•
For 2003 and 2004 only, increases the taxable
income
levels of the 10-percent rate bracket so
income
levels scheduled for 2008 become
effective
in those years.
For 2003,
the 10-percent tax bracket increases from
$6,000 to
$7,000 for single taxpayers and from
$12,000 to
$14,000 for married taxpayers; for
2004,
these amounts are indexed for inflation.
•
For 2003 and thereafter, accelerates reductions
in regular
income tax rates slated for 2004 and 2006.
Regular
income tax rates in excess of 15 percent will
now be
25 percent, 28 percent, 33 percent, and 35
percent.
•
For 2003 and 2004 only, increases the alternative
minimum
tax exemption for married taxpayers
filing
jointly and surviving spouses to $58,000,
and for
unmarried taxpayers to $40,250.
GROWTH INCENTIVES FOR BUSINESS
First-year depreciation
•
Increases to 50 percent the additional first-year
depreciation
on the adjusted basis of qualified
property
(as defined for the 30-percent additional
deduction
in the Job Creation and Workers
Assistance
Act of 2002). Property must be
acquired
after May 5, 2003, and before
January 1,
2005.
Section 179 expensing
•
Increases the maximum dollar amount that may
be
deducted under Section 179 to $100,000 for
property
placed in service in taxable years
beginning
2003, 2004, and 2005.
•
For purposes of the phaseout of the $100,000
deductible
amount, increases the $200,000
amount of
Section 179 property at which the
phaseout
begins to $400,000 for property placed
in service
beginning in these years.
•
Indexes dollar limits annually for inflation for
these tax
years.
•
Includes off-the-shelf computer software placed in
service in
these taxable years as qualifying
property.
Tax rate reductions¡Xcapital gains and dividends
•
Reduces 10- and 20-percent tax rates on capital
gains to 5
(0, in 2008) and 15 percent, respectively.
Applies to
regular tax and alternative
minimum
tax, and to assets held more than
one year,
for sales/exchanges (and payments
received)
from May 6, 2003, through December
31, 2008.
•
Reduces the ordinary income tax rates on
dividends
received by individual shareholders
from
domestic and qualified foreign corporations
to 5 (0,
in 2008) and 15 percent. Applies to both
the
regular tax and alternative minimum tax, for
dividends
in taxable years beginning after 2002
and
through 2008.
Professional level integrated trading. Programmed and basket trading.
