[1] The legislation is notable for having established the Roth IRA, creating a permanent exemption for these retirement accounts from capital gains taxes.

The top marginal long term capital gains rate fell from 28% to 20%, subject to certain phase-in rules.

The act permanently exempted from taxation the capital gains on the sale of a personal residence of up to $500,000 for married couples filing jointly and $250,000 for singles.

As inherited assets are automatically revalued to their current or "stepped-up" basis, any capital gains are permanently exempted from taxation.

This was the first law devoted solely to tax cuts that Congress enacted using the fast-track budget reconciliation process.