An Economic Evaluation of the Economic Growth and Tax Relief Reconciliation Act of 2001

Gale, William G.; Potter, Samara R.

doi:10.2139/ssrn.307040

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An Economic Evaluation of the Economic Growth and Tax Relief Reconciliation Act of 2001

97 Pages Posted: 11 Apr 2002

See all articles by William G. Gale

Samara R. Potter

Brookings Institution

There are 2 versions of this paper

Date Written: March 2002

Abstract

This paper summarizes and evaluates the Economic Growth and Tax Relief Reconciliation Act. Enacted in 2001, EGTRRA is the biggest tax cut in 20 years, and features income tax rate cuts, new targeted incentives and estate tax repeal. Our central conclusions are that EGTRRA will reduce the size of the future economy, raise interest rates, make taxes more regressive, increase tax complexity, and prove fiscally unsustainable.

Keywords: tax relief, income tax, economic growth, EGTRRA, interest rates

JEL Classification: H20, H21, E22

Suggested Citation: Suggested Citation

Gale, William G. and Potter, Samara R., An Economic Evaluation of the Economic Growth and Tax Relief Reconciliation Act of 2001 (March 2002). Available at SSRN: https://ssrn.com/abstract=307040 or http://dx.doi.org/10.2139/ssrn.307040