On January 7, 2003, President Bush announced what the Bush Administration is calling a “growth and jobs plan”. This “growth and jobs plan” is an economic plan that includes several proposed tax cuts. Among the many tax cuts proposed, three are especially unique. The first such proposed tax cut involves the elimination of the federal tax on corporate dividends. This tax cut pertains to big business. The second of the proposed tax cuts involves removing the marriage tax penalty, which obviously affects married couples. The third and finally cut that I’ll discuss is the Earned Income Tax Credit. This tax applies to working-class families with children. First an in-depth look at the proposed elimination of the federal tax on corporate dividends.

Under current law, corporate income that is distributed to shareholders in the form of dividends is effectively taxed twice by the fede

The finally proposed tax cut involved the increase in child income tax credit. In 2001, Congressed passed legislation that called for an increase in child income tax credit from $500 in 2001 to $1000 in 2010. Recently Senator Lisa Murkowski tried to secure 67 billion dollars to enable the child income tax credit to continue at $1000 through 2013. Congress did not pass this legislation so in 2011 a family with two children will now be responsible for $1000 more in taxes. After a huge step forward with the 2001 legislation (previously an additional child earned a family a 4% increase) a definite step back has occurred for middle-class families raising children. This may help single people and married couples without children, but it will be at the cost of a lot of children.

ral government. The taxation of the same money twice by the federal government has been a controversy for years. The Bush Administration’s solution is not as simple as

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