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Jobs And Growth Tax Relief Reconciliation Act of 2003

Definition

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. Nearly all of the cuts were set to expire after 2010.

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

An act passed by congress that was intended to improve the economy of the United States by reducing the taxes collected, giving the population more money to spend. The act was passed in May 2003 and signed into law shortly after.

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

The passing of the Jobs and Growth Tax Relief Reconciliation Act of 2003 lowered the tax rate applied to dividend income by making this income count as capital gains instead of as a part of normal income. The act also simplified rules relating to qualifying retirement plans and increased the personal tax exemption amount of the 'alternative minimum tax'.


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 …



Q&A About Jobs And Growth Tax Relief Reconciliation Act of 2003


What was passed in May 23, 2003?

The act was passed in May 23, 2003.

How will you benefit from this tax relief ?

You will benefit by having more money to spend on goods and services that can help stimulate economic growth .

How does treating dividends as capital gains instead of normal income make sense ?

Treating dividends as capital gain makes sense because most investors view dividends as an investment return rather than a part of their salary or wages .

Who passed the act?

Congress passed the act.

Does counting dividend income as capital gains instead of normal income affect your taxes ?

Counting dividend income as capital gains instead of normal income affects your taxes because you pay less taxes on these investments .

What did congress intend to do with this act?

Congress intended to improve the economy by reducing taxes collected and giving people more money to spend.

How much tax relief does this act provide for taxpayers?

This act provides a lot of tax relief for taxpayers.

Why were dividend income rules simplified under this act ?

To simplify dividend income rules under this act because it made sense to treat dividends as capital gains instead of normal income since most investors view dividends as an investment return rather than a part of their salary or wages .