The biggest tax cut in 20 years will soon start finding its way into your wallet. The recently enacted Economic Growth and Tax Relief Reconciliation Act of 2001 promises to deliver tax savings to nearly every American.

The $1.35 trillion federal tax cut, which is to be phased in over the next decade, includes tax-rate reductions, child credit increases, marriage penalty relief, education incentives, estate-tax repeal, retirement plan provisions, and alternative minimum tax relief, among other changes.

This publication summarizes the new tax law and the ways it might apply to your situation. We caution you that many of the new rules are complex, and that the impact of many of the changes won’t be felt for a number of years due to the phase in of these provisions. We urge you to seek professional assistance before acting on anything you read in this summary. Because so many significant changes are being made, careful planning now — and in the years ahead — is essential.

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Copyright © 2001 by NPI.

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