The bill we passed is too important

for making political capital. This is a worker's bill. It makes our tax

provisions competitive with other nations. Our workers are making the

same product and trying to sell it to the same customer, but our tax provisions

make them noncompetitive. This package will help change that.

Currently, we have the highest

capital gains rates in the world. We have the highest tax rates on stock

dividends. Unlike other countries, we have the Alternative Minimum Tax

which penalizes individuals as well as employers trying to create jobs.

We have depreciation schedules which cause business to carry assets on

their books which are now obsolete. Each of these provisions drives employers

out of the country, taking their jobs with them. Fixing these provisions

will help American workers compete and keep these jobs in this country.

Furthermore, this bill will

create more jobs and create them quickly. It is estimated that this bill

will create half-a-million new jobs this year and more than 700,000 next

year. This is good and necessary legislation that will benefit 92 million

taxpayers in this country and will help grow the American economy which

will benefit every American.

[Here are the] provisions of

H.R. 2, The Jobs and Growth Tax Act of 2003:

Acceleration of 2001 Bush

tax cuts for individuals

* Child credit. Increases child

credit to $1,000 for 2003, 2004, and 2005.

* 10 percent bracket. Accelerates

the expansion of the 10 percent bracket for 2003, 2004, and 2005.

* Marriage penalty relief.

Accelerates the expansion of the 15 percent bracket and the increase in

the standard deduction for married persons filing joint returns for 2003,

2004, and 2005.

* Individual rate cuts. Accelerate

the 2006 individual rate cut schedule to 2003. (Rates reduced from 28

percent to 25 percent; 31 percent to 28 percent; 36 percent to 33 percent

and 39.6 percent to 35 percent.)

*Increase individual AMT exemption

amount. Increases the AMT exemption amount by $7,500 for single persons

and $15,000 for joint filers for 2003, 2004 and 2005.

Business and investment

incentives

* Bonus depreciation. Increases

bonus depreciation from 30 percent to 50 percent and extend through Dec.

31, 2005.

* Small business expensing.

For 2003 through 2007, increases the amount the small businesses can expense

(immediately deduct) from $25,000 to $100,000. Increases definition of

small business from $200,000 of capital purchases to $400,000. Provisions

are indexed for inflation.

* Net operating loss carryback.

Extend the 5-year net operating loss carryback for three years (2003 through

2005) and hold taxpayers harmless for AMT.

Dividends and capital gains

* Dividend and capital gain

tax rate reduction 5/15. Reduces the tax rate on dividends and capital

gains to 5 percent for taxpayers in the lowest tax brackets and to 15

percent for all other taxpayers.