GWBamtMatt

The Bush Tax Cuts, With & Without Adjustments to the Alternative Minimum Tax (AMT)
$-billions
  First Five Years Next Four Years First Nine Years Tenth year TEN YEARS
  2002-06 2007-10 2002-10 2011 2002-11
CTJ estimates of the Bush tax plan:          
Bush tax cuts with AMT rates reduced $–511 $ –1,020 $ –1,531 $ –306 $ –1,837
Increased interest on the national debt +47 +221 +268 +98 +365
Total cost with interest $ 558 $ 1,241 $ 1,799 $ 403 $ 2,202
Effects of not adjusting the AMT:          
Bush tax cuts with no AMT rate reduction (compare JCT below) –463 –857 –1,320 –256 –1,576
Revised Bush interest costs with no AMT rate reduction +44 +125 +169 +84 +254
Total cost of Bush tax plan with no AMT adjustment, including interest $ 507 $ 982 $ 1,489 $ 340 $ 1,829
Compare: Joint Committee on Taxation estimates of the size of the Bush tax cuts (without increased interest) $–460 $ –861 $ –1,321 na na
Note: CTJ's estimate of the size of the Bush tax cuts over their first nine years if the AMT is not adjusted is virtually identical to the estimate by the Joint Committee on Taxation. The Bush campaign has promised, however, that it will take unspecified steps to fix the AMT problem. If that is the case, then CTJ's original estimate of the cost of the Bush tax cuts is more accurate.
Sources: Citizens for Tax Justice, May 3, 2000 (preliminary); Bush Campaign, May 2, 2000.

Last Updated on 5/3/00
By Jennifer Wagner