Bush (43) Tax Cuts
Definition
The Bush Tax Cuts refer to changes in the United States tax code passed originally during the presidency of George W. Bush. They reduced marginal tax rates for nearly all taxpayers.
Analogy
Imagine if your school cafeteria suddenly started selling lunch at a discount price. More students would likely buy lunch there instead of bringing from home - this is similar to how lowering taxes encourages more spending and investment in an economy.
Related terms
Economic Growth and Tax Relief Reconciliation Act of 2001(EGTRRA): This was one part of the Bush-era tax cuts that provided significant individual income tax relief.
Jobs and Growth Tax Relief Reconciliation Act of 2003(JGTRRA): Another part of Bush-era tax cuts aimed at accelerating certain parts EGTRRA and providing additional measures for stimulating economic growth.
Fiscal Policy: This is the use of government revenue collection (taxation) and expenditure (spending) to influence a country's economy.
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