Project Vote Smart

Legislation - Signed (Executive) - June 7, 2001

Legislation - Conference Report Adopted (House) - May 26, 2001 (Key vote)

Title: Economic Growth and Tax Relief Reconciliation Act, 2001

Vote Smart's Synopsis:

Vote to adopt a conference report that would institute $1.35 trillion in tax cuts over an 11-year period.

Highlight: -Creates a 10% tax bracket that applies retroactively to 2001 and provides immediate tax rebates for individuals who fall within the 10% range -The 28%, 31%, 36%, and 39% tax brackets will be reduced incrementally to 25%, 28%, 33%, and 35% respectively by 2006 -Doubles the child tax credit, to $1,000 per child, over a ten year period -Increases dependent care tax credit to offset child care expenses -Increases the standard deduction of married couples to double that of single taxpayers by 2005 -Increases the annual limit on contributions to Education Savings Accounts (ESAs) from $500 to $2,000, beginning in 2002 -Phases out estate, gift and generation-skipping taxes gradually until January 1, 2011, at which time estate and generation-skipping taxes are repealed, and the maximum gift tax rate is 40% -Increases annual limit on contributions to personal Investment Retirement Accounts (IRAs) incrementally to $5,000 -Permits tax-free withdrawals from IRAs for charitable purposes

Legislation - Conference Report Adopted (Senate) - May 26, 2001 (Key vote)

Title: Economic Growth and Tax Relief Reconciliation Act, 2001

Vote Smart's Synopsis:

Vote to adopt a conference report that would institute $1.35 trillion in tax cuts over an 11-year period.

Highlight: -Creates a 10% tax bracket that applies retroactively to 2001 and provides immediate tax rebates for individuals who fall within the 10% range -The 28%, 31%, 36%, and 39% tax brackets will be reduced incrementally to 25%, 28%, 33%, and 35% respectively by 2006 -Doubles the child tax credit, to $1,000 per child, over a ten year period -Increases dependent care tax credit to offset child care expenses -Increases the standard deduction of married couples to double that of single taxpayers by 2005 -Increases the annual limit on contributions to Education Savings Accounts (ESAs) from $500 to $2,000, beginning in 2002 -Phases out estate, gift and generation-skipping taxes gradually until January 1, 2011, at which time estate and generation-skipping taxes are repealed, and the maximum gift tax rate is 40% -Increases annual limit on contributions to personal Investment Retirement Accounts (IRAs) incrementally to $5,000 -Permits tax-free withdrawals from IRAs for charitable purposes

Legislation - Bill Passed (Senate) - May 23, 2001 (Key vote)

Title: Economic Growth and Tax Relief Reconciliation Act, 2001

Vote Smart's Synopsis:

Vote to pass a bill that would institute $1.35 trillion in tax cuts over an 11-year period.

Highlight: -Creates a new 10% tax bracket -Cuts the top four income tax brackets - 28%, 31%, 36%, and 39.6% to 25%, 28%, 33%, and 35% by 2011 -Increases child tax credit to $1,000 per child by 2011 -Increases the standard deduction of married couples to double that of single taxpayers by 2005 -Increases the annual limit on contributions to education Investment Retirement Accounts (IRAs) from $500 to $2,000 -Gradually reduces and repeals the estate and generation-skipping transfer taxes by January 1, 2011 -Increases annual limit on contributions to personal IRAs incrementally to $5,000 by 2011

Legislation - Bill Passed (House) - May 16, 2001 (Key vote)

Title: Economic Growth and Tax Relief Reconciliation Act, 2001

Vote Smart's Synopsis:

Vote to pass a bill that would cut income taxes $958.2 billion over an 11-year period.

Highlight: -Changes the existing five federal income tax brackets: 15%, 28%, 31%, 36%, and 39.6% to a system based on four tax rate brackets: 10%, 15%, 25%, and 33% by 2006

Legislation - Introduced (House) - May 15, 2001

Title: Economic Growth and Tax Relief Reconciliation Act, 2001