Washington (May 29, 2003) -- President Bush signed a $350 billion tax-cut bill into law during an elaborate White House ceremony Wednesday, marking the third time he has slashed taxes during his administration in an effort to boost the economy.
“Today we are taking essential action to strengthen the American economy … (that) will deliver substantial tax relief to 136 million American taxpayers,” Bush said before signing the measure. “By ensuring that Americans have more to spend, to save and to invest, this legislation is adding fuel to an economic recovery,” he said.
While Bush initially pushed for a much larger cut of $750 billion and derided the compromise $350 billion size as "little bitty," he said he now views it as an important step in effecting fundamental tax policy changes.
The latest tax cut package focuses on lowering the top rate on dividends and capital gains, and includes $20 billion for U.S. states and tax breaks for businesses. Middle income families will also start receiving "child credit" checks of up to $400 per child starting this summer.
Many provisions of the bill are scheduled to expire over time, and could evaporate if Congress does not eventually make them permanent.
-- WebCPA staff
