Publication Date: April 2008
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Richard Kogan; Chad Stone; Aviva Aron-Dine
Research Area: Banking and finance; Economics
Keywords: Economic projections; Fiscal future; Tax code; Federal budget
Proponents of the 2001 and 2003 tax cuts often argue that the economic and employment growth of the past several years establishes that these tax cuts "worked" and had strong beneficial effects. More recently, some have also argued that, with growth slowing, new tax cuts are needed and would reinvigorate the economy.
It now appears that the economic expansion that began in 2001 is drawing to a close. The economy may be entering a recession; if not, it is certainly entering a slow-down. Now is therefore a good time to take stock of the recent economic expansion as a whole. We examine the expansion from 2001, when it began, through the third quarter of 2007, before the slow-down in economic growth in the last part of 2007.