Expiration of the Bush Tax Cuts
Most of the tax cuts enacted in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRAA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRAA) will expire at the end of 2010 unless Congress acts to extend them. If the cuts do expire as scheduled, nearly three-quarters of Americans will pay more tax in 2011 and subsequent years.
Observers expect that Congress will extend many of the cuts for most taxpayers but it’s uncertain which provisions would continue for whom. President Obama has proposed letting the tax cuts expire only for high-income taxpayers—couples
with income above $250,000 and others with income over $200,000. Some members of Congress want to make all of the tax cuts permanent. Others would extend them all but only temporarily until the economy fully recovers from recession. And still others would let all of them expire as scheduled.
- What will happen if Congress doesn't act to change current law?
- How would extending the 2001-2003 tax cuts affect average tax rates?
- How would extending the 2001-2003 tax cuts affect after-tax incomes?
- Incremental Expiration or Extension of Provisions in 2001-2003 Tax Acts