Can you provide some background related to the Jobs and Growth Tax Relief Reconciliation Act of 2003?
Mark Sellner: The Bush legacy will be one of tax cuts. In 2001 [the Economic Growth and Tax Relief Reconciliation Act] was primarily geared at individual investing and savings. In 2002 [the Job Creation and Worker Assistance Act] was a reaction to Sept. 11 to try to stimulate business spending. In 2003 it is really about pulling pieces from 2001 and 2002 in the form of either accelerated tax cuts or enhanced write-offs. Right now, we have a 35 percent top tax rate. That was already scheduled in 2001. It was just going to be a couple of more years before that kicked in. And that’s a big piece of the 2003 law that just moved forward. Also, the 50 percent bonus depreciation was already in place last year, but at a 30 percent rate. So in 2001 it was about individual rates. In 2002 it was about business incentives. In 2003 it was about enhancing both of those laws to try to jumpstart the economy. Are these tax incentives strictly dedicated to investment in machinery? Sellner:This is going t
