Read the text below in order to answer question
Tax Strategies for 2003 and Beyond
Even the accountants are having a hard time keeping all the
phase-ins and phase-outs straight after the last tax law change (the
Jobs and Growth Tax Relief Reconciliation Act of 2003, which was signed
by President Bush on May 28, 2003). Our Tax Act Timeline can help you
take maximum advantage of income, gift, and estate tax laws.
Almost everyone will see a decrease in overall tax paid in 2003.
The ordinary income tax brackets that were due to decrease gradually
over time until 2006 have been accelerated into 2003. The top tax
bracket is now 35%.
Watch out for how those income
tax brackets change over time, however. For example, in 2003- 2004 the
10% bracket applies to $0-$7,000 of income for single filers and
$0-$14,000 for married filing jointly. But in 2005, the brackets shrink
and only $0-$6,000 (single) will quality for the 10% tax and $0-$12,000
for married filing jointly. The brackets change again (back to the
higher levels) in 2008.
According to the author, in 2003 almost everybody's total tax bill will show