Tax Cuts: Myths and Realities
Publication Date: May 2008
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Economic projections; Federal budget; Tax code; Fiscal future
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 $4.4 trillion over the next decade (when the cost of additional interest on the federal debt is included).