An overview of the Bush tax cuts and their effect on the American economy.
This paper introduces and analyzes the topic of the Bush tax cuts. Specifically, it examines the potential effect of the Bush tax cuts on the economy over the next three years. It looks at how the cuts are a controversial measure to boost the nation’s economy during a time of economic stagnation and crisis and how, although they began in 2001 and have continued with revisions through 2003, much of their economic effect on the nation’s monetary situation will continue for the next three years and beyond.
“While not all of the state and local governments’ woes can be blamed on the Bush Tax Cuts, the tax cuts did add to the financial difficulties of the states. They have affected state and local taxpayers with higher taxes on a variety of services, from education to health care and corrections. These higher taxes are often move than any tax cuts received from the Federal Government, and so, the Federal Tax Cuts are negated by the higher state and local taxes. In addition, most states will not see light at the end of the tunnel anytime soon. In fact, states are grappling with many issues in the tax cuts, including the loss of estate tax revenues that will affect states for the next three years, and far beyond.”