American Machinist

Tax cut provides vital boost to manufacturing. (Government Matters).

CONGRESS HAS ENACTED A powerful new package of tax cuts that will stimulate short-term economic recovery and long-term economic growth.

Led by House Ways & Means Committee Chairman Bill Thomas (R,Calif.) and Senate Finance Committee Chairman Chuck Grassley (R,Iowa), Congress has passed (by a 231-200 vote in the House and a 51-50 vote in the Senate) President Bush's $350 billion, 10-year jobs-and-economic-growth tax cut that includes increasing last year's 30% expensing allowance to 50% and extending it through 2004; quadrupling the $25,000 small-business expensing allowance (Sec. 179) through 2005; cutting the individual tax rate for dividends and capital gains to 15% (5% for low brackets); and advancing the effective dates of the 2001 individual rate cuts and credits to 2003 (thus providing an immediate 35% top tax rate for s-corporation shareholders). …

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