Bush Tax Cuts 2001

About Bush Tax Cuts 2001

The Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 were known collectively as the Bush tax cuts. The 2001 act reduced individual tax rates across the board, created the 10 percent bracket, and doubled the child tax credit to 1,000. The 2003 act accelerated the 2001 cuts and reduced capital gains and dividend taxes to 15 percent. The Bush tax cuts were estimated to reduce federal revenue by 1.35 trillion over 10 years. The cuts were set to expire in 2010 but were extended for two years under President Obama. The American Taxpayer Relief Act of 2012 made most Bush tax cuts permanent while raising the top rate to 39.6 percent.