Jobs and Growth Tax Relief Reconciliation Act Essay Example

The Jobs and Growth Tax Relief Reconciliation Act of 2003 was passed by the United States Congress on May 23, 2003 and promptly signed into law by President Bush. This act included provisions that fast-tracked specific tax changes from the Economic Growth and Tax Relief Reconciliation Act of 2001. It also raised the exemption amount for the individual Alternative Minimum Tax, reduced taxes on income from dividends and capital gains (effective in 2005), and aimed to stimulate the economy while reducing unemployment. As a result, all dividends and corporate capital gains are now taxed as long-term capital gains at lower rates compared to previous legislation. Additionally, there was a significant increase in child credit from $600 to $1,000.

According to the Congressional Budget Office, government tax cuts would result in a $340 billion increase in budget deficits by 2008 (source: Jobs and Growth Tax Relief Reconciliation Act of 2003).