President's Expected Push to Make Tax Cuts Permanent is Irresponsible Fiscal and Economic Policy
End Notes
[1] For further discussion, see Aviva Aron-Dine, Chad Stone, and Richard Kogan, “How Robust Is the Current Economic Expansion?” Center on Budget and Policy Priorities, revised January 14, 2008, https://www.cbpp.org/8-9-05bud.htm.
[2] Congressional Budget Office, “Options for Responding to Short-Term Weakness,” January 2008.
[3] Douglas W. Elmendorf and Jason Furman, “If, When, How: A Primer on Fiscal Stimulus,” Brookings Institution, January 10, 2008, http://www.brookings.edu/papers/2008/0110_fiscal_stimulus_elmendorf_furman.aspx.
[4] For further discussion, including discussion of claims that extending the tax cuts would boost “confidence” and thereby boost the economy, see Aviva Aron-Dine, “Another Misdiagnosis: Marginal Rate Reductions and Extensions of Tax Cuts Expiring in 2010 Not the Right Medicine for the Economy’s Short-Term Ills,” Center on Budget and Policy Priorities, January 15, 2008, https://www.cbpp.org/1-15-08tax.htm.
[5] The $4.3 trillion figure includes $3.6 trillion in lost revenues and $700 billion in debt service costs. We include the cost of AMT relief because if AMT relief is not extended, the AMT will take back a quarter to a third of the value of the tax cuts. See Aviva Aron-Dine and Robert Greenstein, “Why the Cost of AMT Relief Should Be Included in Estimates of the Cost of Extending the President’s Tax Cuts,” Center on Budget and Policy Priorities, revised February 20, 2007.
[6] Joint Committee on Taxation, “Macroeconomic Analysis of Various Proposals to Provide $500 Billion in Tax Relief,” JCX-4-05, March 1, 2005.
[7] William Gale and Peter Orszag, “Bush Administration Tax Policy: Effects on Long-Term Growth,” Tax Notes, October 18, 2004.
[8] Alan J. Auerbach, “The Bush Tax Cuts and National Saving,” National Tax Journal, September 2002.