George W. Bush Administration

1195 Words May 11th, 2016 5 Pages
The George W. Bush administration is remarkably renowned for passing a major tax-cuts package, known as the Economic Growth and Tax Relief Reconciliation Act of 2001, (Bartels, 2005, p. 19). The package postulated a reduction in the federal income tax rates, increment in the child credits, augmented tax-free retirement contributions and the educational savings account, as well as a gradual elimination of the US estate tax. The entire tax package was to cost the US Treasury over $1.3 trillion (excluding interest) up to 2010, the expected expiry time of the package. If the system was to continue in the later years, the Treasury could end up spending over $200 billion each year. According to Bartels (2005), The Bush move was supported by the ordinary citizens before the passage of the package. The people’s support was not meant to imply the way they were impressed with the package as contributing to inequality, as they were mainly concerned with their own individual welfare. Notably, they wanted a system that could relieve them from paying massive or burdensome amounts of taxes. Though contrary to the perception of the legislation by the people and their personal preferences regarding it, 36% of the tax benefits were to accrue to the richest, who comprised only one percent of the American population. The share was almost equal to the one that was received by those in the bottom who constituted around 80% of the population (Hacker & Pierson, p. 33).
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