Bush
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Bush
After President Bush and Congress cut tax rates on dividends and long-term capital gains to a top rate of 15 percent in 2003, many investors bought stocks that make big cash payouts, expecting to benefit from lower taxes. But the interaction of the alternative tax and the 2003 Bush tax cuts directly affect the taxation of investments in stocks. In his State of the Union address, President Bush again called for making his tax cuts permanent, but he said nothing about overhauling or repealing the alternative minimum tax. Over the next decade, the alternative tax will cost Americans $1.1 trillion in additional taxes, of which $739 billion is a result of the Bush tax cuts not being integrated into the levy, according to a report by the Congressional Joint Committee on Taxation.