President Bush signs tax relief bill in June to spur economic growth. (Washington Alert).In June, President Bush signed into law the "The Jobs and Growth Tax Act of 2003." Supporters hope the law will stimulate the economy by increasing people's take home pay and spur investment in the business community. Included in this package are deductions for businesses to purchase new equipment and tax withholding Withholding Any tax that is taken directly out of an individual's wages or other income before he or she receives the funds. Notes: In other words, these funds are "withheld" from your wages. changes. These withholding changes alone are expected to reduce workers taxes and put $22 billion into the economy this year and $35 billion next year. The Internal Revenue Service and Treasury have made available the new lower tax withholding tables. The new withholding tables will tell employers and payroll administrators how much less in federal income taxes to withhold with·hold v. with·held , with·hold·ing, with·holds v.tr. 1. To keep in check; restrain. 2. To refrain from giving, granting, or permitting. See Synonyms at keep. 3. from workers' wages. Effective immediately, employers should begin using the revised tables for wages paid through 2004. A copy of the revised tables can be found at: www.treas.gov/press/releases/reports/withholdingtable.pdf. Printed copies of Publication 15-T, containing all the withholding tables, will be mailed to all employers nationwide by the third week in June. The following key provisions allow businesses to deduct de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from their taxes half of the cost of investing in new equipment in the first year of purchase. These provisions make it more affordable for companies to invest in capital and jobs. Bonus Depreciation--Increase bonus depreciation from 30% to 50% and extend through December 31, 2005. Small Business Expensing--For 2003-07, increase the amount small businesses can expense (immediately deduct) from $25,000 to $100,000. Increase definition of small business from $200,000 of capital purchases to $400,000. Provisions are indexed for inflation. Net Operating Loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. Carry-Back--Extend the five-year net operating loss carry-back for three years (2003 through 2005) and hold taxpayers harmless The term harmless may be taken in several ways:
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