Recently, Congress passed the “Jobs and Growth Tax Relief Reconciliation Act of 2003,” a tax cut that addresses a number of flaws in the current tax code. Importantly, the tax bill focused on incentives, with across-the-board tax cuts, reductions in the cost of capital, and changes in depreciation that would foster investment by small business. In addition, it sought to remove punitive elements of the code, such as double taxation and the marriage penalty. The bill that finally passed was less than half of what President Bush initially proposed. Using the deficit for leverage, the Senate capped the tax cut. Interestingly, they also added $20 billion in new spending to bail out debt-ridden states, which raises questions about whether they were concerned about the deficit or what was left for them to spend.