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Making temporary tax cuts permanent

One of the major economic policy initiatives for which GW Bush has been criticized-- even by some economists and politicians within his own party-- is a proposal to make permanent the "temporary" tax cuts that sharply reduced rates on high income taxpayers and which were initiated in the economic slump during his first term in office. (these tax rate reductions were originally scheduled to fade out between 2008 and 2010)

What economic arguments/assumptions could be used to justify Bush's policy of making his temporary tax cuts permanent? What arguments/assumptions could be used to justify rolling back those tax cuts (increasing taxes) at this time?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M924602

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