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estate tax annually (while raising the amount of money that qualifies for estate tax coverage), until 2010 when it was repealed for one-year.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

This is the largest tax increase in American history….the looming tax hike will make it harder for small businesses to keep their doors open. These are not only the people who create jobs, but not only that, they represent the spirit of America.

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The Glenn Beck Show, Fox News.

It's idiotic to think about increasing taxes at a time like this….this is going to result in the largest tax increase in U.S. history. And again, it's idiotic….But Democrats are poised now to cause this largest tax increase in U.S. history. It's a tax increase of $3.8 trillion over the next 10 years, and it will have an effect on every single American who pays an income tax. Small businesses especially will be hit hardest....

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Sarah Palin, Fox News.

[Obama tax proposal is] a bullet in the head for an awful lot of people that are going to be laid off and an awful lot of people who are hoping to get their jobs back.

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U.S. Chamber of Commerce economist Martin Regalia, The Hill.

[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.

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

Evidence