(1) Federal Economic Policy at the Brookings Institution and Tax Policy Center, 1775 Massachusetts Avenue NW, Washington D.C., 20036;(2) Brookings Institution and Tax Policy Center, 1775 Massachusetts Avenue NW, Washington D.C., 20036
Abstract:
All of the provisions of the landmark tax cuts enacted in 2001 and 2003 are scheduled to expire by the end of 2010. This paper analyzes the economic effects of making the tax cuts permanent. We describe the recent tax cuts and the proposals to make them permanent, and explore the consequences of making the tax cuts permanent with regard to the fiscal status of the government, the distribution of after-tax income, and prospects for long-term economic growth.JEL Code: H24
