Jobs & Growth Tax Relief Reconciliation Act of 2003

Congress passed the Jobs and Growth Tax Relief Reconciliation Act of 2003 to improve economic growth. President George W. Bush planned to encourage savings and investment with tax reductions. Beginning in 2003, individual taxpayers and investors benefited from improvements to the plan.

History

The Economic Growth and Tax Relief Reconciliation Act of 2001 reduced individual income tax rates, removed high taxes for married couples and increased credits for children.

Significance

JGTRRA updated the plan for 2003. The economic stimulus accelerated income tax changes and added reductions in capital gains and dividends.

Current Taxes

Taxpayers pay income tax at lowered rates: 25 percent, 28 percent, 33 percent and 35 percent. For 2008, investors benefited from tax rates for capital gains and dividends from domestic corporations at 0 percent and 15 percent.

Tax Schedule

The lowered rates for individual earners end in 2011. For payment of the capital gains tax and dividends tax, tax year 2008 was the last year to benefit.

Future Rates

Income tax rates for individuals return to 28 percent, 31 percent, 36 percent and 39.6 percent in 2011. For 2009, tax rates for capital gains and dividends are 10 percent and 20 percent.

References

• Jobs & Growth Tax Relief Reconciliation Act of 2003 (May 28, 2003).
• Summary of Provisions Contained in the Conference Agreement for H.R. 1836, The Economic Growth and Tax Relief Reconciliation Act of 2001, JCX-50-01, Joint Committee on Taxation (May 26, 2001)
• Summary of Conference Agreement on H.R. 2, The "Jobs and Growth Tax Relief Reconciliation Act of 2003," JCX-54-03, Joint Committee on Taxation (May 22, 2003)