January 2013 Archives

From the Deseret News this past Tuesday.

So we avoided the fiscal cliff.  Forgive me if I am less than impressed with our political leaders.

The temporary Bush tax cuts passed in 2001 and 2003 are now permanent for incomes less than $400,000 per year.  The increase in taxes on incomes over this threshold is expected to net $617 billion over ten year.  To be exact, that is $617 billion more in revenue than would have been collected had tax rates on higher incomes remained unchanged.  On the spending side, automatic across-the-board cuts that would have gone into effect on January first will be delayed for two months.

Authors

  • Richard W. Evans is an Assistant Professor of Economics at Brigham Young University

  • Jason DeBacker is an Assistant Professor of Economics at Middle Tennessee State University

  • Kerk L. Phillips is an Associate Professor of Economics at Brigham Young University