Bush Signs Fourth Major Tax Break Package

by Mike Godfrey, Tax-News.com, Washington

06 October 2004

Marking the fourth major tax cut during his presidency, George W. Bush on Monday signed into law a package of popular tax breaks worth some $146 billion.

Under the new legislation, the $1,000-per-child tax credit will remain intact for five more years, married couples will retain relief from the ‘marriage penalty' and the 10% tax break will remain on the first $14,000 of earned income for a further six years.

In addition to the personal tax breaks, the new legislation extends 23 business-related provisions, including a one year extension to the R&D tax credit.

A temporary fix to the Alternative Minimum Tax is also prolonged under the bill, protecting many middle class taxpayers threatened by its growing reach.

"Today with my signature, federal law will extend vital tax relief for millions of American families and add momentum to our growing economy," Bush announced at the signing ceremony in Iowa.

According to the White House, a family of four with an income of $40,000 will save $913 in tax next year as a result of the tax breaks.

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