What effect did the tax cuts of 2003 have?

Question

Social Studies

Miley Collier

1 March, 14:12

What effect did the tax cuts of 2003 have?

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Answers (2)

Know the Answer?

Maverick · Answer 1

They caused the government to have a bigger deficit

Explanation:

McGraw Hill, Understanding Economics:

"The 2003 tax cuts put the federal government back in the same deficit spending situation as in 1993. A series of tax cuts reduced taxes in upper income brackets, and government was spending morethan it collected in taxes" (410)

Long · Answer 2

To cope up with the recession in 2001, the tax cuts in 2003 were enacted by the then President Robert Bush.

Explanation:

The income tax cut named as the Jobs and Growth Tax Relief Reconciliation Act was enacted by Bush on May 28th 2003. The primary intention was to end the recession occurred in 2001. This Act reduced the Capital gains tax rate from 20 to 15 percent. It ensured the taxpayers who were paying 10-15 percent slowly reduced to 0 tax in 2008. Small businesses were eased with tax deductions. This has worked effectively for the personal income tax payers and middle class. The gross domestic product showed betterment within a year after the implementation of this act.