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Economic Growth and Tax Relief Reconciliation Act

Bill NumberHR-1836

Enacted - Signed by the President

Read the Bill (Reading difficulty: Hard)

Sponsor & Key Contributors
William (Bill) Thomas

Related Issues...
Understanding Tax Rates

Text of the Bill

Full text of the Economic Growth and Tax Relief Reconciliation Act.
Warning - this is not easy to read. One thing we hope to do is advocate bills that most people will be able to understand with a reasonable amount of effort.

Other names for this bill...

The Economic Growth and Tax Relief Reconciliation Act also is known as...

o This bill was part of a series of bills referred to as the Bush Tax Cuts

Major provisions of the bill

This bill was the first step in a series of tax cuts.

o The lowest tax bracket (15-percent marginal tax rate) was divided into two brackets, with the lower one having a 10-percent marginal rate.

o The highest tax bracket (39-percent) was to be gradually lowered to 35-percent by 2006

o Estate taxes were reduced in two ways. First, the exemption for estate taxes was set to gradually rise to $3.5 million by 2009. Second, the highest marginal rate on estates and gifts was set to be gradually reduced to 45 percent (from 60 percent) by 2009. The estate tax was completely eliminated in 2010, just for that year.

Sunset provision

This bill was set to remain in effect for 10 years, expiring in 2011

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