Nearly all of the cuts (individual rates, capital gains, dividends, estate tax) were set to expire after 2010. Its goal was to end the 2001 recession. ( The result is a roller coaster of rate and other changes between now and 2010. tax and alternative minimum tax calculations. 2001-present War on Terror the 8 and 18 percent rates from earlier legislation. 1997 Balanced Budget and Taxpayer Relief Act Why Did Obama Extend the Bush Tax Cuts in 2010? 2 Tax Cuts for the Rich That Affect You Today. [2] This comparison shows how the ordinary taxable income brackets for each filing status were changed. Title III: Reduction in Taxes on Dividends and Capital Gains - (Sec. http://www.gpo.gov/fdsys/pkg/BILLS-108hr2enr/pdf/BILLS-108hr2enr.pdf. Below is a summary of selected provisions. Title IV: Temporary State Fiscal Relief - (Sec. (. 106) Increases the $49,000 (for 2001 through 2004) and $35,750 (for 2001 through 2004) alternative minimum tax exemption amounts to $58,000 (for 2003 and 2004) and $40,250 (for 2003 and 2004), respectively. A devalued dollar raises the cost of imports and can trigger inflation. If it grows faster, it could reach the peak phase of the business cycle and overheat. The phase-out for eligible Under the Act, 25 percent of corporate estimated tax payments due on September in service under the new provision before January 1, 2005 except, for property All Rights Reserved Many companies, most notably Microsoft, started issuing dividends for the first time. is in $1,000 increments for the $100,000 amount and $10,000 increments for software is eligible for expense method depreciation if placed in service Much of executive compensation is paid in stocks and stock options. beginning after 2004, the applicable percentages revert to those allowed under [1] zero for taxable years beginning after 2007 and before 2009 (unless changed 501) Requires payment of 25 percent of September 2003 corporate estimated taxes by October 1, 2003. effective for 2003, 2004 and 2005. An act to provide for reconciliation pursuant to section 201 of the concurrent resolution on the budget for fiscal year 2004. January 1, 2009. 302) Provides, for the regular and alternative minimum tax, for the taxation of dividends received by an individual from domestic corporations at net capital gain rates. reductions in the regular income tax rates in excess of the 15 percent rate. H. Rept. not hold a share of stock for more than 60 days during the 120-day period alternative minimum tax purposes. 303) Sunsets provisions of this title December 31, 2008. election with respect to any class of property for purposes of bonus depreciation Thus, for new passenger automobiles that are depreciable, the allowable size of the 15 percent regular income tax bracket for joint returns to twice in a taxable year beginning after 2002 and before 2006. [externalActionCode] => 36000 1973-74 Oil crisis Its goal was to end the 2001 recession. [chamberOfAction] => The new law also provides the $400,000 amount. 1989-92 End of the Cold War Which treaties qualify for the JGTRRA's special dividend rate? Washington, DC: CQ Press, 2006. http://library.cqpress.com/catn/catn01-426-18052-964254. The Act increases the The bonus depreciation The 2003 Act wipes out ( The Act increases the Among other provisions, the act accelerated certain tax changes passed in the Economic Growth and Tax Relief Reconciliation Act of 2001, increased the exemption amount for the individual Alternative Minimum Tax, and lowered taxes of income from dividends and capital gains. 1992 Presidential Election [chamberOfAction] => House foreign persons or entities). The Jobs and Growth Tax Relief Reconciliation Act of 2003 was the second major tax cut legislation signed into law by President George W. Bush. by Neil E. The Federal Reserve started raising interest rates again to slow the economy down. Law No. The phase-out applies, dollar for dollar, to qualifying of Economics, and Roger A. McEowen, associate professor of Agricultural Economics from domestic corporations (either C or S corporations) and qualified foreign She writes about the U.S. Economy for The Balance. ( In Congress and the Nation, 2001-2004, vol. AMT exemption amount for married taxpayers filing a joint return and surviving 3 June 2003 Jobs and Growth Tax Relief Reconciliation Act of 2003, continued from page 2 continued on page 4 company tax rate (also to 15 percent) effective in 2003. This provision applies for purposes of both regular tax and 2: Jobs and Growth Tax Relief Reconciliation Act of 2003) into law (Public Law 108-27) on May 28, 2003. [actionDate] => 2003-05-23 The provision provides 1985 Balanced Budget and Emergency Deficit Control Act If a shareholder does provision for 2003 at rates of 5 and 15 percent. (Sec. The provision applies (consideration: CR S6474-6475; text as passed Senate: CR 5/20/2003 S6741-6786) It had effectively cut personal income taxes, but hadn't helped businesses. The Jobs and Growth Tax Relief Reconciliation Act of 2003 was the second major tax cut legislation signed into law by President George W. Bush. The Act increases the For passenger automobiles, [displayText] => Reported (Amended) by the Committee on Ways and Means. gain for taxable years beginning after December 31, 2002 and beginning before Moreover, the United States was waging war in both Afghanistan and Iraq. The expense method depreciation 107) Establishes that the sunset provisions of EGTRRA apply to this title. (Sec. For taxable years Investors also bought more dividend-paying stocks, boosting profitability of companies that paid dividends. The Act increases the 1990 Budget Enforcement Act The provision continues through 2007. The newly-elected Obama administration and Congress, faced with the Great Recession, extended it until 2012 as part of the deal to avoid the fiscal cliff. and the phase-out threshold amount ($400,000) are adjusted for inflation in Footnotes not included. Shown Here: Public Law No: 108-27 (05/28/2003) Jobs and Growth Tax Relief Reconciliation Act of 2003 - Title I: Acceleration of Certain Previously Enacted Tax Reductions - (Sec. 202) Increases the $25,000 expensing allowance to $100,000 for 2003 through 2005, the $200,000 phaseout limit to $400,000 for 2003 through 2005, and includes off-the-shelf computer software placed in service in 2003 through 2005 as qualifying property. May 5, 2003 if the property was acquired by the taxpayer after May 5, 2003 (after expense method depreciation has been claimed). The tax cuts enacted by this legislation were retroactive to January 1, 2003 and first applied to taxes filed for the 2003 tax year. As a result, Bush racked up the second-highest U.S. debt by president. 11, 105. for those in the 10 or 15 percent brackets and from 20 percent to 15 percent running through 2007, the Act increases the taxable income level for the 10 1990-92 Early 90s Recession $40,250 for taxable years beginning in 2003 and 2004. JGTRRA continued on the precedent established by the 2001 EGTRRA, while increasing tax reductions on investment income from dividends and capital gains. 401) Provides $10 billion for State and local government assistance and $10 billion for Medicaid assistance through September 30, 2004. special allowance for eligible property acquired after September 10, 2001, Democrats vs. Republicans: Which Is Better for the Economy? That put $9.2 billion more into the pockets of stockholders in just the first year. Higher taxes would have slowed spending. property placed in service each year above the phase-out amount. [externalActionCode] => 28000 As dividend-paying stocks become more popular, companies issue more of them instead of bonds. [externalActionCode] => 5000 in the meantime). Like the tax cut package passed in 2001, these cuts were scheduled to expire in December 2010. more Bush Tax Cuts property. (Sec. deduction for single returns effective for 2003 and 2004. 2007-09 Financial Crisis Changed the dividend tax rate to the same as the long-term capital gains rate. The Jobs and Growth Tax Relief Reconciliation Act of 2003, was passed by the United States Congress on May 23, 2003 and signed into law by President George W. Bush on May 28, 2003. corporations are generally taxed at the same rates as net long-term capital annual allowance, which was $25,000 for 2003, has been increased to $100,000 15, 2003, is not due until October 1, 2003. [description] => Became Law They now have no expiration date. 1971 Termination of gold/dollar convertability Washington, DC: CQ Press, 2006. http://library.cqpress.com/catn/catn01-426-18052-964236. (text: CR H3910-3913) depreciation is $3,060 plus $7,650 or $10,710. Many provisions provide only temporary tax relief, since they expire after a … 108-94. The resultant War on Terror, as war always does, introduced additional uncertainty. : 107-16) are known collectively as the "Bush Tax Cuts. to $7,000 and, for married individuals filing jointly from $12,000 to $14,000. 104) Revises the expansion of the 10 percent bracket for married taxpayers filing jointly scheduled to increase from $12,000 to $14,000 in 2008 as follows: (1) $14,000 through 2004; and (2) $12,000 for 2005 through 2007. described in I.R.C. 2003-56 apprises certain entities with fiscal years beginning in 2002 and ending after May 5, 2003, of the additional reporting requirements mandated by the Jobs and Growth Tax Relief Reconciliation Act of 2003 's (JGTRRA's) changes in the capital gain tax rates. 108–27, 117 Stat. As a result of JGTRRA, total dividend payments increased 20 percent from 2003 to 2012. 101) Amends the Internal Revenue Code to accelerate the increase to the $1,000 child tax credit to include 2003 and 2004. Their financing became more reliant on bonds than stocks. to sales after May 5, 2003, in taxable years ending on or after May 6, 2003. The 2003 Act reduces ", Jobs and Growth Tax Relief Reconciliation Act of 2003 (Pub.