Research Report The President's Tax Proposal: First Impressions
William G. Gale
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[ Brookings Institution] President Bush's new tax plan is an answer in search of a question. It would provide little short-term stimulus. It seems unlikely to provide much of a long-term boost to growth or jobs. It is an incomplete way to reform corporate taxes. It would not boost investor confidence. It would provide windfall gains for previous actions, rather than encouraging new activity. It would make taxes more complex. It does not fix the alternative minimum tax. It does not resolve uncertainty regarding the repeal of EGTRRA at the end of 2010. It is fiscally irresponsible and unduly weighted toward high-income households.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy Federal budget and economy