Image: Impact of Bush Tax Cut Extension

Description: Impact of permanent Bush tax cut extension including estate tax Overview Permanent extension of the Bush tax cuts adds about 2% of GDP to the deficit. The following two quotes are included in a September, 2010 Congressional Research Service(CRS) report:[1] "Figure 5 displays the trend in federal deficits as a percentage of GDP from 1980 to 2020. Under current law the federal deficit is projected to decline from 9.2% of GDP in 2010 to 3% of GDP by 2020. If all the Bush tax cuts are permanently extended (including the repeal of the estate tax) the deficit is projected to be 5.1% of GDP in 2020 and on a clearly unsustainable path of increasing deficits. Neither of the projections take into consideration likely annual changes to the alternative minimum tax (AMT), with a projected 10-year cost of about $1,500 billion." "The Bush tax cuts are scheduled to expire at the end of 2010, and the tax parameters revert back to their 2000 values (the current law baseline). Some policymakers have proposed to permanently extend the Bush tax cuts. CBO estimates that permanently extending the tax provisions of EGTRRA and JGTRRA would increase the deficit by $1,215 billion over five years and by $3,312 billion over 10 years."
Title: Impact of Bush Tax Cut Extension
Credit: Congressional Research Service
Author: Congressional Research Service / Uploaded by Farcaster (talk) 17:13, 12 December 2010 (UTC)
Usage Terms: Public domain
License: Public domain
Attribution Required?: No