Income Tax Cuts, Unemployment Benefits, and Social Security Relief

A deal appears near with President Barack Obama and congressional leaders. The pending bill will essentially give U.S. taxpayers a pay raise which will in turn pump money into the recovering economy almost immediately. The deal will also boost the creation of hundreds of thousands of jobs over the next two years.

The big . . . → Read More: Income Tax Cuts, Unemployment Benefits, and Social Security Relief

Bush Tax Cuts and Economic Growth

In 2001 and 2003, former U.S president George W. Bush signed Economic Growth and Tax Relief Act (EGTRAA) and Jobs and Growth Tax Relief Reconciliation Act (JGTRAA). EGTRAA reduced personal income tax rates, increased child tax credit, decreased estate tax and introduced a various range of tax-favored retirement savings plans. In 2003 when EGTRAA . . . → Read More: Bush Tax Cuts and Economic Growth

Obama: More Tax Cuts for Small Businesses

Late last month, President Barack Obama signed legislation that will cut taxes and provide credit help for small businesses. It is yet another step that the government is taking to continue programs that spur job growth in the U.S. economy.

The Small Business Jobs Act is now the fourth jobs measure that Congress has . . . → Read More: Obama: More Tax Cuts for Small Businesses

Positive Effects of Bottom-Up, Demand-Side, Consumer Tax Cuts

Consumer spending makes up about  70% of the US Economy.

On April 1, 2009, low- and middle-income workers started seeing a bit more in their paychecks, thanks to the “Making Work Pay” tax credit in the federal recovery act. The tax credit is 6.2 percent of a taxpayer’s earned income with a maximum credit . . . → Read More: Positive Effects of Bottom-Up, Demand-Side, Consumer Tax Cuts

American Recovery and Reinvestment Act?

The American Recovery and Reinvestment Act, commonly known as “the Obama stimulus plan” or “bailout plan” got signed into law recently, after weeks of haggling in the House. The stimulus plan has a total price tag of $787 billion, and represents 5.5% of gross domestic product (GDP), although its impact on the economy may be [...] . . . → Read More: American Recovery and Reinvestment Act?