Additional Bush Tax Cuts that reduced tax rates on dividends and capital gains, expanded deduction for small businesses, additional tax breaks for specific industries and activities.

Significance

• Further expanded tax cuts from EGTRRA, aimed at encouraging investment and job creation. Further increased budget deficit and debate exists on effectiveness in stimulating growth.
• Reduced Dividend and Capital Gains Taxes
• Expanded Small Business Deduction
• Additional tax breaks for specific industries and activities, such as manufacturing, research and development, and alternative energy.
• EGTRRA Tax Cuts were accelerated, bringing forward tax cuts scheduled for later years.
• Increased Deficit