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Jobs And Growth Tax Relief Reconciliation Act of 2003 (JGTRRA)

What is 'Jobs And Growth Tax Relief Reconciliation Act of 2003 - JGTRRA'

A U.S. tax law, passed by Congress on May 23, 2003, that lowered the maximum individual income tax rate on corporate dividends to 15%. The act also reduced the long-term individual income tax rate on capital gains to 15%. The act was signed by President George W. Bush on May 28, 2003, and was intended to amplify the effects of the

Explaining 'Jobs And Growth Tax Relief Reconciliation Act of 2003 - JGTRRA'

The JGTRRA was put forward as part of an effort to jump-start the U.S. economy. The law significantly reduced the amount of tax paid by investors on dividends and capital gains. This development made it much more attractive for public companies to pay cash dividends to shareholders (instead of holding onto their cash and reinvesting it into expanded operations). Thus, after the enactment of the JGTRRA, the number of U.S. companies paying regular dividends increased substantially.


Further Reading


Jobs and Growth Tax Relief Reconciliation Act of 2003: A financial professional's overview
search.proquest.com [PDF]
This article provides a roadmap to the new tax law (Jobs and Growth Tax Relief Reconciliation Act of 2003) with comments on selected items for financial professionals. The provisions include accelerating benefits for married taxpayers, expanding the lowest tax bracket, reducing individual tax rates, enhancing Section 179 limits and additional first-year" bonus" depreciation, and lowering the maximum capital gains rate and the maximum rate for most dividends to 15%. The alternative minimum tax was largely unaffected and remains a …


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