With a flourish and amidst much pomp and circumstance, President Bush signed his third tax cut bill into law this week, promising that the measure will strengthen the economy by ensuring American “have more to spend, to save, and invest.”

While Bush initially pushed for a much larger cut, deriding the $350 billion compromise agreed to by Congress as “itty bitty,” he said he now views it as an important step in effecting fundamental tax policy reform.

The package’s main focus is on lowering the capital gains tax rate and taxes on dividends, and also boosting the child tax credit. Many provisions, however, are set to expire within the next few years and could evaporate if Congress doesn’t step in at some point and make them permanent.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access