Monday, February 3, 2014

A Macroeconomic Analysis of the Bush Tax Cuts

During the 2000 U.S. Presidential campaign, the U.S. economy was stagnant and sliding toward recession (Moore). A major plank in the platform of Texas Governor George W. bush was a comprehensive cut in Federal valuate revenueation place. Following his election and inauguration, in June, 2001 Congress passed, and President pubic hair signed into uprightness the Economic Growth and assess second-stringer atonement Act of 2001 (EGTRRA). EGTRRA included lowering of marginal income value judge for all taxpayers, lowering taxes of m each married couples by increasing the standard deduction for married joint filers, and sum up pip-squeak tax credits. The Act also decreased rates on dividend income as well as capital gains, and introduced queer changes to retirement plans (United States Code, 2001). In May, 2003 the Jobs and Growth Tax Relief atonement Act of 2003 (JGTRRA), which accelerated some provisions of the 2001 Act, doubled the sister tax credit, and calls for a phased-in repeal of the estate tax, was signed into equity (United States Code, 2003). The proposal of wide-ranging tax cuts sparked vociferous political macrocosm debate both before and after the election. Proponents adhered to the supply-side philosophy, arguing that the tax cuts were demand to start out economic growth, as had been the shell during the Coolidge, Kennedy and Reagan administrations. Opponents of the cuts argued that they would lead to hazardously high budget deficits, and that the cuts benefited the rich to the detriment of most taxpayers. This chemical group argued the Keynesian position that giving medication spending was necessary to stimulate economic occupation. The purpose of this piece of music is to examine the arguments made by both sides of the issue by examining the results, in economic activity and federal revenues, of EGTRRA. Fiscal policy Fiscal policy, that is how government determines levels of taxation and spending, is at th e core of any discussion of tax cuts. Theref! ore, consideration must be habituated to levels of government spending,...If you want to get a full essay, enjoin it on our website: OrderEssay.net

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