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Public Debt And Tax Cut Term Paper

In addition, the state's various tax revenues would dry up by the year 2005 according to the new tax plan, and the repeal of the federal estate tax would be gradually phased out over a period of ten years. (the Impact of the Bush Tax Cut on Working Families) In general, all state taxes are based on an equation that says that all credit must be based against a federal tax liability, and this would in effect mean that the federal government would benefit immensely by the very fact that all the money that was originally intended for the states would be accessible to them from the year 2006 to 2011, and the states would inevitably feel the immeasurable loss. The 'National governor's Association' estimates that the windfall for the federal government in this case would be in the amount of, at a rough estimate, $36.5 billion over a period of six years, and when these figures are reached, then the states in essence would have been forced, by the new tax cuts, to actually subsidize one fourth of the $38 billion that is the amount intended by the government to achieve in its repealing of the federal estate tax. (the Impact of the Bush Tax Cut on Working Families)

In May 2003, the president George Bush signed yet another Tax Cut, the third of a series of gradually phased tax cuts that was designed to help the U.S. Economy to function better. It was widely believed that the President did declare his own, the $350 billion so-called 'tax and spending package' that he himself had at one time described as being 'puny'. The President however described this tax cut as one that would bring relief to workers and their families as the tax would be reduced dramatically for them, and workers with families and children could also look forward to receiving a good pay check from the government very soon, he declared. President Bush said that by this measure of tax cuts all of America's families as well as businessmen would find tax relief whereby all the citizens of America would feel the results of the tax recovery. This third tax cut has actually increased the debt ceiling of the federal government by almost $1 Trillion, serving to amplify...

This figure will inevitably increase the next year, Congress felt, and the amount will be another $600 billion, after which there would be steady increases that would culminate in $12 Trillion at the end of the given time period of ten years. (Bush signs $350 Billion Tax Cut Measure)
The real hope of the Congress was that the new tax cuts would have the real benefits of adding more than 1 million jobs to the present U.S. economy that had actually seen the loss of more than 2 millions in the ongoing slump, and also that the tax cuts would be able to boost up the stock markets. By means of providing gradual short-term infusions into the economy, the president George Bush declared his intentions of saving the American economy from a recession and also of boosting the market by creating additional jobs and better stock markets and so on and thereby impacting the public debt of the United States of America. (Bush signs $350 Billion Tax Cut Measure)

References

Boy, we really need a Tax Cut. Business Week. 26 February, 2001. Retrieved at http://www.businessweek.com/2001/01_09/b3721051.htm. Accessed on 9 November, 2004

Definition of Federal Debt. Retrieved at http://www.google.co.in/search?hl=en&q=define%3AFederal+Debt&btnG=Search&meta=cr%3DcountryINAccessed on 9 November, 2004

Definition of Public Debt. Retrieved at http://www.google.co.in/search?hl=en&lr=&oi=defmore&q=define:Public+DebtAccessed on 9 November, 2004

Gale, William G; Potter, Samara R. The Bush Tax Cut: One Year Later. June 2002.

Retrieved at http://www.brookings.edu/comm/policybriefs/pb101.htm. Accessed on 9 November, 2004

Milbank, Dana. Bush signs $350 Billion Tax Cut Measure. May 29, 2003. Retrieved at http://www.washingtonpost.com/ac2/wp-dyn/A51207-2003May28?language=printerAccessed on 9 November, 2004

The Impact of the Bush Tax Cut on Working Families. July 2001. Retrieved at http://www.afscme.org/publications/issueb/ib0107.htm. Accessed on 9 November, 2004

Sources used in this document:
References

Boy, we really need a Tax Cut. Business Week. 26 February, 2001. Retrieved at http://www.businessweek.com/2001/01_09/b3721051.htm. Accessed on 9 November, 2004

Definition of Federal Debt. Retrieved at http://www.google.co.in/search?hl=en&q=define%3AFederal+Debt&btnG=Search&meta=cr%3DcountryINAccessed on 9 November, 2004

Definition of Public Debt. Retrieved at http://www.google.co.in/search?hl=en&lr=&oi=defmore&q=define:Public+DebtAccessed on 9 November, 2004

Gale, William G; Potter, Samara R. The Bush Tax Cut: One Year Later. June 2002.
Retrieved at http://www.brookings.edu/comm/policybriefs/pb101.htm. Accessed on 9 November, 2004
Milbank, Dana. Bush signs $350 Billion Tax Cut Measure. May 29, 2003. Retrieved at http://www.washingtonpost.com/ac2/wp-dyn/A51207-2003May28?language=printerAccessed on 9 November, 2004
The Impact of the Bush Tax Cut on Working Families. July 2001. Retrieved at http://www.afscme.org/publications/issueb/ib0107.htm. Accessed on 9 November, 2004
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