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:
“Three factors—the belief that child care is female work, the failure of ex-husbands to support their children, and higher male wages at work—have taken the economic rug from under that half of married women who divorce.”
—Arlie Hochschild (20th century)
“Next to the right of liberty, the right of property is the most important individual right guaranteed by the Constitution and the one which, united with that of personal liberty, has contributed more to the growth of civilization than any other institution established by the human race.”
—William Howard Taft (1857–1930)
“I come into the peace of wild things
who do not tax their lives with forethought
of grief.”
—Wendell Berry (b. 1934)
“If, during his daily walk, he met any children flying kites, playing marbles, or whirling peg tops, he would buy the toys from them and exhort them not to gamble or indulge in vain sport.”
—For the State of Rhode Island, U.S. public relief program (1935-1943)
“Every day begins with an act of courage and hope: getting out of bed.”
—Mason Cooley (b. 1927)