Bush's tax cut or economic growth
& tax relief reconciliation act of 2001 was passed to fuel the
economic growth and tax cut was identified as a fiscal policy tool
to promote the economic growth. It was a good idea, because tax cut
made people and specifically middle class and lower income group to
have relatively bigger disposable income at home to spend more. It
made stimulation of aggregate demand and economy created new jobs
as well. Besides, the strategy of tax cur, helped government to
prevent government spending that had to be done by taking
additional debt from the market. It could increase the total debt
as a % of GDP and it could bring additional burden to the coming
generation. It was prevented with the tax cut plan or the given
act. So, tax cut was a good idea.
Get Answers For Free
Most questions answered within 1 hours.