DEFINITION of 'Jobs And Growth Tax Relief Reconciliation Act of 2003 - JGTRRA'

A U.S. tax law, passed by Congress on May 23, 2003, that lowered the maximum individual income tax rate on corporate dividends to 15%. The act also reduced the long-term individual income tax rate on capital gains to 15%. The act was signed by President George W. Bush on May 28, 2003, and was intended to amplify the effects of the

Economic Growth and Tax Relief Reconciliation Act of 2001.

BREAKING DOWN 'Jobs And Growth Tax Relief Reconciliation Act of 2003 - JGTRRA'

The JGTRRA was put forward as part of an effort to jump-start the U.S. economy. The law significantly reduced the amount of tax paid by investors on dividends and capital gains. This development made it much more attractive for public companies to pay cash dividends to shareholders (instead of holding onto their cash and reinvesting it into expanded operations). Thus, after the enactment of the JGTRRA, the number of U.S. companies paying regular dividends increased substantially.

  1. Jobs And Growth Tax Relief Reconciliation ...

    An act passed by congress that was intended to improve the economy ...
  2. Tax Reform Act Of 1986

    A law passed by the United States Congress to simplify the income ...
  3. Effective Tax Rate

    The average rate at which an individual or corporation is taxed. ...
  4. Tax Rate

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  5. Dividend Exclusion

    A rule that allows corporations to subtract dividends received ...
  6. Qualified Dividend

    A type of dividend to which capital gains tax rates are applied. ...
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  1. If I reinvest my dividends, are they still taxable?

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  2. Why do some companies pay a dividend, while other companies do not?

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