Tax Cuts: Myths and Realities

Publication Date: May 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s):

Research Area: Banking and finance

Keywords: Economic projections; Federal budget; Tax code; Fiscal future

Type: Report

Abstract:

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).