Thursday, November 24, 2005
In 2001 and 2003, President George W. Bush proposed and Congress passed a series of tax cuts to reinvigorate the economy and reduce the government’s burden on workers’ paychecks. Because of opposition to these measures from some in Congress, the 2001 and 2003 tax cuts were implemented as temporary measures, all of which will expire by January 1, 2011. In 2004, Congress passed short-term extensions of several cuts, and in 2005, Congress allowed one cut to expire. The uncertainty of the future of the tax cuts has an effect on present-day spending by businesses and individuals, who know that they may have to pay higher taxes in the future.