March 9, 2001
House Passes H.R. 3
The Economic Growth and Tax Relief Act of 2001
On March 8, 2001, the House passed H.R. 3, the Economic Growth and Tax Relief Act of 2001.
Among other things, if enacted the bill would:
- Gradually reduce Federal income tax rates and consolidate rate brackets, over a 6-year period.
- Provide that the long-term financial condition of the OASDI and HI trust funds would not be affected by the tax changes. This provision is intended to avoid loss of income to the trust funds under the taxation of benefits provision. In effect, this provision would require a rebate to the trust funds (to come from general revenues) of amounts lost due to the tax cuts.