Repeal of Phaseouts
Higher-income taxpayers have been subject to what amounts to a tax rate surcharge because as earnings in certain income ranges increases, up to 80% of itemized deductions and up to 100% of personal exemptions are disallowed.

Looking ahead five years, these taxpayers will begin to see relief because these itemized deduction and personal exemption "phaseouts" are being repealed. As is characteristic of the 2001 tax legislation, the phaseout repeal will take place in stages: 1/3 in 2006 - 2007, 2/3 in 2008 - 2009, and 100% in 2010.