The Bush Tax Cuts
Weighing the Costs of Short- and Long-Term Economic Recovery
In 2001 and 2003, Congress passed legislation significantly lowering tax rates for nearly all U.S. taxpayers. The stated intent was to spur job creation and economic growth. Although the legislation included an expiration date of January, 2011, conservative supporters hoped that the provisions eventually would be made permanent. While some analysts argue that the tax cuts have paid for themselves by increasing revenues through the creation of new wealth, others maintain that they have shifted the tax burden from the rich to the middle and working classes, exacerbating already high levels of income inequality. The Bush tax cuts were a…
