CHAPTER 12

The Economic Growth and Tax Relief Reconciliation Act of 2001

“Our current tax system is an ‘abomination.’”

U.S. Treasury Secretary PAUL O’NEILL in a May 17, 2001, interview with the Financial Times.

“Enough is enough folks.”

President GEORGE W. BUSH, April 16, 2001

When President Bush signed the Tax Relief Act of 2001, he made changes to 441 sections of the Internal Revenue Code and put into action the biggest tax reductions in two decades, and the first income tax rate cuts since 1986. These changes will be phased in over a 10-year period, and then, as of 2011, they all disappear! As of January 1, 2011, all of the changes are repealed and we go back to prior law.

Since 1986, there have been about 7,000 changes to the federal tax ...

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