Economic Growth and Tax Relief Reconciliation Act of 2001

Economic Growth and Tax Relief Reconciliation Act of 2001

The Economic Growth and Tax Relief Reconciliation Act of 2001 was the first of President George W. Bush's (R) radical tax cuts. Tax rates were lowered across the board, with the highest bracket being decreased 39.6 percent to 35 percent. The capital gains tax was lowered as well, from 10 percent to 8 percent. The bill also reduced the estate tax annually (while raising the amount of money that qualifies for estate tax coverage), until 2010 when it was repealed for one-year.

The law provided tax credits for education, created tax incentives for married couples and increased the Child Tax Credit from $500 to $1,000.

Cry Wolf Quotes

President Obama and Speaker Nancy Pelosi want to keep the current rates on income, capital gains and dividends in place only for those who happen to fit their description of ‘middle class.’ In this moment of economic distress, will they get their way even though a bipartisan majority of the House disagrees with them? Or will present tax rates be extended for all American taxpayers—and most importantly for small businesses and investors, the nation's job creators?

-
House minority whip Eric Cantor (R-VA), Wall Street Journal.

I hate to tell you, by Washington's definitions that [Melancon]'s using, virtually everybody in this audience is the wealthy.

-
Sen. David Vitter (R-LA)

Apparently our president thinks that living in America is so wonderful that we will never leave, despite being directly attacked and held responsible for the political class’s inability to constrain its desire to buy votes with our money. He should think again.

-
Glendon Esnard, president of capital markets for Grubb & Ellis (a real estate and investment firm), letter to the editor, Wall Street Journal.

[The rich are] the people who've been hit hardest by this recession and who we need to create the jobs that will get us out of it.

-
Senate Minority Leader Mitch McConnell (R-KY). Speech on the Senate floor.

Evidence