| Plan Now For a Decade of Tax Relief |  Printer-friendly version |
| A Guide to the Economic Growth and Tax Relief Reconciliation Act of 2001. | |
On June 7, 2001, the largest tax cuts and most extensive tax planning opportunity Americans have experienced since 1981 were signed into law. Under Congress' rules for balancing the federal books, all budgetary provisions are due to "sunset" after the last day of 2010. Therefore, this law has both a beginning and end-and a span in between that should be considered a decade of tax planning opportunity.
We have summarized tax law changes and their planning applications in four areas:
Of course, the challenge for each taxpayer is to apply information and ideas on a personal level to reduce taxes and achieve financial goals. Consider this a starting point, and then seek additional guidance from a financial professional to maximize this decade of tax opportunity.
A "SUNSET" THAT MAY NOT BE BEAUTIFUL
A "sunset" provision of this act will automatically repeal budget provisions and restore prior law after the last day of 2010. This is a result of the "Byrd Rule," which prevents the Senate from adopting proposals that will impact future federal budgets. Since Congress may face even more fiscal pressure in the future, taxpayers should make plans that can be modified if tax breaks prove temporary.