Tax cuts: myths and realities

Other things equal, I am a tax-cutter not a tax-increaser. The leftist instinct to regard a tax increase on the rich as a good thing in itself--that is, to see a tax increase on the rich as a good thing even if the revenues were spent uselessly--repels me. Having declared that prejudice, I find nothing to disagree with in this new appraisal of the Bush tax cuts by the (left-leaning) Center on Budget Policy and Priorities.

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 $3.5 trillion over the next decade (when the cost of
additional interest on the federal debt is included).


Because important decisions about these
tax policies must be made in the next few years, it is essential to
understand their effects on deficits, the economy, and the distribution
of income.  Supporters of the tax cuts have sometimes sought to bolster
their case by understating the tax cuts’ costs, overstating their
economic effects, or minimizing their regressivity.  Here, we address
some of the myths heard most frequently in recent tax-cut debates.

The center's analysis is well worth reading in full.

Presented by

Saving the Bees

Honeybees contribute more than $15 billion to the U.S. economy. A short documentary considers how desperate beekeepers are trying to keep their hives alive.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Business

Just In