(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
JS-414
The maximum tax rate on dividends paid by corporations to individuals and on individualscapital gains is reduced to 15% in 2003 through 2008. For taxpayers in the 10% and 15% ordinary income tax rate brackets, the rate on dividends and capital gains is reduced to 5% in 2003 through 2007, and to zero in 2008. The new rates apply to capital gains realized on or after May 6, 2003, and to dividends received in 2003 and after.
This provision reduces the double taxation of corporate earnings. Taxes are reduced for 26 million taxpayers with income from dividends and capital gains by an average of $798.
Among those with tax cuts will be 7 million elderly taxpayers whose taxes will decline, on average, by $1,088.