Jobs and Growth Tax Relief Reconciliation Act of 2003

2025-10-16T19:42:57Z

240A:61:F6:BD0A:7482:BDFF:FE88:F414: /* External links */ * Republicanism in the United Kingdom - The king or the queen and royalty are pitiful for being forced to live without human rights. to be abolished. *[http://www.republic.org.uk Republic]

{{Short description|"JGTRRA"}}
{{Use American English|date=June 2025}}
{{Infobox U.S. legislation
| name= Jobs and Growth Tax Relief Reconciliation Act of 2003
| fullname= An act to provide for reconciliation pursuant to section 201 of the concurrent resolution on the budget for fiscal year 2004.
| acronym= JGTRRA
| enacted by= 108th
| effective date=
| public law url=
| cite public law= {{USPL|108|27}}
| cite statutes at large= {{USStat|117|752}}
| acts amended=
| title amended=
| sections created=
| sections amended=
| leghisturl= http://thomas.loc.gov/cgi-bin/bdquery/z?d108:HR00002:@@@S
| introducedin= [[United States House of Representatives|House]]
| introducedbill= {{USBill|108|HR|2}}
| introducedby= [[Bill Thomas]] ([[Republican Party (United States)|R]]-[[California|CA]])
| introduceddate= February 27, 2003
| committees= [[United States House Committee on Ways and Means|House Ways and Means]]
| passedbody1= [[United States House of Representatives|House]]
| passeddate1= May 9, 2003
| passedvote1= [http://clerk.house.gov/evs/2003/roll182.xml 222–203]
| passedbody2= [[United States Senate|Senate]]
| passeddate2= May 15, 2003
| passedvote2= [https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=108&session=1&vote=00179 51-49]
| conferencedate= May 23, 2003
| passedbody3= [[United States House of Representatives|House]]
| passeddate3= May 23, 2003
| passedvote3= [http://clerk.house.gov/evs/2003/roll225.xml 231–200]
| passedbody4= [[United States Senate|Senate]]
| passeddate4= May 23, 2003
| passedvote4= [https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=108&session=1&vote=00196 50–50, the Vice President voted in the Affirmative]
| signedpresident= [[George W. Bush]]
| signeddate= May 28, 2003
| amendments= [[Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010]]
}}

The '''Jobs and Growth Tax Relief Reconciliation Act of 2003''' ("'''JGTRRA'''", {{USPL|108|27}}, {{USStat|117|752}}), was passed by the [[United States Congress]] on May 23, 2003, and signed into law by [[President of the United States|President]] [[George W. Bush]] on May 28, 2003. Nearly all of the cuts (individual rates, capital gains, dividends, estate tax) were set to expire after 2010.<ref>{{cite web | url=http://www.cato.org/pub_display.php?pub_id=6621 | title=Tax Policy Under President Bush | publisher=Cato Institute}}</ref>

Among other provisions, the act accelerated certain tax changes passed in the [[Economic Growth and Tax Relief Reconciliation Act of 2001]], increased the exemption amount for the individual [[Alternative Minimum Tax]], and lowered taxes of [[income]] from [[dividend]]s and [[capital gain]]s. The 2001 and 2003 acts are known together as the "[[Bush tax cuts]]".

==Description of cuts==

The JGTRRA continued on the precedent established by the 2001 EGTRRA, while increasing tax reductions on investment income from [[dividend]]s and [[capital gain]]s.

===Accelerated credits and rate reductions===

The JGTRRA accelerated the gradual rate reduction and increase in credits passed in the EGTRRA. The maximum tax rate decreases originally scheduled to be phased into effect in 2006 under the EGTRRA were retroactively enacted to apply to the 2003 tax year. Also, the child tax credit was increased to what would have been the 2010 level, and "[[marriage penalty]]" relief was accelerated to 2009 levels. In addition, the threshold at which the [[alternative minimum tax]] applies was also increased.

===Investments===

The JGTRRA increased both the percentage rate at which items can be [[depreciation|depreciated]] and the amount a taxpayer may choose to expense under [[Section 179]], allowing them to deduct the full cost of the item from their income without having to depreciate the amount.

In addition, the [[capital gains tax in the United States|capital gains tax]] decreased from rates of 8%, 10%, and 20% to 5% and 15%. Capital gains taxes for those currently paying 5% (in this instance, those in the 10% and 15% income tax brackets) are scheduled to be eliminated in 2008. However, capital gains taxes remain at the regular income tax rate for property held less than one year.

Certain categories, such as collectibles, remained taxed at existing rates, with a 28% cap. In addition, taxes on "[[qualified dividend]]s" were reduced to the capital gains levels. "[[Qualified dividend]]s" includes most income from non-foreign corporations, [[real estate investment trust]]s, and [[credit union]] and [[bank]] "dividends" that are nominally [[interest]].

==Legislative history==

Final House vote:
{| class=wikitable
! Vote by Party
! colspan=2 | Yea
! colspan=2 | Nay
|-
| Republicans
| align="right" | 224
| aleign="right" | 99.6%
| align="right" | 1
| align="right" | 0.4%
|-
| Democrats
| align="right" | 7
| align="right" | 3.4%
| align="right" | 198
| align="right" | 96.6%
|-
| Independents
| align="right" | 0
| align="right" | 0.0%

| align="right" | 1
| align="right" | 100%
|-
! Total
! 231
! 53.6%
! 200
! 46.4%
|-
| Not voting
| align=right | 4
|
| align=right | 0
|
|}

Final Senate vote:
{| class=wikitable
! Vote by party
! Yea
! Nay
|-
| Republicans
| align="right" | 48
| align="right" | 3
|-
| Democrats
| align="right" | 2
| align="right" | 46
|-
| Independents
| align="right" | 0
| align="right" | 1
|-
! Total
! 50
! 50
|-
| colspan=3 | Vice President Dick Cheney (R): Yea
|}

==Tax bracket comparison==
The tax cuts enacted by this legislation were retroactive to January 1, 2003, and first applied to taxes filed for the 2003 tax year. These individual rate reductions were scheduled to sunset on January 1, 2011, along with the Economic Growth and Tax Relief Reconciliation Act of 2001 unless further legislation was enacted to extend or make permanent its changes.<ref>{{cite web | title=What the Bush Tax Cut Means for You | last=Bischoff | first=Bill | date=2003-05-27 | access-date=2008-10-07 | publisher=SmartMoney | work=smartmoney.com | url=http://www.smartmoney.com/tax-advice/index.cfm?story=20030527}}</ref> This comparison shows how the ordinary taxable income brackets for each [[Filing Status (federal income tax)|filing status]] were changed.

===Single===
{| class=wikitable
| colspan="2" align="center" | '''Tax Year 2002'''<ref name="2002-1040i">{{cite web | title=2002 1040 Instructions | publisher=United States Internal Revenue Service | work=IRS.gov | url=https://www.irs.gov/pub/irs-prior/i1040--2002.pdf | pages=75 | access-date=2008-10-07}}</ref>
| colspan="2" align="center" | '''Tax Year 2003'''<ref name="2003-1040i">{{cite web | title=2003 1040 Instructions | publisher=United States Internal Revenue Service | work=IRS.gov | url=https://www.irs.gov/pub/irs-prior/i1040--2003.pdf | pages=74 | access-date=2008-10-07}}</ref>
|-
! Income level
! Tax rate
! Income level
! Tax rate
|-
| up to $6,000
| align="right" | 10%
| up to $7,000
| align="right" | 10%
|-
| $6,000 - $27,950
| align="right" | 15%
| $7,000 - $28,400
| align="right" | 15%
|-
| $27,950 - $67,700
| align="right" | 27%
| $28,400 - $68,800
| align="right" | 25%
|-
| $67,700 - $141,250
| align="right" | 30%
| $68,800 - $143,500
| align="right" | 28%
|-
| $141,250 - $307,050
| align="right" | 35%
| $143,500 - $311,950
| align="right" | 33%
|-
| over $307,050
| align="right" | 38.6%
| over $311,950
| align="right" | 35%
|}

===Married filing jointly or qualifying widow or widower===
{| class=wikitable
| colspan="2" align="center" | '''Tax Year 2002'''<ref name="2002-1040i"/>
| colspan="2" align="center" | '''Tax Year 2003'''<ref name="2003-1040i"/>
|-
! Income level
! Tax rate
! Income level
! Tax rate
|-
| up to $12,000
| align="right" | 10%
| up to $14,000
| align="right" | 10%
|-
| $12,000 - $46,700
| align="right" | 15%
| $14,000 - $56,800
| align="right" | 15%
|-
| $46,700 - $112,850
| align="right" | 27%
| $56,800 - $114,650
| align="right" | 25%
|-
| $112,850 - $171,950
| align="right" | 30%
| $114,650 - $174,700
| align="right" | 28%
|-
| $171,950 - $307,050
| align="right" | 35%
| $174,700 - $311,950
| align="right" | 33%
|-
| over $307,050
| align="right" | 38.6%
| over $311,950
| align="right" | 35%
|}

===Married filing separately===
{| class=wikitable
| colspan="2" align="center" | '''Tax Year 2002'''<ref name="2002-1040i"/>
| colspan="2" align="center" | '''Tax Year 2003'''<ref name="2003-1040i"/>
|-
! Income level
! Tax rate
! Income level
! Tax rate
|-
| up to $6,000
| align="right" | 10%
| up to $7,000
| align="right" | 10%
|-
| $6,000 - $23,350
| align="right" | 15%
| $7,000 - $28,400
| align="right" | 15%
|-
| $23,350 - $56,425
| align="right" | 27%
| $28,400 - $57,325
| align="right" | 25%
|-
| $56,425 - $85,975
| align="right" | 30%
| $57,325 - $87,350
| align="right" | 28%
|-
| $85,975 - $153,525
| align="right" | 35%
| $87,350 - $155,975
| align="right" | 33%
|-
| over $153,525
| align="right" | 38.6%
| over $155,975
| align="right" | 35%
|}

===Head of household===
{| class=wikitable
| colspan="2" align="center" | '''Tax Year 2002'''<ref name="2002-1040i"/>
| colspan="2" align="center" | '''Tax Year 2003'''<ref name="2003-1040i"/>
|-
! Income level
! Tax rate
! Income level
! Tax rate
|-
| up to $10,000
| align="right" | 10%
| up to $10,000
| align="right" | 10%
|-
| $10,000 - $37,450
| align="right" | 15%
| $10,000 - $38,050
| align="right" | 15%
|-
| $37,450 - $96,700
| align="right" | 27%
| $38,050 - $98,250
| align="right" | 25%
|-
| $96,700 - $156,600
| align="right" | 30%
| $98,250 - $159,100
| align="right" | 28%
|-
| $156,600 - $307,050
| align="right" | 35%
| $159,100 - $311,950
| align="right" | 33%
|-
| over $307,050
| align="right" | 38.6%
| over $311,950
| align="right" | 35%
|}

==See also==
* [[Taxation in the United States]]
* [[Starve the beast]] – Post 1970s taxation/budget policy

==References==
{{reflist}}

==External links==
{{wikisource|US Public Law 108-27}}
* [https://www.scribd.com/doc/24597313/PL-108-27-Jobs-and-Growth-Tax-Relief-Reconciliation-Act-of-2003 Full text of the Act]
* [https://web.archive.org/web/20090326040406/http://www.natptax.com/taxact2003.pdf Summary of the Act(pdf file)]
* [https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=108&session=1&vote=00196 Senate Roll Call Vote – Jobs and Growth Tax Relief Reconciliation Act]
* [https://georgewbush-whitehouse.archives.gov/news/reports/taxplan.html The President's Agenda for Tax Relief]
* [http://www.cbo.gov/showdoc.cfm?index=5746 Effective Federal Tax Rates Under Current Law, 2001 to 2014]
*[http://web.utk.edu/~jwachowi/hr2.html Special Report: Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA)], Prof. John Wachowicz at the [[University of Tennessee]]
* [[Republicanism in the United Kingdom]] - The king or the queen and royalty are pitiful for being forced to live without human rights. The monarchy has to be abolished.
*[http://www.republic.org.uk Republic]
{{Presidency of George W. Bush}}
{{US tax acts}}

[[Category:United States federal taxation legislation]]
[[Category:Acts of the 108th United States Congress]]
[[Category:United States fiscal cliff]]

Vero - Wikipedia - User contributions [en]

Jobs and Growth Tax Relief Reconciliation Act of 2003