Basics:

First, the Act's provisions expire in 2011 if not extended by Congressional action. So provisions regarding income tax rates, more education and retirement saving options, gradual reduction (and eventual elimination) of the federal estate tax, as well as some marriage penalty relief, could disappear come 2011.

Second, income-tax cuts, everyone should note, are being phased in. Consequently, for those of you who made an ATJ pledge to be paid over time, those of you considering such pledges or those among you helping to secure such pledges, deductions are worth more and income is worth less this year than any other year covered under the changes. Donors in the highest brackets, for instance, will find that charitable gifts this year could result in tax savings up to 39.1% of the value of the gift (federal). Next year (2002-2003) that amount would be 38.6% and the maximum tax savings will eventually drop to 35% after 2005.

Summary:

While donors to the Access to Justice fund are not motivated only by tax concerns, keeping tax changes in mind and planning the timing of gifts might be useful. Indeed, if you have an outstanding pledge you might think about making your gift this calendar year to get the most benefit under the present federal tax deduction. The Tax year 2001 might be the best year, tax wise, for you to complete a pledge or make a significant gift to the Access to Justice Fund. Besides creating a new tax bracket the existing brackets are being cut a little over time. Paying your outstanding pledge now or securing a gift for Access to Justice now makes sense as "Uncle Sam" is taxing you more on your income today than he will in 2006 when the current tax act settles into rates of 10%, 15%, 25%, 28%, 33% and 35% (highest).