Taxes and the Economy
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High-Income People Would Benefit Significantly From Extension of “Middle-Class” Tax Cuts
August 13, 2010
A fact generally overlooked in the debate over whether Congress should extend the high-income Bush tax cuts — i.e. those targeted exclusively at couples making over $250,000 and single individuals making over $200,000 — is that these households will still receive substantial tax cuts if Congress extends the so-called … -
Extension of High-Income Tax Cuts Would Benefit Few Small Businesses; Jobs Tax Credit Would Be Better
August 3, 2010
Proponents of extending President Bush’s 2001 and 2003 tax cuts for people with incomes over $250,000 argue, in part, that allowing them to expire after 2010 would weaken the economy by hurting small businesses. In reality, however, extending the tax cuts would do little for small business because only the top 3 percent of people with … -
Federal Spending Target of 21 Percent of GDP Not Appropriate Benchmark for Deficit-Reduction Efforts
July 28, 2010
The average level of federal spending over the years since 1970 — about 21 percent of gross domestic product (GDP) — does not provide a reasonable benchmark for the level of spending that will be necessary or appropriate in the future. The Heritage Foundation has proposed that, in developing its recommendations, the … -
Media Briefing: Examining Tax Cuts For Those At The Top
July 28, 2010
Executive Director Robert Greenstein and former Federal Reserve Vice Chairman Alan Blinder discuss whether policymakers should extend President Bush’s tax cuts, which are due to expire at the end of this year, for those at the top of the income scale.
Duration: 10:17
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The Ryan Budget's Radical Priorities
Revised July 7, 2010
I. Summary The Roadmap for America’s Future, which Rep. Paul Ryan (R-WI) — the ranking Republican on the House Budget Committee — released in late January, calls for radical policy changes that would result in a massive transfer of resources from the broad majority of Americans to the nation’s … -
Compromise Provision to Narrow “Carried Interest” Tax Loophole Should Not Be Weakened Further
June 9, 2010
A provision in the jobs bill that the House passed on May 28 would partially close a tax loophole that allows investment fund managers to pay taxes on a large part of their income — their “carried interest” — at the 15 percent capital gains tax rate rather than at normal income tax rates of … -
Ryan’s Response to Center’s Analysis of “Roadmap” Is Off Base
Revised May 6, 2010
We are quite disappointed that, in responding to our analysis[1] of his budget plan, Rep. Paul Ryan accuses[2] the Center on Budget and Policy Priorities of “partisan demagoguery” as well as “factual errors and misleading statements.” Quite the contrary, we applied the same rigorous analytical process to Rep. Ryan’s Roadmap for America’s … -
Podcast: Tax Trends for the Top 400 Taxpayers
April 13, 2010
Trends in income and taxes for the highest-income taxpayers is discussed by Chuck Marr, Director of Federal Tax Policy at the Center.
Duration: 4:08
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High-Income Tax Cuts Should Expire on Schedule
April 1, 2010
Allowing the 2001 and 2003 tax cuts for couples making over $250,000 (and singles over $200,000) to expire on schedule on December 31 represents the best course of action for the budget and the economy. Extending those tax cuts for one or two years, as some have proposed, would be highly ill-advised. It would make it much more likely that … -
Testimony: Robert Greenstein Executive Director, Center on Budget and Policy Priorities, on the Need to Implement a Balanced Approach to Addressing the Long-Term Budget Deficits
March 23, 2010
I appreciate the invitation to appear before you today. I am Robert Greenstein, executive director of the Center on Budget and Policy Priorities, a nonprofit policy institute that conducts research and analysis on fiscal policy matters and an array of federal and state programs and policies. My testimony today makes three major … -
Podcast: Testimony of Robert Greenstein on Addressing Long-Term Deficits
March 23, 2010
Executive Director Robert Greenstein discusses the need to implement a balanced approach in addressing the long-term budget deficit in a testimony before the House Ways and Means Subcommittee on Select Revenue Measures.
Duration: 7:49
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Media Briefing: The Ryan Budget’s Radical Priorities
March 10, 2010
Robert Greenstein and Paul Van de Water discuss the radical priorities in Rep. Paul Ryan’s budget proposal in a media call on March 10, 2010.
Duration: 21:34
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Tax Rate for Richest 400 Taxpayers Plummeted in Recent Decades, Even as Their Pre-Tax Incomes Skyrocketed
February 23, 2010
The effective federal income tax rate for the 400 taxpayers with the very highest incomes has declined by nearly half over the past two decades, even as their pre-tax incomes have grown five times larger, new IRS data show.[1] The top 400 households paid 16.6 percent of their income in federal individual income taxes in 2007, down from 30 … -
Getting the Facts Straight
February 17, 2010
Some of President Obama’s critics and political opponents have launched a line of argument that Obama is mostly to blame for the large federal budget deficits projected for the coming decade and that his Administration’s role in swelling deficits and debt dwarfs that of the previous administration. [1] The critics cite what they … -
Oregon Voters' Approval of Tax Increase Noteworthy as Federal Tax Debate Opens
February 16, 2010
Oregonians’ decisive vote last month to raise taxes on households making over $250,000 calls into question the conventional wisdom that tax-increase proposals are politically untenable regardless of their merit on economic, budgetary, and equity grounds. This has important implications for Congress, which must decide … -
Allowing High-Income Tax Cuts to Expire on Schedule Would Be Sound Economic and Fiscal Policy
Updated February 1, 2010
In his State of the Union address, President Obama called for allowing the Bush-era tax cuts for high-income Americans to expire on schedule at the end of the year. Critics already are attacking this proposal as an unwarranted tax increase that would harm the weak economy and kill large numbers of jobs, especially among small … -
Contrary to Claims, Allowing Estate Tax to Expire Would Make Family Farms and Small Businesses Worse off Overall
December 17, 2009
While estate-tax opponents have held up family-owned farms and small businesses as “poster children” for the benefits of repealing the tax, such estates would be worse off, on balance, if Congress allows estate tax repeal and related tax changes to take effect on January 1, as now seems likely. The estate tax is irrelevant to the … -
Critics Still Wrong on What’s Driving Deficits in Coming Years
Updated June 28, 2010
Some critics continue to assert that President George W. Bush’s policies bear little responsibility for the deficits the nation faces over the coming decade — that, instead, the new policies of President Barack Obama and the 111th Congress are to blame. Most recently, a Heritage Foundation paper downplayed the … -
Statement: Chuck Marr, Director of Federal Tax Policy, on the Senate Debate on the Federal Estate Tax
December 16, 2009
Today’s Senate debate over whether to extend the federal estate tax or let it expire for next year is a study in irony. Under current law, the estate tax, which has been reduced very significantly since 2001 and now only affects the biggest 1 of every 500 estates in America, will expire next … -
Proposed Expansions of Homebuyer Tax Credit Would Be Highly Inefficient and Squander Federal Resources
October 27, 2009
Executive Summary Members of Congress are considering extending — and possibly substantially expanding — the $8,000 homebuyer tax credit enacted as part of the American Recovery and Reinvestment Act (ARRA) of 2009. The credit, which is available to first-time homebuyers with incomes up to $150,000 (up to $75,000 for … -
Presentation for the President’s Economic Recovery Advisory Board Subcommittee on Tax Reform
October 16, 2009
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Video: Robert Greenstein Discusses the President's Budget on Washington Journal
May 8, 2009
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Statement: Chuck Marr, Director of Federal Tax Policy, on the Administration’s International Tax Proposal
May 4, 2009
The Administration’s proposal is a welcome step forward in tax policy because it would make the tax code more balanced, support research and development, and promote fiscal responsibility. Specifically, it would tighten lax international tax rules and … -
House Republican Budget Would Aid Wealthy Individuals and Corporations, Cut Public Services, Slow Economic Recovery
April 2, 2009
The House Republican budget, introduced April 1 by Rep. Paul Ryan (R-WI), calls for a massive transfer of resources from the broad majority of Americans to the nation’s wealthiest individuals and corporations.[1] It provides the richest households with a new round of very costly tax reductions by extending the Bush high-income tax cuts and adding another set of tax cuts that … -
Policy Basics: Deficits, Debt, and Interest
March 19, 2009
Three important terms regarding the federal budget — deficits, debt, and interest — are often misunderstood. For any given year, the federal budget deficit is the amount of money the federal government spends (also known as outlays) minus the amount of money it takes in (also known … -
Costly Isakson Homebuyer Tax Credit Amendment Would Be Ineffective Stimulus
February 9, 2009
An amendment by Senator Isakson that the Senate added to its economic recovery legislation, providing a new $15,000 tax credit for home purchases in the 12 months after enactment,[1] has low bang for the buck as stimulus and is thus a dubious addition to the package. Unlike the $7,500 first-time homebuyer credit that Congress adopted as part of the Housing and Economic Recovery Act in July 2008 — which the new tax credit … -
Bonus Depreciation Tax Cut Unlikely To Provide Effective Economic Stimulus
September 10, 2008
Stimulus legislation enacted in February included a provision that increased the tax deduction which businesses can claim when they purchase certain types of equipment and place it in service during the 2008 tax year. Suggestions are being made that this “bonus depreciation” provision — a form of accelerated … -
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 … -
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 … -
House-Passed Housing Tax Package Improves Significantly on Senate Version: But Addressing the Foreclosure Crisis Will Require Other Measures
Revised June 17, 2008
On April 10, the Senate passed a bill comprised largely of housing-related tax cuts. [1] Six weeks later, the House passed its own housing legislation including its own package of housing-related tax measures. Some of the provisions in House-passed housing tax package have merit, and the House-passed tax package represents a … -
Well-Designed, Fiscally Responsible Corporate Tax Reform Could Benefit the Economy: Unpaid-For Rate Cuts Would Likely Hurt Most Americans in the Long Run
June 4, 2008
Over the past year, proposals for federal corporate tax cuts and corporate tax reform have received increasing attention. The corporate income tax appears to have joined the long list of tax issues likely to be addressed, or at least debated, over the next few years. Already, two different approaches have emerged. In … -
Claims That a Modest Tax Surcharge on Millionaires Would Damage Small Businesses and the Economy Do Not Withstand Scrutiny
Revised May 22, 2008
Supplemental appropriations legislation that the House of Representatives approved last week (H.R. 2642) would impose a modest income tax surcharge on couples with adjusted gross income above $1 million (and singles with AGI above $500,000) to fund an expansion of higher education benefits for veterans.[1] The surcharge would be … -
Senate Housing Legislation Highly Disappointing: Less Than One-Fourth of Cost of Senate Bill Goes for Provisions That Will Actually Help Address the Foreclosure Crisis
Revised May 12, 2008
On April 10, the Senate passed legislation that its supporters say will help struggling families hold on to their homes and assist the communities hit hardest by the foreclosure crisis. Measures that would help achieve these goals, however, account for less than one-fourth of the bill’s cost. The remainder of the cost comes … -
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 … -
Net Operating Loss Measure under Consideration In Senate Has Low Bang-For-The-Buck As Stimulus: No Justification for Waiving PAYGO for the Provision
February 26, 2008
According to news accounts, the Senate will soon consider a housing stimulus package (S. 2636), introduced by Senator Reid earlier this month.[1] While the package primarily targets the housing market, it also includes a measure dealing with business net operating losses. A business experiences a “net operating … -
Senate Rebate Proposal Targets More Funds to Low-Income Households, Boosting Stimulus Impact: Lifting Income Cap Reduces Bang-for-the-Buck, But Changes Are an Improvement Overall
Revised February 1, 2008
The stimulus legislation that was adopted by the Senate Finance Committee on Wednesday would make several changes to the House-passed stimulus package, including significant changes to the tax rebate proposal that on balance would make the rebate more effective as stimulus. While retaining the House rebate’s basic structure, the Finance … -
Senate Action Will Not Delay Rebates
January 31, 2008
The facts are clear: Senate action on the stimulus package will not delay the rebates by a single day. The earliest that the IRS can begin to send out rebates is mid-May. No matter how fast Congress enacts the stimulus package, the IRS cannot start issuing the rebates any sooner because it must first process the 2007 … -
Repatriation Measure Unlikely to Stimulate the U.S. Economy or Boost U.S. Investment — But Will Promote Investment in Tax Havens and Undermine the Corporate Income Tax
January 30, 2008
When the Senate Finance Committee considers stimulus legislation today, Senator John Ensign is expected to offer an amendment dealing with repatriated foreign earnings. Modeled on a provision included in the 2004 American Jobs Creation Act, Senator Ensign’s amendment would create a tax holiday during which repatriated … -
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 … -
An Analysis Of The Rebate Proposal In The Announced Stimulus Deal
January 25, 2008
The centerpiece of the stimulus deal announced yesterday by House Speaker Nancy Pelosi, House Minority Leader John Boehner, and Treasury Secretary Henry Paulson is a proposal to send rebate checks to 117 million U.S. households. The structure of the proposed rebate, while not ideal from a stimulus standpoint, is far superior to the … -
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 Four Pieces of Effective Fiscal Stimulus
January 14, 2008
Recent evidence that the economy has weakened significantly has sparked discussion of possible fiscal stimulus measures. To be effective, such measures must be timely, targeted, and temporary. Timely measures are those that, once triggered, stimulate new spending quickly so that … -
Principles for Fiscal Stimulus Economic Policy in a Weakening Economy
Revised January 11, 2008
The weak December jobs report that the Labor Department issued January 4 is the latest evidence the economy has weakened significantly and is now growing quite slowly. A number of economists continue to believe this slow growth will continue into 2008, but that the economy will avoid slipping into a recession.[1] Some … -
Concerns about the State of the Economy Are Not a Good Reason to Waive Paygo for AMT Relief
December 6, 2007
Several weeks ago, the House of Representatives passed legislation that would provide Alternative Minimum Tax relief for 2007, extend other expiring tax provisions, and offset the cost with various revenue-raising measures. Some have argued that Congress should instead waive its Pay-As-You-Go (PAYGO) rules and deficit finance the cost of the AMT package. … -
Myths and Realities About Changing the Tax Treatment of Private Equity Fund Managers
November 8, 2007
Economists across the political system generally concur that eliminating the tax break for “carried interest” income, a form of compensation received by private equity fund managers, would improve the equity and efficiency of the tax system.[1] The tax code is more efficient when it creates a level playing field. The fact that carried interest income is taxed at the … -
CBO Analysis Shows Economic Benefits of Fiscal Sustainability Are Large and Nearly the Same Whether Taxes Are Raised or Spending Is Cut
September 10, 2007
The economic benefits of reducing long-run deficits are very large, and there is only a modest difference between the economic effects of shrinking deficits by raising taxes and doing so by cutting expenditures. This is the key conclusion of a recent Congressional Budget Office response to a request from Senator Judd Gregg (R-NH), the ranking … -
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 … -
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 … -
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 … -
Testimony of Robert Greenstein on Economic Security and Long-term Budget Projections
January 30, 2007
I appreciate the invitation to appear before you today. I direct the Center on Budget and Policy Priorities, a nonprofit policy institute that conducts research and analysis on fiscal policy matters, as well as on programs and policies for low-income families and individuals. Last winter, the Center was asked by the Carnegie Roundtable on Economic … -
The Long-Term Fiscal Outlook Is Bleak
January 29, 2007
In 2006, the federal government ran a deficit of $248 billion, or about 2 percent of the economy. Deficits are projected to average about 2 percent of GDP over the next ten years, assuming the 2001 and 2003 tax cuts are extended. After that, the fiscal situation is expected to deteriorate markedly. In this analysis, we present new projections for the … -
A Short Guide to Dynamic Scoring
Revised August 24, 2006
In recent years, official scorekeepers and academic researchers have devoted increased attention to the macroeconomic effects of tax cuts. The Treasury also conducted a “dynamic analysis” of the President’s tax cuts that was included in this year’s Mid-Session Review of the budget as well as in a separate Treasury report.[1] … -
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. … -
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 … -
The Recent Upturn in Revenues and OMB's Mid-Session Review
Revised July 14, 2006
Summary The Mid-Session Review issued on July 11 by the White House Office of Management and Budget projects that fiscal year 2006 revenues will be significantly above — and the 2006 deficit significantly below — the levels forecast in the President’s budget in February. This year’s strong … -
A Smoking Gun: President's Claim That Tax Cuts Pay For Themselves Refuted by Administration's Own Analysis
July 11, 2006
In remarks on July 11 touting revised deficit projections in the Mid-Session Review of the Budget, President Bush once again claimed that tax cuts pay for themselves: “Some in Washington say we had to choose between cutting taxes and cutting the deficit….Today’s numbers show that that was a false choice. The economic growth fueled by tax relief has helped send our tax … -
Estate Tax Repeal Would Decrease National Saving
June 8, 2006
Repeal of the estate tax would add about $1 trillion to federal deficits over the first decade in which its costs would be fully felt (2012-2021). These higher deficits would reduce national savings, with the consequence that, in the long run, estate tax repeal would have at best negligible, and possibly negative, effects on the economy. Surprisingly, … -
A "Mere" $300 Billion: Should a $300 Billion Deficit Be Considered a Victory?
Revised June 5, 2006
On May 4, the Congressional Budget Office revised its estimate of the deficit for the current fiscal year (2006) to “significantly less than $350 billion, perhaps as low as $300 billion, assuming enactment of the pending supplemental appropriations and tax reconciliation legislation.”[1] On May 9, Goldman Sachs … -
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 … -
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 … -
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 … -
Congress Using the "Reconciliation" Process Again To Make It Easier To Pass Deficit-Increasing Tax Cuts
Revised October 7, 2005
The House and Senate have approved budget resolutions that assume significant tax cuts. The budget resolution approved by the House of Representatives assumes tax cuts totaling $106 billion between 2006 and 2010, while the resolution approved by the Senate would reduce revenues by $129 billion over this five-year period.… -
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 … -
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 … -
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, …
