Individual Income Taxes after 2010: Post–Permanence–ism

Abstract

This paper consists of three parts. First, I review the legislative history related to the enactment of two major tax cut proposals during George W. Bush’s presidency, the first in 2001 and the second in 2003. Second, I present results from a simple tax calculator that calculates the expected change in tax liabilities from 2010 to 2011 under current law for taxpayers of different filing status and at different income levels. The paper concludes by exploring some alternative approaches to address the looming tax increase and describes possible lessons from the legislative tax history of 2001–2006.