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July 4 is a time when we in this country celebrate our independence. We have a lot for which to be thankful. We can worship (or not) as we please, offer any political opinion (or none) -- in other words, we have choices. And on this Independence Day, let's celebrate our similarities and our differences, and be respectful of both.
Let's also celebrate the new law of the land. On May 28, 2003, President George W. Bush signed into law the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Many cuts originally included in the 2001 Bush Tax Cut legislation were accelerated and will now become effective retroactively to January 1, 2003. Some of the provisions incorporated into the bill include lower individual tax rates, expansion of the 10 percent tax bracket, marriage-penalty relief, and an increased child credit. Provisions affecting investors and tax breaks for businesses were also addressed in the bill. We should all see the effects of these tax changes starting July.
Unlike the tax cut of 2001, we won't be receiving a check in the mail. You will have less money withheld from your paycheck (and more money in your pocket) going forward, but you'll have to file for your first half of the year retroactive tax cuts when you file by next April 15.
Will that make a difference in the way the economy and the stock market responds to such fiscal stimulus? With the lower capital gains and dividend tax rates, should we change the way we invest? Does it still make sense to save in an IRA? Will the tax cuts spur business spending? These and other issues will be discussed with Robert Brusca this Friday night on this week's show. I hope you'll join us.
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