Accelerated tax rate cuts. Marriage penalty relief. An increased child tax credit. Dividend and capital gains tax reductions. Growth incentives for businesses. The Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “2003 Act”) promises to provide federal income-tax relief to nearly every individual and business taxpayer.

Economic stimulus and growth are the stated objectives of the 2003 Act. And, while the new law was the result of sometimes contentious negotiations (and, in fact, passed by only the narrowest of margins in the Senate), it will almost immediately put more money in the pockets of most individual taxpayers.

Most individuals with young children will see an immediate benefit in the form of a payment from the government, reflecting the new law’s increase in the child tax credit. And nearly every working person will see a reduction in the taxes withheld from her/his paycheck due to the speeding up of tax rate reductions enacted in 2001.

Investors and business taxpayers will benefit this year, as well. New lower rates on dividends and capital gains should be welcomed by investors battered by the stormy markets of recent years. And expanded write-offs for new asset purchases will favor businesses that spend on capital equipment acquisitions.

This explanation summarizes the new tax law and how its provisions might apply to your situation. Many of the new rules are complex, and most of the changes are temporary. We urge you to seek professional assistance before acting on anything you read in this summary. The new law presents numerous planning opportunities, and a professional can help you best take advantage of them.

CWEB-L-115