What did the 2008–10 tax stimulus acts do? Q.What did the 2008–10 tax stimulus acts do? A.The 2008 and 2009 tax acts provided large temporary tax cuts to most households, with the goal of helping the economy recover from the Great Recession. The 2010 tax act extended specific provisions of the 2009 act through 2012, along with most of the 2001 and 2003 income tax cuts. It also replaced the Making Work Pay credit with a 2 percentage point reduction in the 2011 payroll tax rate for workers. Read more about What did the 2008–10 tax stimulus acts do?
How do financing methods affect the distributional analyses of tax cuts? Q.How do financing methods affect the distributional analyses of tax cuts? A.Tax cuts are financed through reductions in current outlays or higher government debt that will eventually have to be repaid. Distributional analyses omit this information as well as the effects of tax increases on current outlays and debt. Read more about How do financing methods affect the distributional analyses of tax cuts?
What options would increase federal revenues? Q.What options would increase federal revenues? A.Policymakers can directly increase revenues by increasing tax rates, reducing tax breaks, expanding the tax base, improving enforcement, and levying new taxes. They can indirectly increase revenues through policies that increase economic activity, income, and wealth. Read more about What options would increase federal revenues?
