By now, most Americans are familiar with the term Bush tax cuts,
but many people are not aware of how the expiration of these provisions
will ultimately affect them, or contribute to the looming fiscal cliff.
Expiration of the Bush tax cuts is a contributing factor to the fiscal cliff, which also includes expiration of the “doc fix” and unemployment insurance benefits, sequestration, and a breach of the debt ceiling. Many economists predict that collectively, these events will result in a devastating economic slowdown.
In 2001 and 2003, a series of tax cuts were enacted during the Bush Administration, and were originally scheduled to expire at the end of 2010. Currently, these tax cuts are set to expire on December 31, 2012, and without congressional action, individuals and families across the country will usher in 2013 with a tax increase.
I have put together this background and issue primer on taxes in America to help break down our current federal tax code and shed light on expiring tax cuts. This document does not touch on every complexity of our tax system; there are volumes of works published with the purpose of providing detailed explanations of any one of the topics addressed in this primer. However, it is my hope that this background and issue primer will provide helpful information about our tax system, and in particular, key provisions that are set to expire at the end of the year.
In this document, you will find:
EXPIRING TAX PROVISIONS
AN OVERVIEW of the FEDERAL TAX CODE
STATE and LOCAL TAXES EXPLAINED
FEDERAL TAXES in PERSPECTIVE
WHERE I STAND
LEGISLATION I SUPPORT
RECOMMENDED READING
Click here to read the document.
I hope you find this information helpful. At a time when our country is facing economic hardship, I believe we must work to prevent a tax increase on American families, and ultimately, avoid the fiscal cliff.
Yours in Service,
Congressman Randy Forbes
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