The Absurd Report

Tax relief worked. It put the federal tax burden on track toward its historic norm. Combined with an aggressive monetary policy, tax relief helped to restore robust economic growth following the Clinton reces­sion and subsequent shocks early in the decade. It pro­duced a more growth-oriented tax policy for the long term, helping the economy to weather current storms arising in the housing and capital markets. And it made important strides toward fundamental tax reform.

The 2001 and 2003 tax cuts will expire at the end of 2010 unless Congress acts. Congress should act quickly, making the tax cuts permanent, and then pur­sue additional pro-growth tax policies. Many major trading partners, including France, Germany, and other countries throughout Europe, are looking to lower tax rates and reform their tax systems to become stronger competitors, while other economic power­houses such as China and India are bursting onto the scene. Standing still is not an option unless the United States is willing to lose ground consistently and persis­tently in the international economy.

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Tags: Make the Tax Cuts Permanent

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