JGTRRAJobs and Growth Tax Relief Reconciliation Act of 2003
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The number of additional taxpayers that would be subject to the AMT in the years beyond 2013, absent legislative action, depends on whether the provisions of EGTRAA and JGTRRA are extended.
Two years later, a section 302 spending allocation of $350 billion, demanded by centrist legislators, would inspire congressional Republicans to sunset provisions in JGTRRA, thus enacting deeper tax cuts than would have been possible had the cuts been permanent.
Because the tax rates "flip-flopped" when JGTRRA 2003 was enacted, zero coupon bonds are now generally less attractive as a college savings vehicle than they were prior to JGTRRA.
JGTRRA 2003 attempted to mitigate this disparity, at least temporarily, in the lower brackets by setting the brackets of the married joint tax rates equal to twice that of single taxpayers for the initial two tax rate levels (10% and 15%).
JGTRRA lowered the dividend tax rate to 15 percent for American equities and extended this tax relief only to foreign corporations from a subset of countries.
Second, JGTRRA reduced the tax penalty for paying dividends relative to retained earnings, thereby increasing the incentive for firms to pay dividends.
However, under JGTRRA 2003, "qualified dividend income" (generally, dividends paid by domestic corporations and certain foreign corporations to shareholders) is treated as net capital gain and is, therefore, subject to lower tax rates.
However, under JGTRRA, the personal holding company tax was reduced and, for tax years beginning after 2002, the personal holding company tax is imposed at the rate of 15% of the undistributed personal holding company income, in addition to the regular corporate income tax and the minimum tax on certain tax preference items.
6%) and the top capital gain rate (20%) that existed before the 2003 tax law goes to 20% after the JGTRRA (35% vs.
Corporate receipts surged more than 40 percent, or $58 billion, reflecting the improvement in corporate profits; individual tax receipts--restrained by JGTRRA, which pulled forward reductions of personal tax rates that had been scheduled for the second half of the decade--rose only about 2 percent.
In the end, this proposal did not survive the legislative process, and the JGTRRA was enacted without revoking this longstanding tax benefit to U.
JGTRRA reduced the maximum individual rate on dividends to 15 percent through 2008.