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2003 Jobs and Growth Tax Relief Reconciliation Act

SUMMARY:

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. Like the tax cut package passed in 2001, these cuts were scheduled to expire in December 2010. Unlike the previous tax cut legislation, this bill received support from very Democrats; the bill passed in the Senate when Vice President Dick Cheney cast a tie-breaking vote.

DESCRIPTION:

The context for this, the second President George W. Bush's tax cuts, was much different from the first round in 2001. By 2003, the economy of the United States had fallen into recession following the end of the late-1990s technology boom and in the wake of the terrorist attacks of September 2001. Moreover, the United States was waging war in both Afghanistan and Iraq. Even though with the growth of the federal budget deficit, President Bush proposed a new round of tax cuts which would extend some of the 2001 cuts set to expire and expand other cuts.

The final bill, which was passed through the process of reconciliation, provided for at least $350 billion in tax cuts. Although some cuts were addressed to middle-class Americans, such as the increase in the child tax credit, most of the cuts benefited the wealthiest Americans. For example, taxes dividends and capital gains were lowered substantially and the tax rates in the highest brackets were lowered more quickly than was originally set by the 2001 tax legislation. Corporations also benefited from tax cuts.

The legislation was signed into law by President Bush on May 28, 2003. This legislation and the Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub. Law No.: 107-16) are known collectively as the "Bush Tax Cuts."

FURTHER INFORMATION:

Jobs and Growth Tax Relief Reconciliation Act of 2003 (Pub. Law No.: 108-27). http://www.gpo.gov/fdsys/pkg/BILLS-108hr2enr/pdf/BILLS-108hr2enr.pdf

"Budget Resolution, Fiscal Year 2004." In Congress and the Nation, 2001-2004, vol. 11, 66. Washington, DC: CQ Press, 2006. http://library.cqpress.com/catn/catn01-426-18052-964132.

"Tax Cut Extensions, 2003-2004 Legislative Chronology." In Congress and the Nation, 2001-2004, vol. 11, 112. Washington, DC: CQ Press, 2006. http://library.cqpress.com/catn/catn01-426-18052-964254.

"Tax Cuts, 2003-2004 Legislative Chronology." In Congress and the Nation, 2001-2004, vol. 11, 105. Washington, DC: CQ Press, 2006. http://library.cqpress.com/catn/catn01-426-18052-964236.

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