The 2003 Tax Act and your bottom line

Local CPA Alan Levine will be discussing the impact of the tax bill recently passed by Congress . June 17 at noon at the Cedar Mill Community Library. We asked him to summarize a few of the highlights. He'll cover these topics and more in detail at the meeting, and there will be time for questions.

Some of the biggest changes are a reduction in tax rates on capital gains and dividend income. There’s also an increased depreciation allowance for business assets, from 30% in 2001 to 50% as of May 2003.

The “marriage tax penalty” which leads to married people being taxed at higher rates than singles, has been reduced, and there’s a substantial increase in the child tax credit, nearly $400 more than last year.

It isn’t yet known how this will affect Oregon taxes. In the past Oregon has tied its tax rates to the “Feds” but the legislature may detach rates this year to minimize the revenue-cutting effects on our already waning state budget. “They call it ‘simplification,’ but it usually amounts to a full employment act for CPAs,” Alan mentions. He expects to be kept busy helping clients figure out the intricacies of the new taxes. “These changes will help most of us in small ways, but the bulk of the benefits from these changes will accrue to the very wealthy,” he states.

Be sure to attend the next meeting to get information on how to make decisions that will help your business and family take full advantage of the benefits that do affect you.

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