Number: RS21708
Title: Jobs and Growth Tax Relief Reconciliation Act: Provisions Expiring in 2004
Authors: Gregg Esenwein, Government and Finance Division 
Abstract: The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA; P.L. 108-27) accelerated the implementation of certain tax reductions that were originally enacted as part of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA; P.L. 107-16). The 2003 act reduced marginal income tax rates effective through 2010 and reduced taxes on dividend and capital gains income effective through the end of 2008. Several of these provisions will expire at the end of 2004, including the increase in the child tax credit, the expansion of the 10% tax bracket, the expansion of the 15% tax bracket and standard deduction for joint returns, the increase in the alternative minimum tax (AMT) exemption, and the tax incentives for business. During this session, Congress faces the issue of whether to extend and/or make permanent these expiring tax provisions. To date, the House has passed four major tax bills. H.R. 4181 would extend and make permanent marriage tax penalty relief; H.R. 4275 would extend and make permanent the 10% tax bracket; H.R. 4359 would extend and make permanent the increase in the child tax credit; and H.R. 4227 would extend the increase in the AMT exemption through 2005. These changes would reduce revenue by $568 billion over the FY2005-FY2014 period. If the increase in the AMT exemption were made permanent, then the total cost over the period could exceed $1 trillion. Congress is currently considering going to conference on a child tax credit refundability bill (H.R. 1308) that was passed last year, and using the conference agreement as a vehicle for extending these four JGTRRA tax provisions.
Pages: 5
Date: July 15, 2004