It is disastrous long-term policy. But nearly all of the bill's provisions are phased in gradually, and some of them do not take effect at all until the middle or end of the decade. The bulk of the tax cuts come in the form of reductions in personal income tax rates. In addition to reducing income tax rates, the bill gradually doubles the child credit and applies it to many low-income families who cannot currently claim the credit. The legislation gradually reduces the federal estate tax, and then repeals it in 2010.
Married couples get a tax break.
The bill creates a deduction for college tuition expenses. The bill includes nearly all the elements sought by Mr. Bush and Republican leaders. Republicans said they assumed future Congresses would vote to extend the tax cuts. In general, the provisions benefiting low-income people take effect faster than those that benefit only wealthier people. Republicans said they would have to pass another bill at some point to reduce the alternative minimum tax, which was originally passed to ensure that wealthy taxpayers did not escape taxation through clever use of deductions and credits.