Article: CAPITAL GAINS AND DIVIDEND TAX CUT FACT OF THE DAY #15: 2003 CAPITAL GAINS TAX CUT PAID FOR ITSELF, MORE

Americans for Tax Reform issued the following news release:

In 2003 President Bush signed into law the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA). The legislation cut income tax rates, reduced the capital gains tax rate by 25 percent and substantially reduced the double tax placed on dividends. Immediately following the tax cut, economic growth, job creation, stock prices, dividends, and personal income skyrocketed. The 2003 tax cut has been an unmitigated success and should be extended.

As occurred in 1997, the Congressional Budget Office and Joint Committee on Taxation grossly underestimated capital gains revenue following the tax cut. CBO forecasted after the tax cut was ...

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