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Economic Effects of Making the 2001 and 2003 Tax Cuts Permanent

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  • William Gale
  • Peter Orszag

Abstract

All of the provisions of the landmark tax cuts enacted in 2001 and 2003 are scheduled to expire by the end of 2010. This paper analyzes the economic effects of making the tax cuts permanent. We describe the recent tax cuts and the proposals to make them permanent, and explore the consequences of making the tax cuts permanent with regard to the fiscal status of the government, the distribution of after-tax income, and prospects for long-term economic growth. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • William Gale & Peter Orszag, 2005. "Economic Effects of Making the 2001 and 2003 Tax Cuts Permanent," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(2), pages 193-232, March.
    • Handle: RePEc:kap:itaxpf:v:12:y:2005:i:2:p:193-232
    DOI: 10.1007/s10797-005-0494-8
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    Cited by:

    1. Masud Alam, 2021. "Output, Employment, and Price Effects of U.S. Narrative Tax Changes: A Factor-Augmented Vector Autoregression Approach," Papers 2106.10844, arXiv.org.

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