Bushs Tax Cut Essay

1278 Words6 Pages
There are two words in the English language that when combined will cause immediate joy and skepticism at the same time. Tax Cut, although at first it sounds only good there can be some setbacks. George W. Bush entered his term in office with an aggressive agenda to cut taxes that turned heads in his favor; however, some people don’t think his cuts are fair or effective.
The United States economy is slowly creeping towards a recession. The stock market has shown repeated drops. Consumers are not purchasing and even savings and loans are down for fear of a huge economic crash. The only bright spot is a housing market that refuses to yield as apparently consumers are still positive enough to purchase houses.
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His plan is to totally cut 1.6 trillion dollars in the next ten years and he even leaves open the possibility of a 60 billion dollar reduction this year alone. Bush is confident that this plan is sound and very workable thanks to a 5.6 trillion dollar surplus that is being predicted. Overall the Bush plan would reduce marginal tax rates for about 2.9 million of the 13.9 million working families with children that now get the earned income tax credit. Another 2.6 million families would get tax reductions or large tax rebates even though their marginal tax rates would not be affected. the current federal income tax system does not tax the earnings of low income working families with children, but this is only true for very low income families, the lowest five percent in fact. Bush’s plan would increase this to about the lowest eight or nine percent. Bush states that his plan would encourage hard work in the average American household because the more overtime a person works the more their taxes are cut on that extra pay. Many Americans hope that Bush’s plan will be passed and that they can enjoy one of the largest tax cuts in recent history. Economists are hoping that the cut is just what the economy needs to jumpstart the consumers.
Despite the mainly positive outlook towards Bush’s new plans many economist are very skeptic of
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