EGTRRA-- Economic Growth and Tax Relief Reconciliation Act.

Basically, this act was passed to allow individuals to put money on the side, as well as to increase the limit that base benefit off. It lowered taxes and simplified retirement and qualified plan rules such as 401k and 403b.

The marriage tax penalty was recently reduced by the Jobs and Growth Tax Relief Reconciliation Act of 2003. This act equalized the standard deduction (one single person now equals two married people) and increasing the income range for the 15% tax bracket for those filing as married. This, coupled with the Working Families Tax Relief Act of 2004 essentially eliminated the marriage tax penalty for families in the lower tax brackets through 2010. In general, it was estimated that married couples paid an average tax of $1,400 more than their single counterparts and this amount grows as the incomes of the couple increases.

Catch-up contributions for 401(k) plans for individuals age 50 and over were introduced in 2002 as part of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA). This allowed older individuals to contribute additional funds to their retirement savings accounts to help boost their nest egg before retirement.

how did the homestead act encourage economic growth

It was an act "to amend the Internal Revenue Code of 1954 to encourage economic growth through reductions in individual income tax rates, the expensing of depreciable property, incentives for small businesses, and incentives for savings, and for other purposes".