irishgrl
07-27-2006, 03:20 PM
What the New Treasury Study Says about Tax Cuts and the Economy
7/27/2006 2:28:00 PM
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WASHINGTON, July 27 /U.S. Newswire/ -- A new Treasury Department study on the cost of extending the president's tax cuts refutes many of the exaggerated claims about the economic and revenue effects of the Administration's tax cuts that have been made by the President and other senior Administration officials.
The Treasury study finds that even under the most favorable assumptions, making the tax cuts permanent would have a barely perceptible impact on the economy - an increase of 0.7 percent in the size of the economy after several decades, which amounts to an increase in the average annual growth rate of just a few one- hundredths of one percentage point.
(A few media accounts have mistakenly reported that the Treasury study found an increase of 0.7 percent in the average annual growth rate, which is not correct and is very far off the mark.)
The Treasury study also refutes the President's claim that "The economic growth fueled by tax relief has helped send our tax revenues soaring," - in essence, that the tax cuts have more than paid for themselves.
Instead, under the study's best-case scenario, the modest economic impact of the tax cuts would offset less than 10 percent of the cost of making the tax cuts permanent.
The full text of the study, "Treasury Dynamic Scoring Analysis Refutes Claims by Supporters of the Tax Cuts," is posted to: http://www.cbpp.org/7-27-06tax.htm.
http://www.usnewswire.com
What the New Treasury Study says about Tax Cuts and the Economy (http://releases.usnewswire.com/GetRelease.asp?id=69915)
7/27/2006 2:28:00 PM
--------------------------------------------------------------------------
WASHINGTON, July 27 /U.S. Newswire/ -- A new Treasury Department study on the cost of extending the president's tax cuts refutes many of the exaggerated claims about the economic and revenue effects of the Administration's tax cuts that have been made by the President and other senior Administration officials.
The Treasury study finds that even under the most favorable assumptions, making the tax cuts permanent would have a barely perceptible impact on the economy - an increase of 0.7 percent in the size of the economy after several decades, which amounts to an increase in the average annual growth rate of just a few one- hundredths of one percentage point.
(A few media accounts have mistakenly reported that the Treasury study found an increase of 0.7 percent in the average annual growth rate, which is not correct and is very far off the mark.)
The Treasury study also refutes the President's claim that "The economic growth fueled by tax relief has helped send our tax revenues soaring," - in essence, that the tax cuts have more than paid for themselves.
Instead, under the study's best-case scenario, the modest economic impact of the tax cuts would offset less than 10 percent of the cost of making the tax cuts permanent.
The full text of the study, "Treasury Dynamic Scoring Analysis Refutes Claims by Supporters of the Tax Cuts," is posted to: http://www.cbpp.org/7-27-06tax.htm.
http://www.usnewswire.com
What the New Treasury Study says about Tax Cuts and the Economy (http://releases.usnewswire.com/GetRelease.asp?id=69915)