Can someone please explain what the Bush Tax Cut is?

Question

Okay, so I've been given a topic for my speech class and I'm confused about what it exactly is. So I'm supposed to be FOR the Bush Tax cut and that it should be repealed. Again, I know a little information about the Bush Tax Cut but I don't know if I'm interepreting it right. Could someone be so kind to clearly tell in a "simple/easier" way to explain it what exactly what the bush tax cut is and what the heck does repealed mean (I already checked the dictionary and I still don't get it.) I'm supposed to be debating someone over this in front of the class and I'm supposed to be for it. So please, help me out because I don't want to look like a fool. Even I feel like it right now, but I really your guys' help. Also whoever replies, does it help the middle & lower class?
PLEASE NO CRITCISM & NO SMART-ALECK ANSWERS*
I seriously need help, because this topic is out of my league and it's a 1/4 of my mid-term. I'm not asking how to make my speech but I have NO idea what the Bush tax cut is

Answer 1

OK. The 'Bush tax cut' can refer to either of two rounds of tax cuts undertaken by the government during Bush's first term when the Republicans controlled Congress.

The first was a cut in income taxes in 2001 (ie taxes taken out of your salary.)

The second was principally a reduction in capital gains and dividend taxes (capital gains taxes are taxes on profits made from investments in stocks, bonds, etc; dividend taxes are taxes on the profits that companies pass on to their stockholders.) This was enacted in 2003.

'Repealed' means to strike down an existing law. Repealing the Bush tax cuts would return tax rates to what they were before the tax cuts were enacted. Because the tax cuts are thechnically temporary (they were passed for ten years), they could also be effectively repealed simply by not renewing the law.

I hope that helps. Look up 'Bush tax cuts' on wikipedia and you should get a good overview.

Answer 2

If you are for the tax cuts, then you don't won't them repealed. Here is a brief summary of the tax cuts:

The President has proposed a bold and fair tax relief plan that will reduce the inequities of the current tax code and help ensure that America remains prosperous. This tax relief plan promotes the values that make the American economy second to none -- access to the middle class, family, equal opportunity, and the entrepreneurial spirit. This plan will reduce taxes for everyone who pays income taxes, and it will encourage enterprise by lowering marginal tax rates.

Under the President’s tax relief plan, the typical American family of four will be able to keep at least $1,600 more of their own money.

Over the past several months, the economy has slowed dramatically. President Bush’s tax cut will give the economy a timely second wind by placing more money in the hands of consumers and entrepreneurs. President Bush also understands that, over the long run, wealth is created by hard-working, risk-taking individuals, not government programs. Countries with low taxes, limited regulation, and open trade grow faster, create more jobs, and enjoy higher standards of living than countries with bigger, more centralized governments and higher taxes. The United States has led the way in economic performance over the last century because America is a freer country. If people are given the freedom to create, they do. If people are given a stake in the outcome, they succeed.

Answer 3

It is unfortunate that you got stuck with the pro side of this argument, since many of us see these as only benefitting the ultra-rich, not the middle class which a majority of us are from. This is from Wikipedia:

During his first term, Bush sought and obtained Congressional approval for tax cuts: the Economic Growth and Tax Relief Reconciliation Act of 2001, the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. These acts increased the child tax credit and eliminated the so-called "marriage penalty." Arguably, cuts were distributed disproportionately to higher income taxpayers through a decrease in marginal rates, but the change in marginal rates was greater for those of lower income, resulting in an income tax structure that was more progressive overall. Complexity was increased with new categories of income taxed at different rates and new deductions and credits, however; at the same time, the number of individuals subject to the alternative minimum tax increased since it had remained unchanged.

Facing opposition in Congress, Bush held town hall-style public meetings across the nation in 2001 to increase public support for his plan for a $1.3 trillion tax cut. Bush and his economic advisers argued that unspent government funds should be returned to taxpayers. With reports of the threat of recession from Federal Reserve Chairman Alan Greenspan, Bush argued that such a tax cut would stimulate the economy and create jobs. In the end, five Senate Democrats crossed party lines to join Republicans in approving Bush's $1.35 trillion[1] tax cut program — one of the largest in U.S. history.

I've also included a Google search link you might take a look at. Sort thru this and see if there's anything there that can help you. Best of luck!!


P.S. I've included a more indepth explanation on my Yahoo 360 blog. Hope it helps!

Answer 4

This explains it very well:
http://www.whitehouse.gov/news/reports/taxplan.html

Basically, the tax cut raised the amount a person can earn without paying any taxes. It also lowers the next two levels of
rates for the next income levels. It has helped lower and middle income earners, that's a fact.

Answer 5

The Bush Tax Cut is about the decrease in the tax rate for rich people which should not be tha case. Taxation must be progressive which means that tax rate must increase as the income increases. Thus, there will be higher tax rates for rich people who can afford to buy luxurious things and lower tax rates for the low salaried individuals.

Answer 6

I assume you mean the old ones that will expire within the next few years and not the proposed ones such as eliminating the estate tax, etc...

Start by examining exactly what they are:
http://en.wikipedia.org/wiki/Jobs_and_Growth_Tax_Relief_Reconciliation_Act_of_2003