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What effect did the tax cuts of 2003 have?

User Wcrane
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2 Answers

2 votes

Answer:

They caused the government to have a bigger deficit

Step-by-step explanation:

McGraw Hill, Understanding Economics:

"The 2003 tax cuts put the federal government back in the same deficit spending situation as in 1993. A series of tax cuts reduced taxes in upper income brackets, and government was spending morethan it collected in taxes" (410)

5 votes

Answer:

To cope up with the recession in 2001, the tax cuts in 2003 were enacted by the then President Robert Bush.

Step-by-step explanation:

  • The income tax cut named as the Jobs and Growth Tax Relief Reconciliation Act was enacted by Bush on May 28th 2003.
  • The primary intention was to end the recession occurred in 2001. This Act reduced the Capital gains tax rate from 20 to 15 percent.
  • It ensured the taxpayers who were paying 10-15 percent slowly reduced to 0 tax in 2008. Small businesses were eased with tax deductions.
  • This has worked effectively for the personal income tax payers and middle class.
  • The gross domestic product showed betterment within a year after the implementation of this act.
User Skate To Eat
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