The President's Proposal To Make Tax Cuts Permanent: $2.2 Trillion Cost Poses Danger To Economy In The Long Run
Publication Date: January 2004
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Tax code; Fiscal future; Economic projections; Income diversity
In his State of the Union address, the President announced his intention to propose to make permanent a range of tax cuts that are scheduled to expire by the end of 2010. Last year’s budget featured a similar proposal. Since then a new round of tax cuts has become law — including the reduction in the tax rates on dividends and capital gains — which increases the cost of making the tax cuts permanent. The cost has risen to a very high level — approximately $2.2 trillion over the next 10 years, including the costs of the higher interest payments that would have to be paid on the national debt.