The Bush tax cuts refers to all the laws that are within the economic growth and tax relief reconciliation act of 2001 and the jobs and growth tax relief reconciliation act of 2003.Thse are two acts that were developed and enacted during the era of George Washington Bush as the president of United states of America. They were formulated with the aim of saving the economic struggle from the people of America during the period where global recession was a thing to worry about. It favored various people and organizations for ensuring that they are able to survive in the global recession.
The Economic Growth and Tax Relief Reconciliation Act of 2001 is one of the cuts that have so far made various reformations of the United States Internal proceeds cryptogram. It has made changes on income rate of taxes, as well as the estate and the gift tax exclusions. It has also affected the eligible as well as the sequestration rules of planning. This act was designed and intended to lower the rates of taxation as well as simplifying the rules that are related to retirement planning. The personality retirement accounts plan and the pension strategy are just a few of the most affected by the act. The variations after the act during President Bush era were noticeable from a far and they even fueled the publication of articles that together with other publications of books and analytical papers sought to show the variations and how one could have used them at his or her benefit. All this was done to the benefit of reviving the then depressed dollar economy and it was set to be expired by the year 2010.
A majority of these tax reductions were set to expire after nine years duration. To cut on the waiting period, the Jobs, and Growth Tax relief Reconciliation act of 2003 was implemented and for many of the former act waiting durations were scrapped off from the changes anticipated.
Economic Growth and Tax Relief Reconciliation act of 2001 was a sunset program with provisions that were supposed to regress to the prior provisions before it enacting. This act sunset perspective allowed the schedule to stagnate at the PAYGO letter as it did siphon the monies that could have led to PAYGO confiscation.
The unconventional minimum strain that was related to both of the Bush Tax cuts did lower the subsidiary tax rates in a significant manner for all the American taxpayers. The Alternative minimum Tax checking is a derivative of the Bush acts and is was from the word go formulated to serve the role of ensuring that the rich tax payers do not advantage the tax incentives to cut down their tax obligations by far too much. It is also used in the calculation of the individual tax obligation through the exemption of duty penchant items. The Alternative minimum tax charges were not adjusted at the similar rates and this made many to pay more taxes than is was originally intended. The effect of it was a reduction in benefits that are related to the act by the average income earners such as the ones with huge tax provisions, higher numbers of dependants and other real estate taxes.Want an expert to write a paper for you Talk to an operator now
Beyond the tax cuts that were brought about by the Act, it also led to rebating of revenues gathered in 2000 for all the taxpayers who were bold enough to file the tax return claims. Those who had not received their 2000 tax rebates had the chance of applying for the rebates of 2001 taxes to compliment the 2000 taxes that were not given back.
Economic growth and tax relief reconciliation act of 2001, affected areas that included income taxes in that it led to ac creation of particular fillers who had a taxable income of up to six thousand dollars as well as group ones with up to twelve thousand and household that had over ten thousand dollars has the income. The capital gains tax was too reduced from the prior ten percent taxation to eight percent on all stocks held for five years.
The Jobs and Growth Tax relief Reconciliation Act of 2003, is the other Act that was ascended into law by President Bush after being passed by the congress (Kreisler, 3). This was meant o accelerate particular tax reforms in the 2001 act. It did raise the exemptions sum for the personal alternative tax and lowered the tax provisions on income from the resources gains and dividends. As it checked on the taxes from divided and assets gains the Jobs and Growth Tax relief Reconciliation Act of 2003, followed what as outlined by the 2001 Act.
This second act did accelerate the reductions of credit and the taxation rates in a gradual manner and too did raise the credits passed in the 2001 Act. Through it the taxes reductions that were scheduled for 2006 were enacted in 2003 taxation year. The credit of children taxes was as well increased to an extent that was only to be in 2010 due to the 2003 Act and the penalty on marriages was too raised to what was perceived as the possible 2009 levels yet it was in 2003 calendar year. On top of all these accelerations due to Jobs and Growth Tax relief Reconciliation Act of 2003,the alternative minimum tax threshold level of application was too hiked.
The Jobs and Growth Tax relief Reconciliation Act of 2003 resulted to the rise in the rates of depreciating assets and the total amount that the person paying taxes would make a decision of expending. This facilitated them to deduct the full amount of acquiring the item away from their total earnings without necessarily depreciating the total count (Kreisler, 3).
There are controversies that really realized the benefit of the Bush tax cuts and if they were at all effective as far as the support of growth are concerned. Many of the proposal supporters did argue regarding the effect of the tax cut and they said it was able to spur the economic growth as well as recovery through the opening of the job market. The proponents of lower taxation did argue that Jobs and Growth Tax relief Reconciliation Act of 2003 was able to bring taxes down and the rich were set to benefit all.
Critiques’ on the other hand have argued that the Bush tax cuts had failed to influence economic gains as it led to the rise in the budget dearth and the movement of the tax burden from the wealthy to the middle class earners thus further widening the gaps of disparity. The experts described it as a government regressive wealth distribution program that shifted the burden from the able to the wage earners instead of trying to boost the weak as they struggled with their economic growth.
The congress office on budget too did say that the tax cuts were likely to give rise to the budget deficits though the Bush supporters argued that this generalization ignored the likely growth that would be because of it. As the analysts have put it, letting the Bush tax cuts expire in 2010 would slow down the economic recovery and the Obama leadership has proposed to keep tax cut for the citizens who only earned below two hundred and fifty thousand dollars in a fiscal year.
The Bush tax cuts as argued above, can be said to be related to the stimulation of the economy for purpose of ensuring it will growth from the 2001 and 2002 global economic recession. They have been able to lead to tax reductions that have resulted to reasonable gains in the economic recovery process though other critiques and the opposers of Bush administration relates them to failure and lack of relative consideration of the wage earning citizen. Some feel that it was red tape to have the Bush administration pass the two Acts as they were designed to free the able the tax burden and inflict the pain on the poor and weak. This would result to the widening of the poor and rich gap instead of working it out towards equality.
The tax cuts by the Bush administration was not only able to avail a relief of the taxes to the most rich in the American economy, but it was offered literally to all the taxpayers that were able t pay income dues. The expiring of the Acts in 2010 is critical to the country’s economic recovery and the Obama administration is opposed to a permanent waiver of taxes for the richest of American economy. What the government will chose to do instead is not well known though is advisable to have the acts extended for the betterment of the American economy growth rate. From my perspective I feel that the bush tax cut was a success program and should not be left o expire and the congress should come into agreement on the way forward. Any delay shall have bad effects on the nation’s economic gains and recovery from the global recession and crunch.