President Bush's Tax Plan: Impacts on Age and Income Groups
Almost immediately after Congress enacted the Economic Growth and Revenue Reconciliation Act (EGTRRA) of 2001 in May 2001, there were hints that the phased-in legislation would become a future political battleground. There are those who would like to accelerate the pace of the tax cuts in the name of economic stimulus, and others who think the later phases of the legislation should be permanently canceled. In this AARP Public Policy Institute Issue Brief by John R. Gist, the issue of who gained the most from the income tax cuts in EGTRRA is examined, focusing on age groups, income groups, and types of tax filers. The impact on the federal budget surpluses and the ability to finance Social Security is also discussed. (13 pages)