Making sense of the new tax legislation.
Journal of Accountancy › Vol. 192 Nbr. 3, September 2001
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Making sense of the new tax legislation.
EXECUTIVE SUMMARY
* PRESIDENT BUSH SIGNED THE ECONOMIC GROWTH AND Tax Relief Reconciliation Act of 2001 into law June 7. The $1.35 trillion tax relief package affects almost every taxpayer in a variety of ways. CPAs may, need to reconsider some of the tax planning assumptions that have guided them over the last few years. * THE CENTERPIECE OF THE NEW LAW IS A CONSOLIDATION and reduction of the marginal tax rates for individuals. Most taxpayers will come out ahead as a result of the rate cuts, which include a new 10% tax bracket and advance refund checks--$300 for single taxpayers, $600 for married filing jointly and $500 for head of household--for most Americans. * LOWER TAX RATES MAY MAKE CLIENTS LESS INCLINED to jump through hoops to get the 20% rate on long-term capital gains. The lower rates also will make tax-deferred saving for retirement less of a priority, but they should make Roth IRAs more attractive. * THE 2001 AC...See the full content of this document
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