931)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)
“The highway presents an interesting study of American roadside advertising. There are signs that turn like windmills; startling signs that resemble crashed airplanes; signs with glass lettering which blaze forth at night when automobile headlight beams strike them; flashing neon signs; signs painted with professional touch; signs crudely lettered and misspelled.... They extol the virtues of ice creams, shoe creams, cold creams;...”
—For the State of Florida, U.S. public relief program (1935-1943)
“‘Tis much he dares,
And to that dauntless temper of his mind,
He hath a wisdom that doth guide his valor
To act in safety.”
—William Shakespeare (1564–1616)