Essay: Bush Tax Cuts
The bush tax cuts were laws geared towards facilitating economic growth and relief the tax payers some burden. The marginal tax rate is the tax on the last dollar earned by the house hold and this varies with the income bracket. These are taxes that are employed to create economic growth by increasing the government spending on various viable projects while protecting the tax payers. The Bush tax cuts were implemented in 2001. As their expiry date approached, a hot debate is taking place on whether they should be prolonged or their structure changed. In reference to the present economic conditions, the Bush tax cuts cannot be afforded by the American economy. This is because globalization has made the US very susceptible to global economic changes.
The bursting of the housing bubble, the technological changes occurring daily are adversely and directly affecting the US economy hence making the economic recovery to occur very slowly. Though the tax cuts have had positive effect on the live of the common ma, the external macroeconomic factors effects are so great that sustaining the tax cuts will derail United States any further economic growth. Sustaining the tax reliefs will make the government to have limited resources needed for economic recovery.