Federal tax cuts

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Recent economic indicators show the U.S. economy is improving, in part due to Bush's tax plan. New figures released Dec. 5 show 57,000 new jobs were created in November and 328,000 jobs have been added over the last four months the most robust four-month job growth recorded in nearly three years. Additionally, the unemployment rate has dropped to 5.9 percent.|ret||ret||tab|

But maybe the strongest economic indicator is the 8.2 percent growth the gross domestic product experienced in the third quarter 2003. America's economy has not grown at a rate that strong in 20 years 2003, the Commerce Department reported.|ret||ret||tab|

Goals set forth by Bush through the tax plan include:|ret||ret||tab|

create more than 1 million jobs by the end of 2004;|ret||ret||tab|

pump $200 billion into the economy;|ret||ret||tab|

reduce taxes by $1,126 on average to 91 million taxpayers; and|ret||ret||tab|

provide tax relief of $2,209 on average to 23 million small-business owners.|ret||ret||tab|

The tax plan's highlights for businesses include:|ret||ret||tab|

Expense allowance (Section 179): raises deductions from $25,000 to $100,000 on purchases of tangible personal property; expires in 2005.|ret||ret||tab|

Bonus depreciation: allows businesses to deduct 50 percent of property purchased beyond $100,000 of the expense allowance; expires in 2004.|ret||ret||tab|

Net operating loss carryback: extends the five-year net operating loss carryback for three years; expires in 2005.|ret||ret||tab|

Capital gains and dividends: reduces tax rates to 5 percent for taxpayers in the lowest brackets and 15 percent for all other taxpayers; also eliminates double taxation on corporate dividends; expires in 2008.|ret||ret||tab|

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