Bush Administration Tax Policy: Revenue and Budget Effects

Peter R. Orszag and
Peter R. Orszag Vice Chairman of Investment Banking, Managing Director, and Global Co-Head of Healthcare - Lazard
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

October 4, 2004


This article evaluates recent tax policies in light of the fiscal status of the federal government, and is the third article in a series that summarizes and evaluates tax policy in the Bush administration.

Section II provides estimates of the budget outlook and the revenue and budgetary effects of the tax cuts over a 10-year budget window. Section III examines similar issues over long-run horizons. Section IV discusses the key implications for making the tax cuts permanent. Section V discusses the key implications for the original tax cuts.