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Jobs And Growth Tax Relief Reconciliation Act of 2003 - JGTRRA

外汇网2021-06-22 10:38:51 73
A U.S. tax law, passed by Congress on May 23, 2003, that lowered the maximum inpidual income tax rate on corporate pidends to 15%. The act also reduced the long-term inpidual income tax rate on capital gains to 15%. The act was signed by President George W. Bush on May 28, 2003, and was intended to amplify the effects of the Economic Growth and Tax Relief Reconciliation Act of 2001.

The JGTRRA was put forward as part of an effort to jump-start the U.S. economy. The law significantly reduced the amount of tax paid by investors on pidends and capital gains. This development made it much more attractive for public companies to pay cash pidends to shareholders (instead of holding onto their cash and reinvesting it into expanded operations). Thus, after the enactment of the JGTRRA, the number of U.S. companies paying regular pidends increased substantially.

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