Defining the Term "Bush Tax Cuts"

There has been a lot of talk lately about Congress needing to decide on the fate of the "Bush Tax Cuts."  What exactly are people like me referring to when we say "Bush Tax Cuts"?  I'll try to explain a little bit in this article.

The term "Bush Tax Cuts" refers to a host of tax provisions implemented in the early years of the Bush administration.  These provisions are set to expire on December 31, 2010, unless Congress extends them.  If Congress takes no action:

• The top tax rate in 2011 will rise to 39.6% (up from 35% now), and the bottom rate will rise to 15% (up from 10% now).
• The "child tax credit" will be cut in half in 2011, dropping from $1,000 to just $500.
• The so-called "marriage penalty" will return in 2011.
• The long-term capital gains tax rate is set to increase, and the preferential tax treatment of "qualified dividends" will go away.
• The estate tax will return in 2011 at its pre-Bush Tax Cut levels of a $1 million exemption and 55% top rate.