Bush's Tax Cut Proposal

Essay by EssaySwap ContributorUniversity, Master's February 2008

download word file, 7 pages 3.0

President George W. Bush during his campaign for election of the President of the United States of America promised to cut 1.6 trillion to 2.0 trillion dollars in taxes over the course of ten years. He argued that the people of the U.S.A had paid too much money in taxes and that something should be done with this money. There was a surplus of money and Bush said that it should be given back to the people. Bush?s tax cut plan has passed Congress and the Senate and is now going to the Conference Committee, which is a committee, composed of congressmen and senators. I will talk about Bush?s original tax cut plan and go over the different parts of it before it was changed by Congress and the Senate. Bush?s tax cut plan is too long to discuss every single part of it but I will talk about the main parts of it.

These are the main parts of it reducing the tax brackets from five to four, raising the child tax credit to one thousand from five hundred, reducing the marriage penalty by reinstating ten percent deduction on two earner couple, eliminate the estate or death tax, expanding charitable deductions to non-itemiser, to make Research and Development credit permanent. I will go into detail on all of these parts.

Under the Bush tax cut plan he cuts down the current fifteen percent tax bracket to ten percent for the first six thousand of the taxable income for singles, the first ten thousand for single parents and the first twelve thousand for married couples. In the second bracket it will be six thousand up to twenty-seven thousand-fifty, they will pay fifteen percent of the tax if they are single and if they are head of a household they will...