What is the current issue with budget cuts now after tax cuts have been passed?
What is the current issue with budget cuts now after tax cuts have been passed? Basically, I need to know the current state of budget cuts based on schools, education, hospitals, etc... Can someone inform me?
- Anonymous1 decade agoFavorite Answer
The "tax cuts" in the recent news merely extended the current tax rates that have been in effect for the last decade. The Bush tax cuts refers to 2 laws created and passed during the presidency of George W. Bush that generally lowered tax rates and revised the code specifying taxation in the US. These were the:
* Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)
* Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA)
The Bush tax cuts had sunset provisions that made them expire at the end of 2010. Whether to renew the lowered rates and how became the subject of extended political debate, which was resolved during the presidency of Barack Obama by a 2-year extension, which was part of a larger tax and economic package, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Given the rates have not changed (and thus federal income is unlikely to change significantly until the economy improves) there is no direct tie between the tax bill and any budget cuts under consideration.
Hope this helps.Source(s): retired attorney with tax practice