What did the 2008–10 tax stimulus acts do? Q.What did the 2008–10 tax stimulus acts do? A.The 2008 and 2009 tax acts provided large temporary tax cuts to most households, with the goal of helping the economy recover from the Great Recession. The 2010 tax act extended specific provisions of the 2009 act through 2012, along with most of the 2001 and 2003 income tax cuts enacted during the second Bush administration. It also replaced the Making Work Pay credit with a 2-percentage point reduction in the 2011 payroll tax rate for workers. Read more about What did the 2008–10 tax stimulus acts do?
What is the breakdown of revenues among federal, state, and local governments? Q.What is the breakdown of revenues among federal, state, and local governments? A.Federal, state, and local government receipts totaled $6.8 trillion in 2021. Federal receipts were 64 percent of the total, while state and local receipts (excluding intergovernmental transfers) were 21 percent and 15 percent, respectively. Read more about What is the breakdown of revenues among federal, state, and local governments?
How do financing methods affect the long-run burdens of tax cuts? Q.How do financing methods affect the long-run burdens of tax cuts? A.Tax cuts are financed through reductions in current outlays or higher government debt that will eventually have to be repaid. But the distributional effect of reduced government services and the debt are excluded from standard distributional tables. Read more about How do financing methods affect the long-run burdens of tax cuts?