JGTRRA 2003
The Jobs and Growth Tax Relief Reconciliation Act of 2003. Cut the US federal tax rate on QUALIFIED DIVIDENDS from ordinary-income rates (up to ~39.6%) down to the long-term-capital-gains rate (15% at the time, 15-20% today). The reform substantially narrowed the historical tax wedge against dividends, partly explaining the modest rise in dividend initiations 2003-2007 (Chetty + Saez 2005). Did NOT, however, slow the parallel rise in buybacks — by the late 2000s, buybacks exceeded dividends in aggregate S&P 500 payout.
Lessons that use this term
Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
Open this term in the app → — no account needed; browse the full glossary while you research.