2003 Bush Tax Cuts

About 2003 Bush Tax Cuts

The Jobs and Growth Tax Relief Reconciliation Act of 2003 lowered capital gains taxes from 20 to 15 percent and dividend taxes from ordinary income rates to 15 percent. The cuts were designed to stimulate investment and economic growth. Supporters argued they boosted the stock market and job creation. Critics argued they increased inequality and the deficit. The tax cuts contributed to a housing and credit boom. They were made permanent for most income levels in 2012. The preferential rates for capital gains and dividends remained a defining feature of US tax policy, benefiting wealthy investors disproportionately.