Theme 2: Taxes in U.S. HistoryLesson 7: Tax Reform in the 1990s and 2000s
Three important acts of tax legislation from 1990-2009 were aimed at reducing the tax burden on individual taxpayers, small businesses, and corporations.
In 1997, President Clinton and Congress enacted the Taxpayer Relief Act.
The key measures included:
In 2001, President Bush and Congress passed the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The Act increased the child tax credit and expanded the education credits.
The Act created the Child and Dependent Care tax credit for employer-provided childcare expenses, and increased the existing dependent care and adoption credits.
President Obama and Congress passed the American Recovery and Reinvestment Act of 2009 (ARRA, or Recovery Act). The purpose of ARRA was to create and save jobs, jumpstart the economy, and build the foundation for long-term economic growth. To put more money in the pockets of consumers, ARRA also:
Activity 1: Refundable and Nonrefundable Tax Credits Match the clue to the type of credit.
Activity 2: Components of Tax Relief Measures 1990–2010 Explore the provisions of the tax relief measures.
Activity 3: How to Stimulate the Economy Take a virtual field trip to learn more about the American Recovery Act.
Activity 4: Economic Timeline of Events 1990–2010 Match the event to the year it occurred.
Complete the assessment page to test your understanding of Tax Reform in the 1990s and 2000s.
Want to learn more about how some of the tax relief measures have been implemented? Visit the following Hows of Taxes modules: Module 8: Claiming Child Tax Credit and Additional Child Tax Credit, Module 9: Tax Credit for Child and Dependent Care Expenses, and Module 10: Education Credits.
Which credit helped pay for childcare expenses?
Did You Know?
Some taxpayers received a rebate check between $300 and $600 in 2008 due to the 2008 Bush economic stimulus package and, in 2009, they received a paycheck increase due to the Making Work Pay credit.
Test your tax trivia knowledge by answering the multiple-choice question. Click on the correct answer. To assess your answer, click the Check My Answers button.
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