What’s at stake in the 2024 election: Federal debt and the implications for government spending and programs

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What’s at stake in the 2024 election: Federal debt and the implications for government spending and programs
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An Economic Evaluation of the Economic Growth and Tax Relief Reconciliation Act of 2001

Samara R. Potter and William G. Gale
William G. Gale The Arjay and Frances Fearing Miller Chair in Federal Economic Policy, Senior Fellow - Economic Studies, Co-Director - Urban-Brookings Tax Policy Center

March 1, 2002

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.