Designing Tax Cuts to Benefit Low-Income Families

Brief

Designing Tax Cuts to Benefit Low-Income Families

July 1, 2001

Abstract

With support from the Bush administration, the Federal Reserve Board Chairman, and Congress, a major cut in the federal income tax is almost certain. The question now is what type of cut it should be. Proponents often speak as though all tax cuts would benefit all groups. Not all income tax cuts are alike, however. Many popular options in fact provide no benefit to low-income families.

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