2001/2003 Tax Cuts
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Testimony: Robert Greenstein on Tax Proposals in the President's Budget before the Senate Committee on Finance
March 26, 2009
I appreciate the invitation to appear before the Committee today. I am Robert Greenstein, Executive Director of the Center on Budget and Policy Priorities, a policy institute that focuses on fiscal policy issues and issues affecting low- and moderate-income families. This testimony makes the following points: As the Congressional … -
Policy Basics: The 2001 and 2003 Tax Cuts
March 5, 2009
The biggest changes in tax policy enacted under President George W. Bush were the 2001 and 2003 tax cuts, often referred to as the “Bush tax cuts” but formally named the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of … -
The High Cost of Estate Tax Repeal
Revised January 28, 2009
Making permanent the repeal of the estate tax after 2010 — repeatedly proposed by President Bush— would add almost $1.3 trillion to the deficit between fiscal years 2012 and 2021, the first ten years in which the full costs of extending repeal would be reflected in the budget. This cost includes $1 trillion of lost revenues … -
Child Tax Credit Expansion Passed by Congress Will Help 13 Million Children
Updated December 5, 2008
A recently enacted Child Tax Credit provision will benefit 12.9 million children — 2.4 million who will become newly eligible for the benefit and 10.5 million who will see their credit increased because of it — according to the Urban Institute-Brookings Institution Tax Policy Center. These almost 13 million children come from families with parents who … -
Ways and Means Committee Republicans’ Use of Joint Tax Committee Data is Deeply Deceptive
Revised November 12, 2008
In a November 8 press release, Ways and Means Committee Ranking Member Jim McCrery claimed that new estimates from the nonpartisan, highly respected Joint Committee on Taxation (JCT) show that Ways and Means Committee Chairman Charles Rangel’s recently-introduced tax reform bill would raise taxes on 113 million households.[1] The claim is false; the … -
How Projected Surpluses Became Deficits
September 12, 2008
The federal budget is projected to run a $546 billion deficit in 2009, compared with the $710 billion surplus that budget experts projected for 2009 back when President Bush took office nearly eight years ago. This $1.3 trillion deterioration in the nation’s fiscal finances for 2009 can be seen by comparing estimates that the … -
How Robust Was the 2001-2007 Economic Expansion?
Updated August 29, 2008
Proponents of the 2001 and 2003 tax cuts often argue that the economic and employment growth of the past several years establishes that these tax cuts “worked” and had strong beneficial effects. More recently, some have also argued that, with growth slowing, new tax cuts are needed and would reinvigorate the economy. It now appears likely that the economic expansion that … -
Only a Few of the 2001 and 2003 Tax Cut Provisions Benefit Families with Modest Incomes: But a Superficial Treasury Analysis Obscures this Fact
August 7, 2008
A recent Treasury Department release, “Tax Relief in 2001 Through 2011,” shows the reduction in taxes that four hypothetical families with modest incomes are receiving as a result of “legislation enacted during the President’s term in office.”[1] The implication of the release is that the 2001 and 2003 … -
Evidence Shows That Tax Cuts Lose Revenue
Revised July 21, 2008
The claim that tax cuts “pay for themselves” — i.e., cause so much economic growth that revenues rise faster than they would have without the tax cut — has been made repeatedly in recent years and is one of the many tax policy issues that is likely to receive renewed attention in light of the upcoming … -
Smaller Deficit Estimate No Surprise: New OMB Estimates Do Not Support Claims About Tax Cuts
Revised July 13, 2008
The Office of Management and Budget today released a report estimating that revenues for the current fiscal year will be higher, and the deficit lower, than the administration and the Congressional Budget Office projected five months ago. OMB now estimates that the deficit for fiscal year 2007 will be $205 billion, down from the $244 billion estimate in the President’s budget in … -
Tax Cuts: Myths and Realities
Updated May 9, 2008
Since 2001, the Administration and Congress have enacted a wide array of tax cuts, including reductions in individual income tax rates, repeal of the estate tax, and reductions in capital gains and dividend taxes. Nearly all of these tax cuts are scheduled to expire by the end of 2010. Making them permanent would cost about $4.4 trillion over the next decade (when the cost of … -
Long-Term Social Security Shortfall Smaller Than Cost of Extending Tax Cuts for Top 1 Percent
March 31, 2008
The Social Security trustees’ report issued this week estimates that Social Security faces a total shortfall over the next 75 years of 0.56 percent of Gross Domestic Product (GDP). This is slightly less than the estimated cost over that same period of extending the 2001 and 2003 tax cuts just for the top 1 percent of … -
Extending the President's Tax Cuts and AMT Relief Would Cost $4.4 Trillion Through 2018
Revised March 28, 2008
President Bush continues to urge that the tax cuts enacted in 2001 and 2003 be made permanent. Despite the severe long-term budget shortfalls the nation faces, the Administration has not proposed measures to offset the cost of extending these tax cuts. Nor has it proposed measures to pay for extending relief from the … -
The Skewed Benefits of the Tax Cuts: With the Tax Cuts Extended, Top 1 Percent of Households Would Receive Almost $1.2 Trillion in Tax Benefits Over the Next Decade
Revised March 28, 2008
Under current law, nearly all provisions of the 2001 and 2003 tax cuts are scheduled to expire at the end of 2010. The President’s budget calls for making these tax cuts permanent. The enacted tax cuts and their extension carry a high cost. This raises the question: how would the large sums involved be … -
Capital Gains Tax Cuts Slashed Taxes of Top 400, While Their Incomes SoaredCapital Gains Tax Cuts Slashed Taxes of Top 400, While Their Incomes Soared
March 27, 2008
New Internal Revenue Service (IRS) data show that the 400 U.S. taxpayers with the very highest incomes pay only 18 percent of their income, on average, in federal individual income taxes. The data, published by the Wall Street Journal and the Urban-Brookings Tax Policy Center, provide detailed income and tax information for the 400 tax filers with the highest adjusted gross incomes (AGI) in … -
Have the 2001 and 2003 Tax Cuts Made the Tax Code More Progressive?
March 11, 2008
Supporters of extending the 2001 and 2003 tax cuts claim that these tax cuts’ benefits have been broadly and fairly distributed. Some argue that the tax cuts have actually made the tax system more progressive, pointing to Congressional Budget Office (CBO) data showing that the share of total federal … -
Claim That Congressional Budget Plans Call for "Largest Tax Increase in History" is Inaccurate
March 7, 2008
Some are claiming that the budget plans adopted this week by the House and Senate Budget Committees — the full House and Senate are scheduled to consider their respective committee’s plan next week — would constitute “the largest tax increase in history.” This … -
Administration's Budget Does Not Reflect Administration Policies
March 5, 2008
Administration’s fiscal year 2009 budget released on February 4 did not fully reflect the Bush Administration’s policies. While claiming to reach a surplus of $48 billion by 2012, the budget projections omitted the costs of two policies central to the Administration. The Administration says it is committed … -
The Dubious Priorities of the President's FY 2009 Budget
Revised February 7, 2008
The President’s budget would provide more tax cuts heavily skewed to the most well-off while cutting vital services for low- and moderate-income Americans, generating large deficits, and increasing the strain on states already confronting budget problems as a result of the economic downturn. The budget … -
President's Expected Push to Make Tax Cuts Permanent is Irresponsible Fiscal and Economic Policy
January 28, 2008
In his State of the Union address this evening, President Bush is expected to renew his push to make his signature tax cuts permanent. In recent weeks, Administration officials have offered three major arguments for this policy — (1) the tax cuts yielded strong economic growth over the past few years, (2) extending them … -
Another Misdiagnosis: Marginal Rate Reductions and Extensions of Tax Cuts Expiring in 2010 Not the Right Medicine for the Economy’s Current Ills
January 15, 2008
Six months ago, the economy was growing steadily, and the President gave an address in which he claimed that the 2001 and 2003 tax cuts had brought about strong economic growth and should be made permanent to ensure strong growth over the long run.[1] Prominent conservatives recommended a corporate rate cut to make U.S. businesses … -
The AMT's Growth Was Not "Unintended"
November 30, 2007
Various Administration officials, senators, and House members are urging Congress to waive its Pay-As-You-Go rules and deficit-finance the Alternative Minimum Tax (AMT) “patch.” The AMT’s explosive growth, they argue, was unanticipated and unintended, and so measures to prevent that growth should not have to be paid for. Even if the AMT’s growth were unanticipated, … -
Historical Averages Not a Meaningful Benchmark for Future Revenues
August 22, 2007
The “Mid-Session Review” that the Office of Management and Budget issued last month projects that revenues will be slightly above their 30-year average in 2007, measured as a share of the economy. The Administration and many of its supporters have cited this fact as evidence that current tax policies are generating an … -
The Effects of the Capital Gains and Dividend Tax Cuts On the Economy and Revenues
Revised July 12, 2007
With the fourth anniversary of the 2003 capital gains and dividend tax cuts just past and the Office of Management and Budget’s Mid-Session Review released today, supporters of making these tax cuts permanent are reiterating their claim that the tax cuts boosted the economy and increased federal revenues. For example, a release from the Senate Republican Policy Committee contends … -
What the 2007 Trustees' Report Shows about Social Security
April 24, 2007
Executive Summary On April 23, the Social Security Board of Trustees released the 67th annual report on the program’s financial and actuarial status. The report projects that Social Security’s trust fund reserves will be exhausted in 2041, one year later than in last year’s projection. In 2041, Social Security will be … -
CBO Provides New Evidence That the 2001 And 2003 Tax Cuts Have Only Modest Economic Effects and Do Not Pay For Themselves
April 13, 2007
A new analysis by the Congressional Budget Office finds that extending the 2001 and 2003 tax cuts could result in a modest increase in the number of hours that people work. However, any “dynamic” revenue gains associated with the resulting increase in wages and salaries would pale in comparison with the cost of extending the tax cuts. Those … -
The 2001 and 2003 Tax Cuts and Small Business
March 21, 2007
The Bush Administration and Congressional supporters of the 2001 and 2003 tax cuts have often asserted that these tax cuts, and especially the reductions in the top two income tax rates, are of great value to small business. They argue that failure to extend these tax cuts would cause significant harm to small business owners. An examination of the relevant data demonstrates, … -
Economic Effects of the Pay-As-You-Go Rule
March 19, 2007
The budget resolution approved March 15 by the Senate Budget Committee would reinstate in the Senate the Pay-As-You-Go budget rule that was in force during the 1990s. (The House of Representatives reintroduced the PAYGO rule several months ago.) PAYGO requires that the costs of any legislation that increases entitlement spending or decreases revenues be offset. Thus, if adhered … -
Have the 2001 and 2003 Tax Cuts Made The Tax Code More Progressive?
March 19, 2007
With debate beginning on the Senate budget resolution, congressional supporters of the 2001 and 2003 tax cuts have begun recycling old arguments for extending all of these tax cuts. Among these is the claim that the tax cuts have made the tax code more progressive. The reality is that the tax cuts have made the tax code more regressive. A progressive tax code is one that makes the … -
Why The Cost of AMT Relief Should Be Included in Estimates of the Cost of Extending the President's Tax Cuts
Revised February 20, 2007
The President’s budget estimates that extending the 2001 and 2003 tax cuts would cost $1.7 trillion over the next decade (2008-2017). (A figure of $1.6 trillion has been cited by a number of media outlets, but this number leaves out the increased outlays that will result from extending the refundable tax credit expansions enacted in 2001; the Administration’s estimate of the … -
Revenue Losses from Repeal of the Alternative Minimum Tax Are Staggering
Revised February 1, 2007
As is increasingly well known, a growing number of taxpayers will become subject to the Alternative Minimum Tax over the next ten years if relief from the tax (which has been provided by Congress on a year-to-year basis) is not extended. A growing fraction of those affected by the AMT will be middle- or upper-middle class families. The Urban … -
Two High Income Tax Cuts Not Yet Fully in Effect Will Cost Billions Over the Next Five Years Freezing the Tax Cuts at 2007 Levels Would Yield Significant Savings
February 1, 2007
On January 5, the House of Representatives voted to reinstate the “Pay-As-You-Go” (PAYGO) budgeting rule, and Democratic leaders have promised that the Senate will follow suit. Because PAYGO requires that legislation that increases entitlement spending or reduces revenues be paid for, the rule increases the need to find offsets to pay for high priority legislation and to … -
New CBO Report Shows Only Modest Fiscal Improvement
January 24, 2007
Several key findings and conclusions emerge from the new Congressional Budget Office report on the budget and the economy issued today.[1] The CBO report shows significant improvement in the ten-year budget outlook, but the improvement is not nearly as large as a casual reader of the report might think. Part of what appears to be an … -
Treasury Dynamic Scoring Analysis Refutes Claims by Supporters of the Tax Cuts
Revised August 24, 2006
On July 25, the Treasury Department released a study entitled “A Dynamic Analysis of Permanent Extension of the President’s Tax Relief.” This study refutes many of the exaggerated claims about the tax cuts that have been made by the President and other senior Administration officials, the Wall Street Journal editorial page, and various other tax-cut advocates. … -
Putting Their Cards on the Table: Senate Budget Bill Indicates Intention to Pay for Tax Cuts by Sweeping Cuts in Programs for Middle- and Low-Income Households
August 2, 2006
The tax cuts enacted since 2001 have been financed through borrowing — that is, through higher deficits. The sharp estate-tax cut that was approved by the House of Representatives on July 29 and is about to be considered in the Senate would be deficit financed, as well. A new Treasury Department analysis issued on July 25 acknowledges, … -
Pension Conference Agreement Makes Retirement Tax Cuts Permanent But Fails To Offset Their Cost
Revised July 31, 2006
The conference agreement on pension legislation would make permanent provisions enacted in the 2001 tax-cut law to expand tax-preferred retirement and education savings accounts. The conference agreement makes these tax cuts permanent without offsetting their cost. According to Joint Committee on Taxation estimates, making these tax cuts permanent would cost $52.6 billion between 2007 and … -
Statement Robert Greenstein on Pension Conference Agreement
Revised July 31, 2006
The pension conference agreement announced today includes the permanent extension of provisions enacted in 2001 that expand tax-preferred retirement and education savings accounts. But the conference agreement includes no offsets to pay for the cost of these tax cuts. It uses deficit … -
Claim That Tax Cuts "Pay For Themselves" Is Too Good To Be True
Revised July 26, 2006
In recent statements, the President, the Vice President, and key Congressional leaders have asserted that the increase in revenues in 2005 and the increase now projected for 2006 prove that tax cuts “pay for themselves.” In other words, the economy expands so much as a result of tax cuts that it produces the same level of revenue as it would have … -
Do Revenue Surprises Tell Us Much about The Cost of Tax Cuts?
July 18, 2006
The best answer to the question posed by the title of this paper is probably “no,” revenue surprises do not tell us much about the cost of tax cuts. The reason is that revenues are extremely volatile and move up and down in response to a variety of factors that have nothing to do with tax policy. Indeed, the impacts on revenue levels … -
Pension Bill Conference Report May Make Some 2001 Tax Cuts Permanent without Offsetting Their Costs
July 17, 2006
Pension legislation passed by the House late last year included provisions that would make permanent the higher contribution limits for tax-preferred retirement savings accounts enacted in 2001. The pension bill conferees reportedly are considering including these provisions in the pension bill conference report, without offsetting their cost. … -
Cost of Estate Tax Compliance Does Not Approach the Total Level of Estate Tax Revenue
Revised June 9, 2006
It has been claimed that the costs of complying with the estate tax are nearly equal to the total amount of revenue the tax raises. While it is true that wealthy people devote considerable time and money to sheltering their estates from taxation, there is no credible evidence that compliance costs — including the … -
The Capital Gains and Dividend Tax Cuts and The Economy
March 27, 2006
The Treasury Department recently released a report entitled “The Economic Effects of Cutting Dividend and Capital Gains Taxes in 2003.” While the text of the new document acknowledges that gains in the economy since 2003 “are the result of a combination of many factors,” the pictures that accompany the report communicate a less nuanced message. [1] The graphs … -
The Senate Budget Committee's Budget Plan: A Brief Analysis
March 16, 2006
Summary The Senate is scheduled this week to consider a budget plan that the Senate Budget Committee adopted last week on a party-line vote. The plan — known as a budget resolution — is similar in a number of respects (but not in others) to the budget proposed earlier this year by President Bush. It would cut domestic … -
Administration Proposals To Hide Tax-Cut Costs
February 14, 2006
The President’s 2007 budget includes two proposals that risk corrupting federal budget rules in order to facilitate passage of Administration tax cuts. One proposal calls on Congress to adopt a new scoring convention that would make the cost of extending the 2001 and 2003 tax cuts disappear; under this proposal, legislation to … -
Capital Gains and Dividend Tax Cuts
January 30, 2006
The tax-cut package enacted in 2003 reduced to 15 percent the top tax rate on long-term capital gains and corporate dividends. Although these tax cuts are slated to expire in 2008, Congress is already debating as part of the current tax reconciliation process whether to extend these tax cuts for another two years, through 2010.[1] In addition, the President and other Administration … -
New CBO Data Indicate Growth in Long-Term Income Inequality Continues
January 29, 2006
The Congressional Budget Office recently released extensive data on household incomes and tax liabilities for 2003.[1] CBO issues the most comprehensive data available on changes in incomes and taxes for different income groups, capturing trends at the very top of the income scale that are not shown, for example, in Census data. The new CBO report highlights the degree to which … -
New, Unnoticed CBO Data Show Capital Income Has Become Much More Concentrated At the Top
January 29, 2006
Congress is considering whether to extend reductions in the tax rates on capital gains and dividend income beyond their scheduled expiration date at the end of 2008. Proponents of these extensions often argue that stock ownership is widespread and thus the benefits of extending these tax cuts will be widespread as well. In other analyses, we have … -
Increases in CBO's Revenue Projections Do Not Show Tax Cuts Are Helping the Economy
January 27, 2006
New forecasts issued by the Congressional Budget Office confirm that if the tax cuts and Alternative Minimum Tax relief are extended, the nation faces large and growing deficits over the next ten years, with total deficits of between $3.5 and $4 trillion over that period.[1] While still quite high, CBO’s current deficit … -
Drop in Deficit in 2005 Does Not Mean Tax Cuts Are Spurring Economic and Revenue Growth; New IRS Data Confirm Tax Cuts Lose Revenue
Revised January 6, 2006
According to final Treasury Department figures, the deficit for fiscal year 2005 was $319 billion, down significantly both from last year’s level and from projections made at the beginning of this year. This progress is due to an increase in tax collections from last year (and from what had been projected earlier this year). Some are using this fact to argue that the tax cuts … -
House Pension Bill Would Make Some 2001 Tax Cuts Permanent For The First Time
Revised January 6, 2006
Pension legislation passed by the House on December 15 contains a series of pension-related tax provisions that raise serious budgetary concerns and pose significant equity issues. The legislation (H.R. 2830, the Pension Protection Act of 2005) contains measures crafted by the Ways and Means Committee that would — for the first time — make permanent some of the tax cuts enacted … -
Two Tax Cuts Primarily Benefiting Millionaires Will Start Taking Effect January 1
December 28, 2005
Sometime early next year, the House of Representatives is expected to vote on the budget reconciliation legislation that the Senate passed on December 21 and the House passed in a slightly different version on December 19. That legislation would make significant cuts in a number of programs … -
Study Finds Dividend Tax Cut Failed To Boost Stock Prices
December 12, 2005
A recent paper by Federal Reserve economists Gene Amromin, Paul Harrison, and Steve Sharpe finds that the 2003 dividend and capital gains tax cuts did not raise U.S. stock values. As a Wall Street Journal article summarizes it, the study “concludes that the tax cut … was a dud when it came to boosting the stock … -
Capital Gains and Dividend Tax Cuts and Investment
November 14, 2005
Supporters of extending the 2003 capital gains and dividend tax cuts argue that these tax breaks played a pivotal role in turning a lackluster economic recovery into a strong one. In particular, they point to the upswing in investment spending by business that occurred at about the time these tax cuts were enacted. Such … -
Economic Evidence for Extending Capital Gains and Dividend Tax Cuts is Weak
November 9, 2005
In the next few weeks, Congress is expected to consider tax reconciliation legislation that allows for approximately $70 billion in tax cuts between fiscal years 2006 and 2010. The reconciliation bill will likely include extensions of a mix of tax cuts that currently are set to expire at some point during the five-year period … -
IRS Data on the Capital Gains Tax Cut in Each State: Data Show Benefits Sharply Skewed To High-Income Filers
November 7, 2005
During consideration of the reconciliation tax-cut bill in coming weeks, Congress is expected to debate whether to extend a variety of tax cuts scheduled to expire in 2005 or subsequent years. Much attention is likely to be focused on whether to extend the reduction in the capital gains … -
Dividend and Capital Gains Tax Cuts Unlikely to Yield Touted Economic Gains
Revised October 7, 2005
Supporters of the dividend and capital gains tax cuts, which were enacted in 2003 and are slated to expire at the end of 2008, have started a full-court press extolling the virtues of these provisions. This effort is aimed at building support for proposals Congress is expected to consider in coming months to … -
An Estate Tax with a 15 Percent Tax Rate Does Not Represent a Reasonable Compromise
September 22, 2005
.style1 { margin-top: 0; margin-bottom: 0; } .style2 { border-style: solid; border-width: 1px; } .style3 { color: #FFFFFF; background-color: #003768; } .style4 { background-color: #C0C0C0; } .style5 { font-size: xx-small; } .style6 { background-color: #003768; } Senate Finance Committee Chairman Charles … -
Two Tax Cuts Primarily Benefiting Millionaires Slated To Take Effect In January
September 19, 2005
Even before Hurricane Katrina, large deficits were projected far into the future, with the nation’s debt burden ultimately swelling to unsustainable levels. The relief and recovery from Hurricane Katrina is estimated to cost $100 billion to $200 billion, adding to the nation’s mounting debt. … -
Greenspan Rejects Estate Tax Repeal without Offsets
July 22, 2005
In testimony before the Senate Banking, Housing and Urban Affairs Committee on July 21, Federal Reserve Chairman Alan Greenspan reiterated his opposition to tax-cut proposals that increase the deficit and made clear that this opposition applies to proposals that repeal or drastically reduce the estate tax without fully offsetting the costs. With the reappearance of high … -
CBO Finds Tiny Number of Farms Face Estate Tax
July 11, 2005
A new report by the Congressional Budget Office (CBO)[1] lays to rest the myth that the estate tax imposes a significant burden on America’s farmers and forces many of them to sell their farms to pay the tax. In a thorough analysis of IRS data, CBO finds that with the amount of an estate that is exempt from the estate … -
Deficits Frame Coming Debate on Estate Tax
July 8, 2005
Later this summer, the Senate is expected to vote on the fate of the estate tax. While this will not be the first time that lawmakers have expressed their views on whether the tax should be repealed, the upcoming vote will occur in a sharply different fiscal context than earlier votes. As Senator Ron Wyden (D-Ore.), who has … -
Estate Tax Reform Could Raise Much-Needed Revenue: Some Reform Options with Low Tax Rates Raise Very Little Revenue
Revised March 16, 2005
Under current law, the estate tax will be repealed in 2010, and then will be reinstated in 2011. This strange sequence of events will occur because the tax cuts enacted in 2001, including those related to the estate tax, expire after 2010, restoring the law that was in effect prior to 2001. The Administration has called for … -
If Done Properly, Reforming the Estate Tax Could Preserve Much-Needed Revenue
Revised March 16, 2005
A new Center report shows that the estate tax can be reformed in a way that would exempt large numbers of estates from the tax while preserving much-needed revenue that would be lost if the tax were permanently repealed. Under current law, the estate tax will be repealed entirely in 2010, … -
The Simple Story: Tax Cuts Lose Revenues
January 25, 2005
New projections issued by the Congressional Budget Office on January 25 indicate that the tax cuts enacted over the last few years will do little if anything to promote long-term economic growth, but most assuredly will reduce revenue collections and increase deficits. Tax cuts reduce the average rate of revenue growth; tax increases do the opposite The table below displays … -
Fact Sheet: New Details Emerging on Effects of Recent Tax Cuts
Revised September 13, 2004
A new Center report, Studies Shed New Light on Effects of Administration’s Tax Cuts, highlights data and analyses released in the past few weeks that provide a more complete picture of how the tax cuts enacted in 2001, 2002, and 2003 are affecting the economy, the budget, and different income groups.… -
Studies Shed New Light on Effects of Administration’s Tax Cuts
Revised September 13, 2004
A wide variety of informative new data and analyses has been released recently that provide a more complete picture of how the 2001-2003 tax cuts are affecting the economy, the budget, and different income groups. This information comes from two new studies of the tax cuts — one by the Congressional … -
Deficit Picture Grimmer Than CBO's March Projections Suggest
June 4, 2004
In March, the Congressional Budget Office issued new budget projections that show the federal government running a large cumulative deficit over the next ten years.[1] As CBO acknowledges, however, its baseline projection is unrealistically optimistic, since it does not include the costs of continuing various policies, … -
Press Release: Tax Returns: New Report Questions Effectiveness, Design of Bush Tax Cuts through 2004 and Beyond
Revised April 23, 2004
A new study of three years of Administration tax cuts, issued by the Center on Budget and Policy Priorities, finds adverse fiscal, distributional, and long-term economic effects from the tax cuts. The study, Tax Returns: A Comprehensive Assessment of the Bush Administration Tax Cuts, … -
Tax Returns: A Comprehensive Assessment of the Bush Administration's Record on Cutting Taxes
Revised April 23, 2004
Executive Summary The Bush Administration has stood in favor of tax cuts through thick and thin. In the midst of a booming economy and large projected budget surpluses, President Bush’s top economic policy initiative — both as a candidate in 2000 and upon taking office — was to cut taxes.… -
The President’s Proposal to Make Tax Cuts Permanent
Revised January 30, 2004
In his State of the Union address, the President announced his intention to propose to make permanent a range of tax cuts that are scheduled to expire by the end of 2010. Last year’s budget featured a similar proposal. Since then a new round of tax cuts has become law — including the reduction in the tax rates on … -
Making Tax Cuts Permanent Would Pose Long-Term Economic Dangers
January 23, 2004
A new Center report, The President’s Proposal to Make Tax Cuts Permanent, examines the proposal in the President’s State of the Union address to make permanent a range of tax cuts that are scheduled to expire by the end of 2010. (Last year’s budget included a similar proposal, but the subsequent enactment of a new …
