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2001 and 2003 Bush Tax Cuts and Deficit Reduction
Thomas L. Hungerford (au)
A series of tax cuts were enacted early in the George W. Bush Admin. by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). These tax cuts, which are collectively known as the Bush tax cuts, were originally scheduled to expire at the end of 2010. These tax provisions were extended until the end of 2012 at an estimated cost of $408 billion. Beginning in 2013, many of the individual income tax parameters (such as tax rates) will revert back to 2000 levels. One legislative proposal introduced in the 112th Congress, H.R. 6104 (introduced by Representative Cedric Richmond), would extend the 2001, 2003, and 2009 tax cuts for taxpayers with income below $500,000 for another year. A draft proposal by Senator Harry Reid would extend the tax cuts for taxpayers with income below $200,000 (for singles) or $250,000 (for married couples) for another year, but set a top income tax rate on qualified dividends of 20%. Contents of this report: The Economic Environment; The Budgetary Environment; The Bush Tax Cuts; Options Regarding the Bush Tax Cuts; Long-Term Economic Effects of Tax Rate Increases; Concluding Remarks. Figures and tables. This is a print on demand report.
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