Argument: Letting Bush tax cuts expire will slow economic growth

Issue Report: Expiring Bush tax cuts for the wealthy in 2010


2010 Congressional Budget Office Report: “CBO assumes that tax reductions enacted earlier in this decade that are currently set to expire at the end of this year do so as scheduled; … Under those assumptions, the federal budget deficit would decline substantially over the next two years—to 4.2 percent of GDP in 2012—and, consequently, the budget would provide much less support to the economy than has been the case for the past two years… CBO projects that the economy will grow by only 2.0 percent from the fourth quarter of 2010 to the fourth quarter of 2011; even with faster growth in subsequent years, the unemployment rate will not fall to around 5 percent until 2014.”[1]