Hulshof Supports Package to Create Jobs and Economic Growth
WASHINGTON, D.C. - - U.S. Congressman Kenny Hulshof (R-MO) today voted in support of H.R. 2, the Jobs and Growth Tax Act of 2003. The legislation provides much-needed tax relief to individuals and businesses to help create jobs today, while generating long-term economic growth for the future. The U.S. House passed the bill by a 222-203 margin.
"Some have said a growth package is unnecessary. I respectfully disagree. Missouri led the nation last year in job loss at 77,700. People want a paycheck, not an unemployment check. If signed into law, by the end of 2004, this plan will create more than one million new jobs and inject $200 billion into the economy to help drive consumer spending and job creation," said Hulshof.
The Jobs and Growth Tax Reconciliation Act of 2003 contains the following provisions:
Acceleration of 2001 Bush Tax Cuts for Individuals
- Increases child credit to $1,000 for 2003 - 2005.
- Accelerates the expansion of the 10 percent bracket for 2003 - 2005.
- Accelerates the expansion of the 15 percent bracket and the increase in the standard deduction for married persons filing joint returns for 2003 - 2005.
- Accelerate the 2006 individual rate cut schedule to 2003. (Rates reduced from 28% to 25%; 31% to 28%; 36% to 33% and 39.6% to 35%.)
- Increases the AMT exemption amount by $7,500 for single persons and $15,000 for joint filers for 2003 - 2005.
Business and investment incentives
- Increases bonus depreciation from 30 percent to 50 percent and extend through December 31, 2005.
- For 2003 through 2007, increases the amount the small businesses can expense (immediately deduct) from $25,000 to $100,000. Increases definition of small business from $200,000 of capital purchases to $400,000. Provisions are indexed for inflation.
- Extend the 5-year net operating loss carryback for three years (2003 through 2005) and hold taxpayers harmless for AMT.
Dividends and capital gains
- Reduces the tax rate on dividends and capital gains to 5 percent for taxpayers in the lowest tax brackets and to 15 percent for all other taxpayers.
"We support Congressman Hulshof's vote to put Missourians back to work," said Daniel P. Mehan, president and CEO of the Missouri Chamber of Commerce and Industry. "Last year nearly 80,000 Missourians had to go home and tell their families they didn't have a job any longer. There is a human cost to a struggling economy, and we are encouraged that our representatives in Congress understand that cost, and are making moves to address it," Mehan concluded.
"This growth package is the right medicine for what ails our economy. Putting more money in the hands of taxpayers will boost consumer confidence. Small businesses - the engines of economic growth - will have more money to expand and grow their operations. By reducing the tax on dividends and capital gains, we are increasing the capital available for job creation in a manner that encourages long-term economic growth. This is a balanced package that properly addresses the challenges facing our economy," concluded Hulshof.
As a member of the U.S. House Committee on Ways and Means, Congressman Hulshof was directly involved in crafting the economic growth initiative approved by the U.S. House. The U.S. Senate is expected to consider its own version of economic growth legislation in the near future.
