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Реферат на тему Bush Tax Proposal Essay Research Paper IPI

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Bush Tax Proposal Essay, Research Paper

IPI adresses the tax cut proposal that President Bush is presenting before Congress. IPI feels that althouh Al Gore had a good plan for the national tax cut by decreasing the national income tax, George Bush’s proposal was much better because it not only lowers income tax, but also eliminates estate and death tax (accounting for almost 66% of the 1,437.8 billion dollar cut). IPI claims that Al Gore’s proposal would have minimal positive effects on the economy because of three reasons, smaller tax cuts, 75% of Gore’s proposed cuts will give Americans no incentives to work harder or invest more, and targeted tax cuts would phase out at various incomes leading to higher marginal rates and reducing any positive incentive effects. Bush’s tax cut plan on the other hand is considered by IPI to be “more bang for the buck.” In the Bush plan, for every dollar of static loss, Bush cuts would generate $1.80 in added output. The Gore plan would generate a substantially smaller $0.41. The main reason for this is lower interest charges due to the larger surpluss, this results in a smaller loss of revenue when growth is factored in. IPI favors the Bush tax cut proposal because it will do more for the economy due to the larger cut and the reduction in marginal rates. The Bush plan has the potential in the long run to both accelerate growth and exacerbate long-run fincial problems.


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