February 7, 2005 02:28 PM | | Bookmark and Share

The fiscal 2006 budget presented by President George W. Bush today calls for giant new tax cuts likely to cost $2.4 trillion over the upcoming decade. At the same time, the President seeks huge reductions in most federal programs.

Most of the 10-year cost of the tax cuts proposed by the President would stem from extending his 2001 and 2003 tax reductions past their sunset dates (generally calendar year 2008 or 2010). As proposed, the Bush tax cut plan oddly leaves out extension of individual alternative minimum tax (AMT) relief, but most observers believe that if Bush’s tax proposals are adopted, AMT relief will be enacted as well. Extending AMT relief would cost $771 billion over 10 years, according to the Congressional Budget Office (CBO), bringing the total cost of Bush’s latest tax cut program to almost $2.4 trillion over 10 years.

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