Tax-Cut Legislation: The Economic Growth and Tax Relief Act of 2001 (H.R. 3)

Publication Date: March 2001

Publisher: Library of Congress. Congressional Research Service

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Research Area: Banking and finance

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Abstract:

On March 8, 2001, the House of Representatives approved H.R. 3, the Economic Growth and Tax Relief Act of 2001. The bill provides a gradual reduction in the statutory tax rates that apply to taxable income under the individual income tax. It also provides that current law's refundable child credit and earned income tax credits will not be reduced by an individual's alternative minimum tax (AMT). H.R. 3's tax rate cut is almost identical to that proposed by President Bush during the 2000 presidential campaign and as sent to Congress in February, 2001. One difference, however, is retroactivity: H.R. 3's initial cut in current law's 15% rate would begin January 1, 2001, and withholding tables would be adjusted accordingly. President Bush has stated he is willing to accept a retroactive tax cut. This report will be updated as legislative developments occur.