Snapshot Of The Tax Cut
May 28, 2003, President Bush signed the Jobs and Growth Tax Reconciliation Act of 2003 to provide substantial tax relief to 136 million American taxpayers in an effort to create jobs and grow the economy. In this year alone $109 billion in tax relief will be provided to American people. Over the next ten years the costs are estimated to comprise only 1.18 percent of total revenues received by federal government.
|
Tax Relief Revisions |
Sunset Date |
Tax Relief 2003 |
Budgetary Costs |
|
(expiration) |
(millions) |
(as a percentage of total revenues) |
|
|
Child credit adjustment |
1-Jan-05 |
16,000 |
|
|
Marriage penalty relief 1 – |
Jan-05 |
19,000 |
|
|
Individual income tax rate* |
1-Jan-05 |
43,000 |
0.58% |
|
Depreciation allowance |
1-Jan-05 |
20,000 |
|
|
Small business expensing |
1-Jan-05 |
3,000 |
0.03% |
|
Individual capital gains rates |
1-Jan-09 |
||
|
Dividend tax relief |
1-Jan-09 |
8,000 |
0.50% |
|
Total: |
109,000 |
1.11% |
|
|
* encompasses the accelerated 10% bracket expansion, reduction in income tax rates, and AMT Hold-Harmless Relief |
Budgetary Impact in Perspective
The impact of the multidimensional tax cut on future budget deficits is a small one as it is projected that the federal government will collect over $29.6 trillion dollars in revenues over the next ten years; the total costs or budgetary impact of the tax plan will be slightly above $349 billion, 1.18 percent of future receipts projected over the next ten years.
|
2003-2013 |
estimates |
notes |
|
(millions) |
||
|
Total budgetary impact |
349,667 |
estimated net increase in budged deficit |
|
Projected total revenues |
29,658,000 |
projected rise in federal tax receipts |
|
Projected total federal outlays |
29,507,000 |
projected rise in government expenditures |
|
Projected GDP |
155,122,000 |
projected rise in total GDP |
|
Budget impact as a percentage of GDP |
0.23% |
the net increase in budget deficit is minimal when compared to the rise in GDP |
|
Budget impact as a percentage of projected total revenues |
1.18% |
the net increase in budget deficit is insignificant when compared to the total rise in tax receipts |
|
Budget impact as a percentage of projected total federal outlays |
1.19% |
the net increase in budge deficit is an insignificant amount when compared to the total rise in government spending |
