ECON 110-05 Research Paper 2 Bush Tax Cuts When George W. Bush took office January 2001, the United States economy was slowing significantly. To prevent the fear many had of entering a recession, Bush pushed towards stimulating the economy with a series of federal income tax cuts known as the ‘Bush tax cuts.’ Although with intent to create jobs, wealth and opportunities, Bush’s first tax cuts failed to shift aggregate demand. Years later, as President Barack Obama took office the economy was well within a recession. He renewed the tax cuts set by Bush, once again pushing fiscal policy in hopes for a better outcome. The tax cuts are soon to expire at the end of 2011; there is much debate over whether Congress should extend them. There are many who argue over whether the Bush tax cuts were a good or bad idea to begin with and if they are worth being extended. Many think that extending tax cuts will benefit the people and the economy as they view it has done so far. Some people believe that Bush achieved his goal in passing tax cuts, more jobs, opportunities, wealth. Supporters believe that the cuts somehow increased the speed of job
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