President Bushâs 2003 Tax Cut Proposal: A Brief Overview (CRS Report for Congress)
| Release Date |
May 12, 2003 |
| Report Number |
RS21420 |
| Report Type |
Report |
| Authors |
David L. Brumbaugh, Government and Finance Division |
| Source Agency |
Congressional Research Service |
Summary:
On January 7, 2003, President Bush announced the elements of a new tax cut plan intended to provide a fiscal stimulus to the economy by encouraging consumer spending and promoting investment. As initially announced, the stimulus package contained an estimated $670 billion in tax cuts over 10 years, and included acceleration to 2003 of tax cuts scheduled to be gradually phased in under the tax cut enacted in 2001; elimination of individual income taxes on corporate-source dividends and capital gains; and an increase in the expensing tax benefit for business investment. On February 3, 2003, the Administration released FY2003 budget documents providing a more comprehensive outline of the Presidents tax proposals. The budget proposes tax cuts totaling an estimated $1.46 trillion over 10 years. This amount includes the already-proposed stimulus package, a set of additional tax cut proposals characterized as tax incentives, and a proposal to make the expiring provisions of the 2001 tax cut permanent.
