Congress passed and the President quickly signed into law a $330 billion, 10-year tax cut plan that will have a significant impact on the tax bills of every contractor — and their HVACR businesses. The new law largely adopts the House's prescription for trimming taxes on capital gains and stock dividends for at least five years while lowering income tax rates and encouraging business investment.
The legislation contains many of the elements of President Bush's plan for stimulating the U.S. economy, a plan that originally called for $726 billion in tax reductions through 2013. This scaled-back version now cuts taxes by $330 billion for stockholders, individual taxpayers, couples, and businesses, while including $20 billion for financially strapped states, a provision that Bush did not seek.