The 2003 tax law (officially titled The Jobs and Growth Tax Relief Reconciliation Act) provides some tax relief to virtually every individual income taxpayer. Taxes on wages and small business income have been reduced. Changes in the taxation of capital gains and dividend income are encouraging investors—including those investing through IRAs, 401(k)s and Keogh plans—to change investment policies. Indeed, some major financial decisions, generally requiring professional advice, need to be made.

The 2003 tax law is mostly about cuts in individual income tax rates, and is temporary. The cuts, effective in 2003, will first show up in reduced wage withholding.