Jobs and Growth Tax Relief Reconciliation Act Law and Legal Definition

The Jobs and Growth Tax Relief Reconciliation Act of 2003 brought changes to the then existing tax plans. The Act aims at improving the economy of the U.S by reducing the taxes collected and giving the population more money.

The provisions of the Act provide tax relief to individuals, investors, and businesses. The provisions of the Act provide:

1. for accelerated expansion of the 10% tax bracket;

2. for accelerated reduction of individual income tax brackets above 15%;

3. for accelerated increase in the child credit;

4. for eliminating marriage penalty;

5. for increasing the Alternate minimum tax exemption amount for individuals;

6. for adjusting the withholding tables.;

7. for long-term capital gains tax rates reduced to 5% and 15%;

8. for a tax rate on non corporate taxpayers' dividend income cut to 5% and 15%.

9. for expanding expensing election for businesses;

10. for liberalizing bonus for first-year depreciation allowance liberalized;

11. for accumulated earnings tax and personal holding company tax rates reduced to 15%; and

12. for Collapsible corporation rules repealed.