Magazine

Table: The Impact of Tax Relief


WHITE HOUSE CLOUT

If the coalition that passed the tax bill hangs together, it may mean future wins for Bush in health care, education, and business tax cuts.

SHORT-TERM ECONOMICS

By providing a modest boost to consumer spending this year, it could raise GDP growth by about 0.5%. Still, most tax-payers won't benefit much until 2002.

LONG-TERM ECONOMICS

Trimming marginal tax rates should eventually provide some stimulus. But the slow phase-ins of top-bracket cuts will dull that impact, while the lack of business tax relief will limit any boost in capital spending.

SOCIAL SECURITY

Funding the tax cut means Bush may have trouble coming up with money to bankroll a shift to Social Security private accounts.

GOVERNMENT SPENDING

Pressure on Congress to hold down domestic spending will grow. But Bush may have to delay Pentagon projects like the Star Wars missile-defense system.


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus