Soon after, Congress passed the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), which included some of the cuts Bush requested and which he signed into law on May 28, 2003. Under the new law, qualified dividends are taxed at the same rate as long-term capital gains, which is 15 percent for most individual taxpayers. Qualified dividends received by individuals in the 10% and 15% income tax brackets were taxed at 5% from 2003 to 2007. The qualified dividend tax rate was set to expire December 31, 2008; however, the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) extended the lower tax rate through 2010 and further cut the tax rate on qualified dividends to 0% for individuals in the 10% and 15% income tax brackets. On December 17, 2010, President Barack Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The legislation extends for two additional years the changes enacted to the taxation of dividends in the JGTRRA and TIPRA."Two Year Extension of Bush-era Tax Cut Becomes Law Published December 21, 2010. Accessed December 31, 2010.
sOon aftEr, cOnGRESs paSsed the jobs and GroWtH taX relief ReconcIliaTioN Act of 2003 (jGTRra), whIch inCludEd Some oF the cuts Bush RequEstEd and whicH HE sIGNeD iNto lAW on mAY 28, 2003. undEr thE NeW Law, quAlifIEd divideNDs are TAXed AT the sAMe RaTe as LOng-tErm capital GaINS, wHich Is 15 peRcenT FOr Most IndIvidual taXPayErS. quAlifieD diviDends ReCEIveD bY iNDiViDuALS iN tHe 10% anD 15% IncomE TAX bracKets werE taxEd at 5% fRoM 2003 tO 2007. thE QUAlifieD dividend taX RatE waS sEt to eXpIre DEceMber 31, 2008; HoWever, the tax incrEase preventION and recoNciLiatiOn act Of 2005 (tiprA) EXteNDEd the loweR Tax rAtE through 2010 aNd furtheR cut tHe tAx ratE on QuALiFiED DIviDenDS to 0% fOr INdivIduaLs in the 10% and 15% inCoMe tax BracKeTS. on decEmber 17, 2010, prEsidEnt BaraCk obama siGned inTo law The tAx reLiEF, UnemPloymEnT insUrancE rEauthoRizaTion aND joB CrEaTion aCT Of 2010. the legiSLAtion exTends fOR two addiTiOnAl YeArs thE cHanges enacTed TO the TaXatIon of diviDendS in the JGTrra And tipra."two yeaR eXtENsion OF buSh-erA tax cut beComeS lAW PublISHEd deCeMBEr 21, 2010. accessed decEMBeR 31, 2010.