Signed by President George Bush

Vote Smart's Synopsis:

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

Highlights:

• 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 10 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and generation-skipping taxes gradually until January 1, 2011, at which time estate and generation-skipping taxes are repealed, and the maximum gift tax rate is 40%.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.

Full Bill Text

Vote Smart's Synopsis:

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

Highlights:

• 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 10 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and generation-skipping taxes gradually until January 1, 2011, at which time estate and generation-skipping taxes are repealed, and the maximum gift tax rate is 40%.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.

Full Bill Text

Vote Smart's Synopsis:

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

Highlights:

• Creates a new 10% tax bracket.

• Cuts the top 4 income tax brackets from 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.

Full Bill Text

Vote Smart's Synopsis:

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

Highlights:

• Changes the existing 5 federal income tax brackets of 15%, 28%, 31%, 36%, and 39.6% to a system based on 4 tax rate brackets: 10%, 15%, 25%, and 33% by 2006.

Full Bill Text

Full Bill Text