Question - What did the Bush tax cuts do?

Answered by: Rachel Turner  |  Category: General  |  Last Updated: 16-06-2022  |  Views: 1229  |  Total Questions: 14

In 2001, President Bush proposed and signed the Economic Growth and Tax Relief Reconciliation Act. This legislation: Reduced tax rates for every American who pays income taxes, including creating a new 10 percent tax bracket. Doubled the child tax credit to $1, 000 by 2010. Economists Peter Orszag and William Gale described the Bush tax cuts as reverse government redistribution of wealth, "[shifting] the burden of taxation away from upper-income, capital-owning households and toward the wage-earning households of the lower and middle classes. In 2013 CBPP estimated that, when the associated interest costs are taken into account, the Bush tax cuts (including those that policymakers made permanent) would add $5. 6 trillion to deficits from 2001 to 2018. The Bush Tax Cuts for Families Lowering the maximum estate, gift, and generation-skipping transfer tax rate to 50% in 2002 from 55% in 2001, with an additional 1% reduction each year until 2007. Congress enacted major tax cuts in 2001, 2002, and 2003. The acts reduced marginal income tax rates; reduced taxes on married couples, dividends, capital gains, and on estates and gifts; increased the child tax credit; and accelerated depreciation for business investment.

TAGS: bush tax cuts
https://quizlet.com/139854394/topic-13-quiz-flash-cards/

Bush believed that tax cuts would stimulate the economy, in 2001 Bush pushed a highly controversial $1. 3 trillion tax cut through Congress. Due to these tax cuts and a massive increase in military spending, the US saw large deficits during the Bush years.

https://en.wikipedia.org/wiki/Read_my_lips:_no_new_taxes

On November 5, 1990, Bush signed the Omnibus Budget Reconciliation Act of 1990. Among other provisions, this raised multiple taxes. The law increased the maximum individual income tax rate from 28 percent to 31 percent, and raised the individual alternative minimum tax rate from 21 percent to 24 percent.

https://en.wikipedia.org/wiki/Reagan_tax_cuts

Reagan tax cuts. The phrase Reagan tax cuts refers to changes to the United States federal tax code passed during the presidency of Ronald Reagan. There were two major tax cuts: The Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986.

https://www.taxpolicycenter.org/briefing-book/what-difference-between-marginal-and-average-tax-rates

The average tax rate is the total amount of tax divided by total income. For example, if a household has a total income of $100, 000 and pays taxes of $15, 000, the household's average tax rate is 15 percent. The marginal tax rate is the incremental tax paid on incremental income.

https://www.investopedia.com/terms/t/tax_incidence.asp

Tax incidence (or incidence of tax) is an economic term for understanding the division of a tax burden between stakeholders, such as buyers and sellers or producers and consumers. If demand is more elastic than supply, producers will bear the cost of the tax.

https://en.wikipedia.org/wiki/Economic_policy_of_the_George_W._Bush_administration

Bush administration was characterized by significant income tax cuts in 2001 and 2003, the implementation of Medicare Part D in 2003, increased military spending for two wars, a housing bubble that contributed to the subprime mortgage crisis of 2007–2008, and the Great Recession that followed.

https://en.wikipedia.org/wiki/2000_United_States_presidential_election

As the final national results were tallied the following morning, Bush had clearly won 246 electoral votes and Gore 250, with 270 needed to win. Two smaller states—Wisconsin (11 electoral votes) and Oregon (7)—were still too close to call, but Florida's 25 electoral votes would be decisive regardless of their results.

https://taxfoundation.org/oecd-personal-income-tax-rates-2000-2011/

OECD Personal Income Tax Rates, 2000-2011 2000 2001 2002 44. 0% 44. 0% 39. 6% 47. 2% 43. 0% 39. 0% 40. 0% 40. 0% 35. 0% 60. 0% 52. 0% 52. 0%

https://en.wikipedia.org/wiki/Economic_policy_of_the_Bill_Clinton_administration

Clinton signed the Omnibus Budget Reconciliation Act of 1993 into law. This act created a 36 percent to 39. 6 percent income tax for high-income individuals in the top 1. 2% of wage earners. Businesses were given an income tax rate of 35%. The cap was repealed on Medicare.

https://www.investopedia.com/terms/e/estatetax.asp

An estate tax is a levy on estates whose value exceeds an exclusion limit set by law. However, when the surviving spouse who inherited an estate dies, the beneficiaries may then owe estate taxes if the estate exceeds the exclusion limit.

https://en.wikipedia.org/wiki/Tax_cut

A tax cut is a reduction in the rate of tax charged by a government. The immediate effects of a tax cut are a decrease in the real income of the government and an increase in the real income of those whose tax rates have been lowered.

https://taxfoundation.org/2001-and-2003-tax-relief-benefit-lower-tax-rates-0/

The 2001 and 2003 tax relief lowered this taxpayer's tax rate from 39. 6 percent to 39. 1 percent in 2001, to 38. 6 percent in 2002 and finally to 35 percent in 2003. This increased his after-tax share of income from 60. 4 percent to 65 percent, a 7. 6 percent increase.

https://www.investopedia.com/terms/e/egtrra.asp

The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) was a sweeping U. S. tax reform package that lowered income tax brackets, put into place new limits on the estate tax, allowed for higher contributions into an IRA and created new employer-sponsored retirement plans.

https://en.wikipedia.org/wiki/Economic_Growth_and_Tax_Relief_Reconciliation_Act_of_2001

An act to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002. The Economic Growth and Tax Relief Reconciliation Act of 2001 was a major piece of tax legislation passed by the 107th United States Congress and signed by President George W. Bush.