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Fact Sheet on Congressional Tax Proposals in the 108th Congress, Date: August 4, 2003 1 (August 4, 2003)

handle is hein.tera/crstax0464 and id is 1 raw text is: Order Code RS21386 Updated August 4, 2003 CRS Report for Congress Received through the CRS Web Fact Sheet on Congressional Tax Proposals in the 108th Congress Jane G. Gravelle Senior Specialist in Economic Policy Government and Finance Division Summary In January, President Bush proposed an economic growth tax cut package that would have cost an estimated $726 billion for FY2003-FY2013, with $396 billion of the total resulting from a dividend relief proposal and the remainder primarily due to acceleration of future tax cuts enacted in 2001. The President signed H.R. 2, the Jobs and Growth Tax Relief and Reconciliation Act (JGTRRA) on May 28 (P.L. 108-27). While similar to the President's proposal, the new law differs in some important respects including the taxation of dividends and the timing and expiration of several provisions; it would cost $350 billion over 11 years. Beyond the comprehensive tax cuts, tax provisions have been considered on a variety of issues (some considered in the previous Congress): tax reductions to armed services personnel, tax incentives for charitable giving, pensions, energy taxation, export provisions and related taxation of corporations, and permanent estate tax repeal. This report will be regularly updated to reflect legislative developments. Economic Growth Package On May 23, both the House and Senate agreed to the conference report for H.R. 2, reconciling the differences between the House and Senate versions of the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA; P.L. 108-27). According to the Joint Committee on Taxation, the package is estimated to result in $350 billion in reduced revenues (and increased outlays) from FY2003 through FY2013. In contrast to the Senate proposal, which would have had the same net cost, the conference package did not include revenue raising measures, or offsets. The principal outlay in the package established a $20 billion fund to provide relief to state governments. The principal tax provisions include acceleration of individual income tax rate reductions previously scheduled to occur in 2004 and 2006, temporary acceleration in marriage penalty relief provisions (increase in the standard deduction for married couples and broadening of the 15% rate bracket), a temporary increase in the child tax credit from $600 to $1,000 for 2003 and 2004, temporary increase in the alternative minimum exemption amounts, increase and Congressional Research Service ** The Library of Congress

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