Expiration of the 2001 Through 2006 Tax Cuts (CRS Report for Congress)
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| Release Date |
July 19, 2007 |
| Report Number |
RL34090 |
| Report Type |
Report |
| Authors |
Gregg A. Esenwein and Maxim Shvedov, Government and Finance Division |
| Source Agency |
Congressional Research Service |
Summary:
The Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16)reduced marginal income tax rates, provided marriage tax penalty relief, providedtemporary relief from the alternative minimum tax (AMT), and increased the childtax credit. All of the act's provisions are scheduled to sunset (revert to prior lawlevels) at the end of 2010. The Jobs and Growth Tax Relief Reconciliation Act of2003 (P.L. 108-27) accelerated the implementation of certain tax reductionsoriginally enacted in the 2001 act. The 2003 act also reduced the tax rate on dividendand long-term capital gains income, effective through 2008. The Working FamilyTax Relief Act of 2004 (P.L. 108-311) extended many of the tax provisionsscheduled to expire at the end of 2004. The Tax Increase Prevention andReconciliation Act of 2005 (P.L. 109-222) extended the capital gains and dividendtax reduction through 2010 and contained a one-year patch for the alternativeminimum tax.Additional tax reductions and extensions to these tax acts were included in theJob Creation and Worker Assistance Act of 2002 (P.L. 107-147) and the Tax Reliefand Health Care Act of 2006 (P.L. 109-432).Since all of the tax reductions expire at some point in the not-too-distant future,Congress faces the issue of whether to extend or make the reductions permanent.
