Some leaders in Congress want to increase the federal tax on gasoline by 5.45 cents per gallon, for the first year, and then index it to inflation. They would use the revenue from this tax increase to finance additional spending on highways and other transportation projects, which they say will benefit the economy. Macroeconomic… Read more
(Click here for methodology) The American Jobs Creation Act of 2003 that was sent… Read more
(This methodology supports the research findings found in the WebMemo: Jobs Creation Act: Original Bill Provides Most Growth.) Methodology I. Methods Used to Simulate the Original Version of HR 2896 Researchers at the Center for Data Analysis… Read more
The Jobs and Growth Tax Relief Reconciliation Act of 2003 that the House and Senate passed on May 23 contains some strong pro-growth elements, specifically accelerating the 2001 marginal rate cuts, lowering the taxation of dividends and capital gains and allowing businesses to accelerate depreciation deductions on their investments. Our analysis shows that these three… Read more
Final Tax Cut Package Should Include the Most Pro-Growth Provisions The House and Senate leadership currently has before it three options for cutting taxes and advancing economic growth: the tax legislation recently passed in the House (H.R. 2) and the Senate (S. 1054) and President George Bush's economic plan. To maximize the… Read more
On April 30, Congressman Bill Thomas, Chair of the House Ways and Means Committee, proposed reducing the personal income tax rate on long-term capital gains and dividends to 5 percent for filers in the 10 and 15 percent individual income tax bracket and 15 percent for filers in the higher tax brackets. … Read more
President Bush's proposal to end the double tax on dividends has met with considerable controversy. Opponents claim that dividend tax relief would benefit only the wealthiest taxpayers, while supporters claim that it would spur new corporate investment, leading to additional jobs and higher incomes. This Report provides evidence that the plan would spur higher job… Read more
This CDA Report provides specific examples of… Read more
Congressional efforts to fashion the fiscal year (FY) 2004 federal budget come at a time when the United States faces weaker than expected job growth, shrinking consumer confidence, and a heightened level of risk and uncertainty. Given these circumstances, policymakers should carefully consider opportunities to improve the U.S. economy. Among the plans being considered is one… Read more
This Appendix provides an overview of theoretical issues relevant to macroeconomic modeling of the Economic Growth Package. In addition, it includes specific modeling techniques used to apply these theoretical perspectives to the DRI- WEFA U.S. Macroeconomic Model. ECONOMIC MODEL Heritage Foundation economists in the Center for Data Analysis (CDA) used the… Read more
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