Bush tax cuts remain key to budget divide
George W. Bush has determinedly kept out of the spotlight since his US presidency ended, but the tax cuts bearing his name that passed a decade ago still have a grip on the fiscal debate in Washington.
Republicans and Democrats have been warring over Mr Bushs tax cuts in a see-saw battle this week, and Ben Bernanke, the Federal Reserve chairman, discussed them during his testimony on Capitol Hill on Thursday.
They are also at the heart of a budget debate about whether the US will fall over a fiscal cliff at the end of this year, when the Bush tax cuts and other measures expire.
The potential expiration of the so-called Bush tax cuts is the single biggest item in the fiscal cliff, Mr Bernanke said, who said their expiration, along with other budget changes locked in at the years end, will in one hit take funds equal to 3 to 5 per cent of GDP out of the economy.
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