Economic Growth and Tax Relief Reconciliation Act of 2001

1/16/2023, 3:33 PM
Economic Growth and Tax Relief Reconciliation Act of 2001 - States that tax rate revisions made by this Act shall not be treated as a tax rate change for purposes of applying the pre-and post-change tax rates under section 15 of the Internal Revenue Code. (Such provision would otherwise apply two tax rates to income in the same tax year, depending upon effective date.)

Amends the Code, as of tax year 2001, to establish (in addition to existing brackets) a 12 percent individual tax bracket for each filing status. Caps taxable income levels for the 12 percent bracket at: (1) $12,000 for married individuals filing jointly; (2) $10,000 for heads of households; and (3) $6,000 for unmarried individuals or married individuals filing separately. Applies the current 15 percent bracket to income levels above the 12 percent caps but below current 15 percent caps.

Prohibits minimum bracket amount inflation adjustments through tax year 2006. Revises the cost-of-living adjustment formula, as of tax year 2007.

Provides, beginning in tax year 2002, for specified reductions in the 12, (maintaining the revised 15 percent bracket without further change), 28, 31, 36, and 39.6 percent individual (and estate) brackets, so that as of 2006 and thereafter, there shall be four tax brackets of 10, 15, 25, and 33 percent.

Repeals mandatory reductions in the additional (three or more children) child tax credit and the earned income credit for taxpayers subject to the alternative minimum tax.

Revises current tax rates in conformity with the amendments made by this Act respecting: (1) accumulated corporate earnings; (2) personal holding companies; (3) voluntary withholding on certain Federal payments, unemployment benefits, gambling winnings, and Indian casino profits; (3) backup withholding; and (4) supplemental wage payments.

States that amounts transferred to any Social Security Act trust fund shall be determined as if this Act had not been enacted.

Congress
107
Number
HR - 1836
Introduced on
2001-05-15
# Amendments
139
Sponsors
+5

Variations and Revisions

Text
PDF

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Economic Growth and Tax Relief Reconciliation Act of 2001 - States that tax rate revisions made by this Act shall not be treated as a tax rate change for purposes of applying the pre-and post-change tax rates under section 15 of the Internal Revenue Code. (Such provision would otherwise apply two tax rates to income in the same tax year, depending upon effective date.)

Amends the Code, as of tax year 2001, to establish (in addition to existing brackets) a 12 percent individual tax bracket for each filing status. Caps taxable income levels for the 12 percent bracket at: (1) $12,000 for married individuals filing jointly; (2) $10,000 for heads of households; and (3) $6,000 for unmarried individuals or married individuals filing separately. Applies the current 15 percent bracket to income levels above the 12 percent caps but below current 15 percent caps.

Prohibits minimum bracket amount inflation adjustments through tax year 2006. Revises the cost-of-living adjustment formula, as of tax year 2007.

Provides, beginning in tax year 2002, for specified reductions in the 12, (maintaining the revised 15 percent bracket without further change), 28, 31, 36, and 39.6 percent individual (and estate) brackets, so that as of 2006 and thereafter, there shall be four tax brackets of 10, 15, 25, and 33 percent.

Repeals mandatory reductions in the additional (three or more children) child tax credit and the earned income credit for taxpayers subject to the alternative minimum tax.

Revises current tax rates in conformity with the amendments made by this Act respecting: (1) accumulated corporate earnings; (2) personal holding companies; (3) voluntary withholding on certain Federal payments, unemployment benefits, gambling winnings, and Indian casino profits; (3) backup withholding; and (4) supplemental wage payments.

States that amounts transferred to any Social Security Act trust fund shall be determined as if this Act had not been enacted.

Alternative Names
Official Title as IntroducedTo provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002.
Policy Areas
Taxation
Potential Impact
AIDS (Disease)•
Accidents•
Accounting•
Administrative procedure•
Adoption•
Adoptive parents•
Aircraft pilots•
Airlines•
Alaska•
Alien labor•
Aliens•
Annuities•
Armed Forces and National Security•
Arsenic•
Arts, Culture, Religion•
Books•
Building construction•
Business income tax•
Capital gains tax•
Charitable contributions•
Charities•
Church schools•
Churches•
Civil Rights and Liberties, Minority Issues•
Civil Service pensions•
College costs•
Commerce•
Communicable diseases•
Compensation for victims of crime•
Computer software•
Computer-assisted instruction•
Computers in education•
Congress•
Conservation easements•
Construction costs•
Consumer credit•
Corporation taxes•
Cost of living adjustments•
Costs•
Crime and Law Enforcement•
Day care•
Defined benefit pension plans•
Defined contribution plans•
Department of the Treasury•
Disabled•
Disaster relief•
Disasters•
Discrimination against the disabled•
Dividends•
Divorce•
Divorcees•
Drug industry•
Earned income tax credit•
Economics and Public Finance•
Education•
Education of disabled students•
Education savings accounts•
Educational finance•
Election candidates•
Elementary and secondary education•
Elementary education•
Elementary schools•
Emergency Management•
Emergency medical personnel•
Employee benefit plans•
Employee ownership•
Employment tax credits•
Enterprise zones•
Environmental Protection•
Estate tax•
Estates (Law)•
Excise tax•
Executive compensation•
Executive reorganization•
Executives•
Families•
Family enterprises•
Finance and Financial Sector•
Financial planning•
Financial services•
Financial statements•
Fire fighters•
Foster home care•
Fringe benefits•
Gift tax•
Government Operations and Politics•
Government paperwork•
Government publicity•
Government trust funds•
Governmental investigations•
Graduate education•
Health•
Health insurance•
High schools•
Higher education•
History•
Household workers•
Housing and Community Development•
Housing finance•
Human immunodeficiency viruses•
Immigration•
Income tax•
Indexing (Economic policy)•
Indian claims•
Indian lands•
Indigenous peoples•
Individual retirement accounts•
Infrastructure•
Inheritance tax•
Insurance premiums•
Insurance rates•
Interest•
Internal revenue law•
Inventories•
Investments•
Jewish holocaust (1939-1945)•
Labor and Employment•
Land transfers•
Law•
Life expectancy•
Limitation of actions•
Loans•
Local employees•
Malaria•
Married people•
Medical economics•
Medical research•
Medicare•
Merchant seamen•
Military medicine•
Minimum tax•
Minorities•
Nazism•
Old age, survivors and disability insurance•
Partnerships•
Pension funds•
Pension portability•
Pension trust guaranty insurance•
Personal income tax•
Pharmaceutical research•
Police•
Political action committees•
Potable water•
Private schools•
Privatization•
Profit sharing•
Public Lands and Natural Resources•
Public health personnel•
Public-private partnerships•
Racial discrimination•
Real estate appraisal•
Real estate business•
Religion•
Religious liberty•
Research and development tax credit•
Scholarships•
School buildings•
Science, Technology, Communications•
Secondary education•
Self-employed•
Sexual orientation•
Small business•
Social Welfare•
Social security finance•
Social security taxes•
Special education•
Standards•
State employees•
State taxation•
Stockholders•
Stocks•
Student aid•
Student loan funds•
Sunset legislation•
Survivors' benefits•
Tax administration•
Tax auditing•
Tax credits•
Tax cuts•
Tax deductions•
Tax exclusion•
Tax exemption•
Tax penalties•
Tax rates•
Tax refunds•
Tax returns•
Tax-deferred compensation plans•
Tax-exempt organizations•
Tax-exempt securities•
Taxation of foreign income•
Taxpayer compliance•
Teachers•
Teaching materials•
Transportation and Public Works•
Trusts and trustees•
Tuberculosis•
Tuition tax credits•
Urban affairs•
User charges•
Vaccines•
Valuation•
Volunteer workers•
Water Resources Development•
Water quality•
Water treatment plants•
Welfare eligibility•
Widowers•
Widows•
Withholding tax•
Women•
Women's retirement•
World health

Comments

Related

Member:  William M. Thomas
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Amendment Update Alert:  107 samdt 785 - undefined
Amendment Update Alert:  107 samdt 783 - undefined
Amendment Update Alert:  107 samdt 774 - undefined
Amendment Update Alert:  107 samdt 771 - To make the maximum amount of the deduction for higher education expenses fully effective immediately, to repeal the termination of such deduction, and to provide an offset for revenue loss.
Amendment Update Alert:  107 samdt 762 - undefined
Amendment Update Alert:  107 samdt 778 - undefined
Amendment Update Alert:  107 samdt 769 - To provide a circuit breaker for tax cuts if debt levels are not reduced as provided in the budget resolution for fiscal year 2002.
Amendment Update Alert:  107 samdt 784 - To provide a deduction for unreimbursed expenses related to certain public activities of emergency response professionals.
Amendment Update Alert:  107 samdt 766 - undefined
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Amendment Update Alert:  107 samdt 773 - undefined
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Amendment Update Alert:  107 samdt 776 - undefined
Amendment Update Alert:  107 samdt 760 - undefined
Amendment Update Alert:  107 samdt 782 - undefined
Amendment Update Alert:  107 samdt 764 - undefined
Amendment Update Alert:  107 samdt 770 - To accelerate the increase in exemption amount for estates and reduce the reduction in the 39.6 percent marginal tax rate.
Amendment Update Alert:  107 samdt 761 - undefined
Amendment Update Alert:  107 samdt 772 - undefined
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Amendment Update Alert:  107 samdt 780 - undefined
Amendment Update Alert:  107 samdt 775 - undefined
Amendment Update Alert:  107 samdt 768 - To limit the reduction in the 39.6 rate bracket to 1 percentage point and to increase the maximum taxable income subject to the 15 percent rate.
Amendment Update Alert:  107 samdt 779 - undefined
Amendment Update Alert:  107 samdt 754 - undefined
Amendment Update Alert:  107 samdt 750 - undefined
Amendment Update Alert:  107 samdt 757 - undefined
Amendment Update Alert:  107 samdt 746 - undefined
Amendment Update Alert:  107 samdt 756 - To require the Secretary of the Treasury to adjust the reduction in the highest marginal income rate if the discretionary spending level is exceeded in fiscal year 2002.
Amendment Update Alert:  107 samdt 753 - undefined
Amendment Update Alert:  107 samdt 737 - undefined
Amendment Update Alert:  107 samdt 742 - undefined
Amendment Update Alert:  107 samdt 743 - To increase the standard deduction and to strike the final two reductions in the 36 and 39.6 rate brackets.
Amendment Update Alert:  107 samdt 740 - undefined
Amendment Update Alert:  107 samdt 747 - To provide responsible tax relief for all income taxpayers, by way of a $1,200,000,000,000 tax cut, and to make available an additional $150,000,000,000 for critical investments in education, particularly for meeting the Federal Government's commitments under IDEA, Head Start, and the bipartisan education reform and ESEA reauthorization bill.
Amendment Update Alert:  107 samdt 738 - undefined
Amendment Update Alert:  107 samdt 735 - undefined
Amendment Update Alert:  107 samdt 755 - undefined
Amendment Update Alert:  107 samdt 748 - To provide a proportionate reduction in the credit for State death taxes before repeal, thereby allowing for responsible full estate tax repeal.
Amendment Update Alert:  107 samdt 752 - undefined
Amendment Update Alert:  107 samdt 734 - undefined
Amendment Update Alert:  107 samdt 736 - To ensure debt reduction by providing for a mid-course review process.
Amendment Update Alert:  107 samdt 744 - To increase the standard deduction and to reduce the final reduction in the 39.6 percent rate bracket to 1 percentage point.
Amendment Update Alert:  107 samdt 741 - To express the sense of the Senate that the modifications to the child tax credit contained in section 201 should be part of the final tax package.
Amendment Update Alert:  107 samdt 739 - undefined
Amendment Update Alert:  107 samdt 758 - undefined
Amendment Update Alert:  107 samdt 759 - undefined
Amendment Update Alert:  107 samdt 749 - undefined
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Recent Activity

Latest Summary11/28/2006
Economic Growth and Tax Relief Reconciliation Act of 2001 - States that tax rate revisions made by this Act shall not be treated as a tax rate change for purposes of applying the pre-and post-change tax rates under section 15 of the Internal Revenue ...
Latest Action6/7/2001
Became Public Law No: 107-16.