FROM THE OFFICE OF PUBLIC AFFAIRS

In 2003, 91 million taxpayers will receive, on average, a tax cut of $1,126 under the Jobs and Growth Act of 2003. 

• 68 million women will see their taxes decline, on average, by $1,338.
• 45 million married couples will receive average tax cuts of $1,786.
• 34 million families with children will benefit from an average tax cut of $1,549.
• 6 million single women with children will receive an average tax cut of $558.
• 12 million elderly taxpayers will receive an average tax cut of $1,401.
• 23 million small business owners will receive tax cuts averaging $2,209.
• 3 million individuals and families will have their income tax liability completely eliminated by the Act.

Each of the provisions in the Jobs and Growth Act of 2003 will benefit millions of taxpayers.
• Accelerating the 2004 and 2006 rate cuts in 2003 will provide 32 million taxpayers with an average tax cut of $1,060.
• Accelerating the expansion of the 10 percent rate bracket will reduce taxes for 69 million taxpayers, on average, by $76.
• Enacting marriage penalty relief in 2003 will reduce taxes for 34 million married couples by an average of $589.
• Increasing the child tax credit to $1,000 in 2003 will provide 26 million families with an average tax cut of $623.
• Lowering the tax rates on capital gains and dividend income will reduce taxes for 26 million taxpayers with income from these two sources by an average of $798.   Among those with tax cuts will be 7 million elderly taxpayers whose taxes will decline, on average, by $1,088.

Background

This analysis is based on the following provisions:
• Acceleration of the 2004 and 2006 rate cuts to 2003.
• Reduction in marriage penalties through the acceleration of increases in the standard deduction from 2009 to 2003 and the width of the 15 percent rate bracket for joint filers from 2008 to 2003.
• Acceleration of the increase in the width of the 10 percent rate bracket for single and joint filers from 2008 to 2003.
• Acceleration of the increase to $1,000 in the child tax credit from 2010 to 2003 (except for advanced rebate). 
• Lowering the tax rate on dividends and capital gains to 15 percent (5 percent for the lowest two rate brackets).
• An increase in the alternative minimum tax (AMT) exemption level.
• 
The analysis above does not include the effects of two business provisions in the Act:
• Small businesses will benefit from an increase in the maximum amount of investment in equipment that they can expense from $25,000 to $100,000.
• Businesses will benefit from an increase in the first-year bonus depreciation deduction from 30 percent to 50 percent for qualified investments.
       

Office of Tax Policy
         May 22, 2003