Changes have been consistently made to the federal tax policies throughout the years. This can be very confusing to those who have to fill out the taxes every year.

The tax relief reconciliation act of 2003 made some significant changes to the federal policy when President Bush passed the act. The main result of this act was that the taxes individuals paid were reduced.

At this time, the Alternative Minimum Tax exemption amount was raised. At the time this change to the tax law was very controversial.

The tax brackets that were developed as a result of the very reconciliation act were the main point fueling the controversy. These brackets separated the population by their income.

Those who filed as single with an income under $27,000 and those who filed jointly with an income under $46,000 would not have any changes made to their brackets. Meanwhile, people who made more than these amounts would receive a tax decrease of two percent.

In addition, people who made more than $300,000 every year received a tax decrease of 3.6%. This was huge benefit for some of the families who received such a break.

For example, a couple who earned $80,000 every year would get a return of $1600 more yearly. In comparison, a couple who made $300,000 every year would receive a return of $11,000 in addition to their previous return.

Many people were pleased with this plan because of the tax breaks they were eligible to receive. However, many people were also disappointed because they had to be able to earn enough money in order to get money back.

The biggest controversy surrounding this tax relief reconciliation act was that the poor lower class, who earns the least, would be receiving no additional benefit. To most of the nation, this seemed simply unfair.

In addition, this act placed extra tax relief on taxes paid on capital gains. Before the act was set in motion, the rates on capital gains were set at eight, ten, and twenty percent.

Following the reconciliation act, the rates were set at zero, five, and daily cialis dose fifteen percent. However, there were some restrictions as to who could collect on these new rates.

For example, people who had recently bought a new property, and did not have ownership of it for more than a year would not be eligible for the tax relief. Meanwhile, collectibles and other taxable categories were not changed by the act.

The tax relief reconciliation act of 2003 was intended to boost the economy and keep it going. However, it was very undecided among the general population if it would actually be successful in accomplishing these goals.

Throughout history tax changes have always been more favorable to one group than another. Many people argued that the wealthy would not spend the money to help the economy and that the poor who needed and could use the extra money would not be receiving it.

Others believed that this act would stimulate the economy and that it did not matter that the poor did not receive a break because they paid so few taxes already. After years of trial, most people have received some kind of benefit from this relief act.

The stimulation to the economy has yet to be seen however. During the recent economic crisis more tax benefits were placed to help paychecks stretch farther.

Most of these benefits have been designed to help the working middle class. These Levitra Professional benefits come in the form of tax credits most of the time.

Tax credits are much more beneficial to the American middle class than tax deductions. Deductions have only been known to lower the amount of taxable income.

On the other hand, tax credits lower the actual tax that is owed to the federal government. Tax relief through credit and deductions are seen as generally beneficial to the American population, but many more years will have to pass before we see the lasting results of the changes.

Author Bio: Jack R. Landry has worked since 1988 as a tax attorney. He has written hundreds of articles about finding a irs Viagra Professional tax lien.

Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://www.TaxCrisisInstitute.com

Category: Finance/Taxes
Keywords: irs tax lien