Economic Growth and Tax Relief Reconciliation Act of 2001

The Republican tax cut program that was approved in 2001 during the first year of George W. Bush’s presidency. The act reduced personal income tax rates by three percentage points for each income tax rate over 10 years except for the top rate, 39.6 percent, which was reduced to 35 percent. These tax reductions are scheduled to disappear in 2011 unless the changes are made permanent. In addition, this act created a new 10 percent rate for the first $12,000 of taxable income for married couples filing jointly.