In addition to the new 10 percent tax rate, other rates will gradually decline, with the 39.6 percent top rate dropping to 35 percent by 2006, the 36 percent rate to 33 percent, the 31 percent rate to 28 percent and the 28 percent rate to 25 percent. The 15 percent rate remains the same. Other aspects of the package do not fully kick in for years. The estate tax, the bane of small businessmen and the wealthy who hope to pass on their assets to their children, will not be repealed until 2010. Couples looking for full relief from tax code quirks that make them pay more than if they filed individually will have to wait a while.
Liberal groups see that as a major flaw in the legislation.
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