Two provisions that increase effective marginal individual income tax rates will be eliminated under the Act.
	First, the Act eliminates the phase-out of itemized deductions for all taxpayers.  Currently,  under this limitation, itemized deductions are reduced by 3% of a taxpayer’s AGI over a threshold.  The result is to increase an affected taxpayer’s marginal rate to 103% of what the rate would otherwise have been.  The repeal will be phased in beginning in 2006 and fully repealed by 2010.
	Secondly, the Act repeals the phase-out of personal exemptions beginning in 2006.  Until 2010, taxpayers with AGI above stated thresholds must continue to reduce some portion of the amount of claimed personal exemptions (currently $2,900 for the taxpayer and each dependent).
	In 2001, the thresholds are $132,950 for single filers; $199,450 for married couples filing jointly.  This repeal effectively lowers the marginal tax rate of taxpayers previously subject to the limitation.